A historic opportunity for higher education reform

Once a sleepy policy area on the national scale, higher education is now a central issue making headlines in the overall political discourse.

Believe it or not, the education policy divides between mainstream Democrats and Republicans used to be trivial. For example, 10 years ago, Sen. Elizabeth Warren’s (D-Mass.) proposal to lower student loan interest rates to 3.9 percent seemed radical. It was the sort of thing that fueled angst among observers on the right, and failed to generate consensus support on the left.

When Mitt Romney ran against then-President Obama in 2012, both pledged to maintain funding for Pell Grants to support access to higher education, with few other substantial differences in their platforms. The range of arguments considered acceptable in mainstream debate, sometimes called the Overton window, was quite narrow.

Given this broad agreement, it should have been easy for lawmakers to maintain higher education policy through periodic comprehensive reform. But that isn’t what happened. Despite similar concerns about higher education across both parties, little progress has been made over the last two decades. The main reason? Higher education reform wasn’t a priority for voters and, by extension, lawmakers.

Things have obviously changed. Years of incremental sub-legislative policy changes have left our system broken. Higher education reform is now a central priority for voters and lawmakers alike.

The 2019 Democratic primary was the first time mainstream candidates made big promises regarding higher education — specifically in the form of broad student loan cancellation. This was initially seen as shifting the Overton window toward liberal ideals. Yet, with President Trump’s reelection, new and bold ideas from the right have also entered the mainstream.

For instance, Trump’s campaign promise to abolish the federal Department of Education — a longstanding goal of conservative Republicans — is now being taken seriously in the mainstream discourse.

What we are witnessing is not just a shift but a widening of the Overton window. This creates a remarkable political moment, with a powerful combination of ambition for change and the opportunity for lawmakers to consider a wide range of ideas. It’s a moment ripe for bipartisan solutions that could truly improve higher education.

But with Republican majorities in both houses of Congress, we’re unlikely to see that sort of cooperation. Instead, Republican lawmakers are poised to attempt change through the budget reconciliation process, which is now underway.

While a traditional legislative or even bipartisan solution would be more satisfying, comprehensive higher education reform has eluded Congress for 17 years. Americans are demanding reforms, but that’s not the only factor motivating Republicans to act. Addressing some of the most glaring problems with Title IV funding programs (student loans and grant aid) would save taxpayers money — lots of it. That, in turn, could free up funds for other Republican priorities, such as tax cuts promised by Trump.

While Democratic lawmakers are unlikely to support the Republican-led reforms that come through reconciliation, it is important to note that many of the ideas being discussed aren’t all that radical. They resemble proposals floated by Democrats in very recent history.

I expect forthcoming reforms to demand more of colleges when it comes to delivering good financial outcomes for their students after graduation, often described as “risk-sharing.” Democrats and Republicans may differ on the exact details, but they have long been engaged in discussions about this sort of reform.

Several years ago, I — a moderate conservative and former Bush White House staffer — partnered with Ben Miller, a liberal policy expert later appointed by President Biden, to spearhead an effort to explore how risk-sharing could be implemented. We brought together research and policy experts from across the political spectrum, and although they disagreed on the specifics, they all agreed on the need for action.

The changes we may soon see aren’t inherently partisan or radical. These are all ideas we agreed on not long ago, when the Overton window was narrow and voters weren’t pressuring lawmakers for reform.

As a long-time observer of higher education policy, I can’t overstate the importance of this moment. I hope the alignment of political opportunity and public interest will spur lawmakers to drive the reforms a decade in the making. If lawmakers succeed, it may not make the front-page news, but it could bring normalcy and function back into higher education, helping it once again serve as a vehicle for social mobility for all Americans.

Beth Akers, Ph.D., is a resident fellow at the American Enterprise Institute and former staff economist with the Council of Economic Advisers during the George W. Bush administration. Follow her on Twitter @DrBethAkers.

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