DOCUMENT RESUME ED 343 502 HE 025 368 TITLE Oversight Hearing on the Reauthorization of the Higher Education Act of 1965: Kearney, Nebraska. Hearing before the Subcommittee on Postsecondary Education of the Committee on Education and Labor. House of Representatives, One Hundred Second Congress, First Session (Kearney, NE, July 15, 1991). INSTITUTION Congress of the U.S., Washington, DC. House Subcommittee on Postsecondary Education. REPORT NO ISBN-0-16-036955-X PUB DATE 91 NOTE 157p.; Serial No. 102-58. AVAILABLE FROM U.S. Government Printing Offices Superintendent of Documents, Congressional Sales Office, Washington, DC 20402. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01/PC07 Plus Postage. DESCRIPTORS Access to Education; Economically Disadvantaged; Educational Finance; Eligibility; Federal Legislation; Federal Programs; Financial Support; Hearings; Higher Education; Minority Groups; *Need Analysis (Student Financial Aid); *Needs Assessment; Nontraditional Students; Parent Financial Contribution; Paying for College; Student Financial Aid; Student Loan Programs; Student Needs IDENTIFIERS Congress 102nd; *Higher Education Act 1965 ABSTRACT At this hearing, one of a series conducted across the nation on the reauthorization of the Higher Education Act of 1965, testimony was heard on issues of concern to three panels of experts on higher education in the state of Nebraska. The witnesses included Robert E. Caldwell, student body president from the University of Nebraska (UN) at Kearney; Wanda Halvorson of the Nebraska Association of Student Financial Aid Administrators; William Hasemeyer of the Mid-Plains Community College Area; Martin Massengale of the University of Nebraska; Andy Massey, president of the UN Student Association; Jeannine Phelan of Educational Planning Centers; Thomas Reeves of Hastings College; Kay Sct.?llenkamp of Chadron State College; Kathleen Seline of Creighton University; Robert Smallfoot of McCook Community College; and Barbara Snyder of UN at Kearney. The issues that the witnesses addressed included cooperative education programs, student financial aid needs assessment reform, Pell Grants, minority access to higher education, burdens on middle income families, programs for disadvantaged students, state aid to students and institutions of higher education, the role of community colleges, and educational opportunities in rural areas. The prepared statements of the witnesses and others are included along with various supplemental materials. (JB) OVERSIGHT HEARING ON THE REAUTHORIZATION OF THE HIGHER EDUCATION AcT OF 1965: KEARNEY, NEBRASKA HEARING BEFORE THE SUBCOMMITTEE ON POSTSECONDARY EDUCATION OF THE COMMITTEE ON EDUCATION AND LABOR HOUSE OF REPRESENTATIVES ONE HUNDRED SECOND CONGRESS FIRST SESSION HEARING HELD !N KEARNEY, NE, JULY 15, 1991 Serial No. 102-58 Printed for the me of the Committee on Education and Labor U.S. DEPARTMENT Of EDUCATION Off we of Educational Research and improvement EDUCATIONAL RESOURCES INFORMATION CENTER !ERIC) This document has been reproduced as received hom the person or organization originating it El Minor changell have been made to improve reproduction quality Points of View Or opinions slated in this docu ment do not necesaarily represent official OERI position or policy U.S. GOVERNMENT ORINTING OFFICE 46 416 WASHINGTON ; 1991 For sak by the U.S. Oovernment Printing Office Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 ISSN 0-16-036955X iABLE 2 BEST CM COMMITTEE ON EDUCATION AND LABOR WILLIAM D. FORD, Michigan, Chairman WILLIAM F. GOODLING, Pennsylvania JOSEPH M. GAYDOS, Pennsylvania E. THOMAS COLEMAN, Missouri WILLIAM (BILL) CLAY, Missouri THOMAS E. PETRI. Wisconsin GEORGE MILLER, California MARGE ROUKEMA, New Jersey AUSTIN J. MURPHY, Pennsylvania grArE GUNDERSON, Wisconsin DALE E. KILDEE, Michigan RICHARD K. ARMEY, Texas PAT WILLIAMS, Montana HARRIS W. FAWELL, Illinois MATTHEW G. MARTINEZ, California PAUL B. HENRY, Michigan MAJOR R. OWENS, New York CASS BALLENGER, North Carolina CHARLES A. HAYES, Illinois SUSAN MOLINARI, New York CARL C. PERKINS, Kentucky BILL BARREIT, Nebraska THOMAS C. SAWYER, alio JOHN A. BOEHNER, Ohio DONALD M. PAYNE, New Jersey scow L. KLUG, Wisconsin NITA M. LOWEY, New York MICKEY EDWARDS, Oklahoma JOLENE UNSOELD, Washington CRAIG A. WASHINGTON, Texas JOSE E. SERRANO, New York PAM' T. MINK, Hawaii ROBERT A. ANDREWS, New Jersey WILLIAM J. JEFFERSON, Louisiana JOHN F. REED, Rhode Island TIM ROEMER, Indiana JOHN W. OLVER, Massachusetts RON DE LUGO, Virgin Islands JAIME B. FUSTER, Puerto Rico PA1RICIA F. RISSLER, Staff Director ANDRKW Z. HARTMAN, Minority Staff Director ON POSTSECONDARY EDUCATION SUBCOMMITTEE Michigan, Chairman WILLIAM D. FORL E. THOMAS COLEMAN, Missouri PAT WILLIAMS, Montana SUSAN MOLINARI, New York CHARLES A. HAYES, Illinois SCOTT L. KLUG, Wisconsin JOSEPH M. GAYDOS, Pennsylvania WILLIAM F. GOODLING, Pennsylvania GEORGE MILLER, California THOMAS E. PETRI, Wisconsin NITA M. LOWEY, New York MARGE ROUKEMA, New Jersey THOMAS C. SAWYER, Ohio STEVE GUNDERSON, Wisconsin DONALD M. PAYNE, New Jamey PAUL B. HENRY, Michigan JOLENE UNSOELD, Washington RICHARD K. ARMEY, Texas CRAIG A. WASHINGTON, Texas