Higher Education

Our Higher Education campaign is devoted to expanding the opportunity of a college education to all Americans and strengthening our democracy by building an enlightened citizenry. As part of the campaign, one of our primary goals is to make student loan programs more affordable and efficient.

Federal student aid programs benefit more than 5 million students each year, making the difference for many students about whether they can financially pursue a college egree. Unfortunately, federal investment in student aid has fallen short in recent years. The cornerstone of federal financial aid, the maximum Pell Grant, is only worth about half of what it was twenty years ago. And while 60 percent of federal aid was once in the form of grants, as opposed to loans, that ratio has been reversed over the last two decades, so that only 40 percent of federal aid is now grants.

In addition, over the past several years, Congress has frozen most student aid programs. Given inflation increases, this frozen funding amounts to nearly a ten percent cut in funding. Facing significant tuition increases and state budget cuts to higher education, an affordable college education is becoming increasingly out of reach for millions.

Students are borrowing more than ever before to pay for higher education, as tuition levels continue to climb and grant aid fails to keep pace. Today, the average undergraduate borrower leaves school with nearly $20,000 worth of student loan debt. In addition, nearly one-third of all low-income students work more than 35 hours a week to help cover college costs. As federal and state grant aid diminishes, and college costs continue to rise, we must provide college loans on terms that do not take the dream of a college education and turn it into a nightmare of debt lasting far beyond the college experience.

Each year, millions of student borrowers struggle to continue with their education, make important investments, and even pay monthly bills for their living expenses. According to Department of Education data, nearly 40 percent of recent college graduates with student loan debt make monthly payments that are unmanageable, according to the student loan industry's own recommendations.