Roundup: Week of January 7 – January 11

New York Unveils Ambitious Plan to Boost Prestige of Public Colleges

New York needs to significantly increase spending on its state college systems and hire thousands of new professors if it hopes to compete with other prestigious public universities, according to a report released in December by the State Commission on Higher Education. Commissioned by Democratic Governor Eliot Spitzer, the report recommends creating a $3 billion research fund and hiring an additional 2,000 full-time professors to put the State University of New York and the City University of New York systems on par with institutions such as the University of Michigan or the University of California at Berkeley. In addition, the report recommends that colleges be given more flexibility to raise their tuition. Spitzer endorsed some of the reports recommendations during his State of the State speech on Wednesday, and announced plans to create a Higher Education Endowment of at least $4 billion funded through lottery funds to help pay for the recommendations. Spitzer, however, said there would not be an increase in state tuition levels, which have remained stagnant since 2003.

Questions Abound on TEACH Grants

Back in October we had a number of questions (and some concerns) about TEACH Grants, a well-intentioned new program that awards $4,000 a year to high-achieving students who promise to teach in high-need schools. While our concerns largely focused on how effective the program would be in incentivizing behavior, education lobbyists recently expressed concern that the grants may force students to make career decisions at too early an age and could turn into unsubsidized loans due to uncontrollable circumstances. During a federal meeting called by the Department of Education on Tuesday to set rules for the program, lobbyists complained about provisions that would convert the grants into loans if students do not pursue a career in teaching–despite the fact that other loan assistance plans, such as SMART Grants and loan forgiveness, are also linked to careers. Congressional aides also noted that the service requirement will serve as an accountability measure to ensure that the program actually helps teachers. Despite the objections, the program seems to be popular with students–the The Chronicle of Higher Education reported that an estimated 30,000 aid applicants indicated an interest in TEACH Grants on their aid applications.

Arizona Denies In-State Tuition to 3,850 Students Who Failed to Prove Residency Status

Almost 4,000 students at public colleges in Arizona lost their in-state tuition status following their failure to prove their citizenship, the Arizona Republic reported Wednesday. The 3,850 denials are the result of Proposition 300, a ballot measure approved over a year ago that says students cannot receive state aid or tuition rates unless they can prove they are legal Arizona residents. While the measure does not ban students from attending Arizona schools, it makes attending far more expensive. For example, at the University of Arizona, the $16,282 out-of-state tuition is 323 percent higher than the $5,048 in-state rate. Schools, however, have yet to determine what negative effects the policy has had on enrollment.