BILL BARRETT, Nebrafika JOSE E. SERRANO, New York PATSY T. MINK, Hawaii ROBERT A. ANDREWS, New Jersey WILLIAM J. JEFFERSON, Louisiana JOHN F. REED, Rhode Island TIM ROEMER, Indiana DALE KILDEE, Michigan (ID ;3 CONTENTS Page Hearing held in Kearney, NE, July 15, 1991 1 Statement of: Caldwell, Robert E., II, Student Body President/Student Regent, Univer- sity of Nebraska at Kearney 80 Collin, Connie, Director, Spencer School of Business, representing the Nebraska Council of Private Postsecondary Career Schools 127 Halvorson, Wanda, President, Nebraska Association of Student Financial Aid Administrators 102 Hasemeyer, William, Ph.D., President, Mid-Plains Community College Area 60 Massengale, Martin, President, University of Nebraska 16 Massey, Andy, President, Student Association, University of Nebraska at Kearney 73 Phelan, Jeannine, Program Manager, Educational Planning Centers, NSLP-NEBHELP 89 Reeves, Thomas, President, Hast'^qs College 21 Schallenkamp, Kay, Ph.D., Provost, Chadron State College 42 Se line, Kathleen D., Assistant Vice President, Creighton University, Omaha. NE 36 Smallfoot, Robert G., President, McCook Community College, Member, AACJC 115 Snyder, Barbara, Vice Chancellor for Student Affairs, University of Ne- braska at Kearney 50 Prepared statements, letters, supplemental m;iterials, et cetera: Caldwell, Robert E., II, Student Body President/Student Regent, Univer- sity of Nebraska at Kearney, prepared statement of 84 Clark, Cheri L., Director of Financial Aid, Capital School of Hair Styling, prepared statement of 12 Collin, Connie, Director, Spencer School of Business, representing the Nebraska Council of Private Postsecondary Career Schools, prepared statement of 130 Halvorson, Wanda, President, Nebraska Association of Student Finsncial Aid Administrators, prepared statement of 104 Hasemeyer, William, 111.D., President, Mid-Plains Community College Atea, prepared statement of 64 Massengale, Dr. M.A., President, University of Nebraska, prepared state- ment of 19 Massey, Andy, President, Student Association, University of Nebraska at Kearney, prepared statement of 76 Nebraska, University of, Lincoln, College of Engineering and Technology, prepared statement of 6 Phelan, Jeannine, Program Manager, Educational Planning Centers, NSLP-NEBHELP, prepared statement of 92 Reeves, Thomas, President, Hastings College, prepared statement of 24 Schallenkamp, Kay, Ph.D., Provost, Chadron State College, prepared statement of 44 Schultz, Dr. Larry, Acting Director, Nebraska State College System, pre- pared stahment of 141 (1n) IV Page ceteraContinued Prepared statements, letters, supplemental materials, et President, Creighton University, Se line, Kathleen D., Assistant Vice 38 Omaha, NE, prer )red statement of College, Member, Smallfoot, Robert G., President, McCook Community 117 AACJC, prepared statement of Affairs, University of Ne- Snyder, Barbara, Vice Chancellor for Student 52 braska at Kearney, prepared statement of Association of Student Fi- Walker, Robert, Prespient, Rocky Mountain 8 nancial Aid, prepared statement of 143 Zikmund, Dr. Dale G., prepared statement of OVERSIGHT HEARING ON THE REAUTHORIZA- TION OF THE HIGHER EDUCATION ACT -OF 1965 MONDAY, JULY 15, 1991 HOUSE OF REPRESENTATIVES, SUBCOMMUITEE ON POSTSECONDARY EDUCATION, COMMI1TEE ON EDUCATION AND LABOR, Kearney, NE. The subcommittee met, pursuant to notice, at 9 a.m., at Ockinga Center, University of Nebraska, Kearney, Nebraska, Hon. Pat Wil- liams presiding. Members present. Representatives Williams and Barrett. Staff present: Tom Wolanin, staff director; Maureen Long, legis- lative associate; and Beth Buehlmann, minority professional staff member. Chairman WILLIAMS. This is a hearing on the Reauthorization the Higher Education of Act before the Subcommittee on Postsecond- ary Education. I'm delighted to be in Nebraska at the University of Nebraska at Kearney with your good Congressman Bill Barrett. We have had a couple of dozen hearings on the reauthorization of America's basic Federal law governing higher education. We re- authorize this legislation usually every 5 years. If it is to be reau- thorized, it must be reauthorized in this Congress. We will have another couple of dozen hearings, many of them in places around the country. We're particularly pleased to be with the subcommittee in Nebraska, a State which has a long tradition of excellence in postsecondary education at all levels. And with the inclusion of what was once Kearney State into the university system, we have noticed that your aggressiveness and attentiveness to education and willingness to change continues un- abated here in Nebraska. When I told a friend of mine in Montana that I as coming out with Congressman Bill Barrett to Nebraska, he said, have you got a few minutes. I want to run home and get you something it's like because a visa, it'll help you get in the State and stay there, and he brought me back this button. I don't have to ask you what "go big red" means. The entire world knows what "go big red" means. And so I shall keep this button close at hand as not only a visa but as an indication of Ne- braska's excellence in higher education both