Seeking to address the spiraling cost of college tuition for students and working families, U.S. Rep. Tom Reed (R-NY) rolled out a comprehensive plan to generate some tuition relief.
Reed’s Vision for Students plan outlines innovative solutions that aim to curb college costs through transparency and accountability.
“We care about the working families and college students that are struggling to keep up with the rising cost of education,” Reed said. “It’s only right that we work together to get these costs in check, which is why we brought together our Vision for Students. We must use all available tools to make sure college is affordable and accessible. That’s why our proposal forces colleges to be transparent about how they are spending tuition dollars.”
Vision for Students includes Reed’s Reducing Excessive Debt and Unfair Costs of Education (REDUCE) Act. The measure would require colleges with endowments totaling more than $1 billion to use at least 25 percent of investment gains on tuition relief for students from working class families or face tax penalties.
The bill would also require colleges to submit cost containment plans to the Department of Education to ensure that tuition increases at a slower rate than inflation. Schools would face reductions in federal aid programs for failing to meet that goal.
“This is about making colleges compete in the marketplace,” Reed said.
“We have to expose them to market forces and stop insulating them with endless taxpayer funding at the expense of students and their families.”
Vision for Students would also require colleges to publicly disclose information about the salaries and total compensation packages of college administrators and employees in searchable databases.
“Our proposal will force colleges to put students first and disclose information that will show families just how tuition dollars are being used, cutting through the smoke and mirrors,” Reed said.
Reed’s plan also includes provisions to allow for student debt interest rate refinancing, to bring more flexibility to student loan repayments, to promote online and alternative forms of learning, and to encourage colleges to partner with high schools on dual enrollment programs.