The Road Ahead

We can all be proud of our colleges and universities. They are preparing more of our youth from more diverse backgrounds for a more challenging future than ever before. Two-thirds of our high school graduates are immediately enrolling in college and trade school, the most ever. And workers with a bachelor’s degree earn 50 to 100 percent more than do their peers with only a high school diploma.

Yet as we enter the 21st century, we face new challenges. We must redouble our efforts to help all students who enter college or trade school earn their degrees and certificates. More than one-third of students who enter college or trade school drop out before they earn a certificate or degree.^[31] The problem is particularly acute among minorities: 29 to 31 percent of African Americans and Hispanics drop out of college in their first year, compared to 18 percent of whites.

In his Fiscal Year 2001 budget, President Clinton proposed new critical investments in higher education, training, and youth opportunities as part of his New Opportunity Agenda:

• The College Opportunity Tax Cut to allow families to save up to $2,800 by deducting $10,000 in college tuition from their taxes. Investments in human capital deserve the same favorable tax treatment as those in equipment. The College Opportunity Tax Cut would save American families $30 billion over the next 10 years.
• More student aid, including a $716 million investment in Pell Grants to increase the maximum grant to $3,500, and substantial increases for Supplemental Educational Opportunity Grants and Federal Work-Study.
• A $325 million investment in GEAR UP, a $125 million increase, to mentor 1.4 million disadvantaged students on their way to college, and an $80 million increase for the TRIO programs for low-income and first-generation college students.
• College Completion Challenge grants to reduce college drop out rates through increased scholarship aid and pre-freshman summer "bridge" programs.
• The Dual Degree initiative to increase opportunities for minority students to earn advanced degrees.
• Critical investments in elementary and secondary education. The President asked Congress to reduce class sizes in the early grades, modernize our school facilities, provide high-quality after-school and summer school learning opportunities, and invest in quality teachers. All students ought to be held to high academic expectations.
• Increase economic opportunities for disadvantaged youth. The President’s budget would increase our investment in Youth Opportunity Grants from $250 million to $375 million, serving 25,000 more youth in high-poverty areas. The budget would provide funds to employ 3,330 young high school drop-outs to build houses through YouthBuild, increasing employment skills and creating housing for low-income and homeless families. Finally, the President asked Congress to increase our investment in Job Corps—the nation’s largest and most comprehensive residential education and job training program for impoverished young people—to nearly $1.4 billion.

Over the past seven years, President Clinton and Vice President Gore have implemented an unprecedented array of initiatives to expand college opportunities. The new Hope Scholarship and Lifetime Learning tax credits provide $3.5 billion in tax relief for college. The Direct Student Loan program has saved students and taxpayers a total of $15 billion. Student loans are cheaper and can be repaid based on the ability to pay.

AmeriCorps has given over 150,000 young people the chance to earn their way through college by serving their country and their communities. The GEAR UP initiative is raising college aspirations for 450,000 at-risk teenagers. And more needy students receive larger Pell Grants scholarships.

We have made great progress toward enabling all of our citizens to achieve the American Dream. All Americans deserve a chance at the economic opportunity, cultural enrichment, and civic engagement that result from higher education. By building upon our investment in education, we can ensure the future prosperity of our nation.

[Trends in Higher Education]

[Appendix]