on and off of the play- ing field. (1) f; 2 academics only in football but in You have been a leader, not the Nation well and the rest of us in and intellectual excellence as follows your lead in that regard. education, greatly concerned alvat You sent a fine Congressman, with as good unique Nebraska legislature who comes from your to the brought from a legislature credentials as any one has ever of Bill's col- States. I'm delighted to be one Congress of the United this and Labor Committee and on leagues on the House Education subcommittee. we'll interested in the testimony Today, we are going to be wry witnesses will hoping that the various receive. For my part, I am Let me just list other several specifics. address to some degree or quickly. them off for you rattier you've in Nebraska continue to, as First is access. I know people the uni- inclusion of this campus in demonstrated with the recent to educa- concerned about continuing access versity system, you are education for all Nebraskans. tion, particularly higher share thoughts you might wish to We're hopeful to hear any Pell Grants, student loan program, with us about the guaranteed think they are and to what degree you campus based programs America's college to Nebraska and adequately providing assistance bound people. in that regard, the might want to address, You also, some of you guaranteed student We find that while the matter of indebtedness. also cre. assistance to Americans, it loan program is of significant unintended conse- some which might ha.% ates an indebtedness quences. of Insti- in Title III, the Strengthening You may want to address finally, I institutions. And then tutions, in particular emerging Higher Education Act in structuring the have a particular interest today. deal with the true student in such a way that we change in elsewhere have seen a Institutions in this State and by the name that new student body goes the student body. I guess what that means. of non-traditional. I'm not sure hold to a myth about in the country still We do know that some people, I body in Amerce. They, some the profile of the student people still believe that minority now, but some suppose a great old, male, American campuses is 18 years the average student on business school. white, and in enrolled in a student that, but that's not the average Many students are all of non-traditional and the is what we call teday. The average student reauthorizations, par- the last couple of Congress is, as we have in make have been striving to try to ticularly the one 4 years ago, we mix of students and encourage the new the act respond to, reflect that are on America's campuses. that middle word about the difficulty Finally, I want to say a children, their stu- in sending their income Americans are finding dents to college. college tui- during the past decade seen Middle income folks have income. College tui- fast as their disposable tion rise four times as inflation Dispmable income, counting tion has gone up 60 percent. past 10 years. in, has decreased over the income people are feel squeezed. Middle Middle income people children to farm in order to send their mortgaging the home or the 7 3 college. Middle income folks are tapping their savings accounts and it's one of the reasons why America's saving level is not as high as it ought to be. Some of you may have suggestions as to what this country can do to right the terrible financial imbalance that has creeped into the ability or inability of so many middle income people to send their children, their student on to college. Middle income folks after all are the anchor of America's tax system, but they find themselves excluded from receiving virtually any assistance from the Nation to help their youngsters in college. Well, Congressman Barrett, you brought the subcommittee to, obviously, a fine place and I want your constituents and others in this room to know how impressed you were with me at the airport last night, when I got off the plane, disembs-ked, I think the air- line industry likes to call it deplaned, another word I don't know the meaning of, came in to the airpovt and an old friend of Bill's, a CPA in town, said, well, we know you're here and we're delighted that you and Congressman Barrett are going to be having this hearing out at Kearney State and I immediately corrected him. I said, no, no, the University of Nebraska at Kearney. Bill was so impressed with thatCongressman, I'm delighted to be with you. Mr. BARRETT. Thank you, Mr. Chairman. You follow instructions very well. I want to say to Congressman Pat Williams of Montana, wel- come. A big Corn Husker welcome to this State and incidentally, welcome to the University of Nebraska at Kearney. I'm really pleased to have Congressman Williams here. I'm par- ticularly Pleased to be able to hold a hearing, a congressional hear- ing in the middle of Nebraska. This is a rather unique, unusual circumstance Pnd I think that speaks to the importance of this issue, which is specifically the re- authorization of the Higher Education Act. This is a very important matter to the Congress. We are now in the process of holding a total of 46 hearings across the United States with reference to rewriting the Higher Education Act. This hearing today in Kearney, I believe, is the 35th meeting of this subcommittee. We will begin the torturous process of rewriting the act next month in DC. I'm particularly pleased, also, to be able to welcome the subcom- mittee staff, which we have with us today, who have been brave enough to venture outside the Wavhington Beltway and come out and find out how the other half of the world lives. I was particularly pleaced that our staff, my staff person, took the back road from Grand Island to Kearney last evening so that the members of our subcommittee staff from Detroit and New York were able to listen to the corn grow. It was a unique experience for them, I believe. Today we're here to li i.en to the concerns and the recommenda- tions of these experts in higher education. We have with us today three panels who are, in, aed, experts. These are the people that help administer and spend nearly $20 billion in Federal tax money to administer higher education. I'm especially anxious to hear from rural students as well. And one of our panels today does include testimony from the students. 4 of educa- These people who are coping today with the higher costs tion, among other things. Recently, the Congress passed the High Performance Computer that Act, and I included, as a member of the committee, a request the committee the the General Accounting Office report back to for rural col- the accessibility of high speed computer technology leges and libraries. do re- And I hope that report will help guide the Congrem as we important need for write the authorization bill, in addressing the technolo- colleges, rural colleges, to have access to this type of vital gY. the rui al parts of this I am led to believe that sometimes we in technology as Nation take a backseat to accessibility of this new compared to our more urbanized colleges and universities. the impor- But the people that are here today testifying realize administer the existing tance of all of that, because they do have to these people higher education system on a daily basis and as well, be making. will have to live with the changes that we're going to live with These changes will be ones, we're all going to have to So again, I probably up until or perhaps through the year 2000. about. think it stresses the importance of what we are the Certainly one of the concerns that well have to address are needs, as Chairman Williams says, of the middle income families. lower income We have done a pretty good job, I think, in terms of Congressman families but there is perhaps a void out there and directly Williams has introduced specifically H.R. 2561, which deals with this particular issue. concerned I was with Pat in Montana on Saturday and we were testimony at that with that specific issue and heard some excellent other things, that time. The bill simply includes a provision, among from the would exclude the assets of the families home and or farm stu- calculation of expected family contribution in determining a dent's financial aid. rural areas. It I think this is particularly important to us in eligibility we're somehow doesn't seem fair that in computing the the income looking at not only the value of the farm itself, but also change that is derived from that farm. I think something needs to in that area. working with So, Chairman Williams, I certainly look forward to that provision is and does become a part you and making sure that tremendously important. of the Higher Education Act I think it's loan defaults. As I indicated earlier, I also have a concern about problem. I have This, I think, is becoming an increasingly serious of about a $6 been talking about a $2 billion default rate in terms billion appropriation for loans and grants. high as $3.4 I'm led to believe now that that figure is perhaps as half of our loans in billion. Any time we begin looking at nearly situation and existence being in default we have a terribly serious something needs to be done and needs to be done quickly. for those institu- I'm proud to say that the average default rate 4.5 percent. So we have tions who are testifying here today is about of something to be proud of in this particular area. As a matter that the lowest de- fact, in the limited research that I did, I believe congressional fault rate in terms of the 12 or 13 institutions in my 9 5 district is 2.2 percent. And that happens to be the College of Tech- nical Agriculture over at Curtis. Again, something, I think, that we can be very, very proud of. Mr. Chairman, there are three people who have asked that we insert into the subcommittee's record a statement, if you will please, from the University of Nebraska, Lincoln's College of Engi- neering and Technology concerning Title VIII, and secondly, a statement from Mr. Bob Walker, President of the Rocky Mountain Association of Stu Nni Financial Aid, and finally, from Cheri L. Clark, Director of iinaicial Aid, Capital School of Hair Styling; if that is possible? Chairman WILLIAMS. Without objection, we'll include each of those statements as part of the hearing record. [The statements follow]