News from NAICU

President Joe Biden's ten-year, $1.8 trillion American Families Plan proposes major investments in higher education among an expansion of federally-funded social programs. In all, the American Families Plan includes $1.8 trillion in investments and tax credits for American families and children over ten years. 

The following is a statement on the plan from NAICU President Barbara Mistick, D.M.

"We appreciate the significant investment in students President Biden has proposed in his American Families Plan.  We are particularly appreciative of two significant aspects for private, nonprofit colleges: the proposed down payment of $1,400 toward doubling the Pell Grant maximum and the support shown for under-resourced institutions."

"We encourage the president and Congress to double the Pell Grant by the program’s 50th Anniversary on June 23, 2022.  Pell Grants have proven to be both successful in opening the doors of college and opportunity, and a highly effective and equitable investment in college affordability. Increasing the Pell Grant is the single most important step Congress can take to make college possible for low-income and first-generation college students. The time has come to double the Pell Grant. And with low-income students struggling in the wake of the COVID pandemic, the urgency of doubling Pell is clear. Pell Grants are the fairest and most efficient way to get education funding to those who need it most."

"Approximately 38 percent of students attending private, nonprofit colleges and universities are Pell eligible (roughly the same percentage as public four-year colleges). Expanding the Pell Grant is essential to our nation’s most vulnerable students having equal access to the same array of postsecondary educational opportunities as others do and to sustaining the viability of the communities served by private, nonprofit colleges. Expanding the grant could also ensure that more working class families are served through the program, although providing the greatest amount of federal grant aid to those with the greatest unmet need should remain the top priority."

"Private, nonprofit colleges and universities are an important sector of the American higher education landscape and serve students from all income, geographic, ethnic and racial backgrounds.  Nearly 340 private, nonprofit colleges are currently eligible for the federal HBCU and MSI programs, and private, nonprofit colleges and universities are the fastest growing segment of the HSI community. The investment for HBCUs and MSIs proposed in the America’s Families Plan is a step in the right direction for the equitable treatment of private, nonprofit colleges in federal programs and also for the students they serve."

"We look forward to working with President Biden and Congress on college affordability solutions and to double the Pell Grant to ensure students of all backgrounds will be able to attend the college of their choice."

Private, nonprofit colleges and universities play significant roles in the everyday lives of those living and working in college communities and are important contributors to the nation as a whole. In fact, America’s private, nonprofit colleges and universities are a vital economic engine to the nation, generating $591.5 billion in economic impact in 2018-19, according to the findings of a new report released Wednesday by the National Association of Independent Colleges and Universities (NAICU).
 
The report, Private, Nonprofit Higher Education: Shaping Lives and Anchoring Communities tells the story of the economic, social and cultural vitality that private, nonprofit colleges and universities add to communities, regions and the nation.  It also demonstrates how America’s private, nonprofit colleges and universities are in a unique position to not only help but lead the acceleration of post-pandemic economic progress so desperately needed across the nation.
 
The study, conducted by Parker Philips, Inc., a nationally recognized consulting firm specializing in economic impact analysis, also found private, nonprofit colleges and universities:
 

• Directly employ more than 1.1 million people as part of day-to-day operations and support and sustain a combined total of 3.4 million full-time and part-time jobs.
• Generate a total of $77.6 billion in local, state, and federal tax revenue annually as a result of operations, student spending, and visitor spending.
• Account for $2.8 billion in combined charitable giving and volunteerism.  It is estimated that staff, faculty and students of private, nonprofit colleges and universities give more than $747.5 million annually in charitable donations and volunteer for 86.8 million hours, valued at another $2 billion.

“It is indisputable that America is better off because of the economic opportunity, cultural enrichment and societal impacts of private, nonprofit colleges and universities,” said Barbara K. Mistick, D.M., president of NAICU. “This critical sector of America’s economy is a springboard for leading our nation most rapidly and effectively to renewed vitality, as we leave behind the pain and challenges of the COVID-19 pandemic and embrace the new beginnings of a vigorous and fulfilling future.”
 
The report found that over the course of their 40-year careers, the 584,000 bachelor’s degree recipients at private, nonprofit colleges and universities in 2019 will earn $3.1 trillion, support and sustain a cumulative total of 17.4 million jobs, and generate $382 billion in tax revenue at the local, state, and federal levels.
 
“Private, nonprofit higher education is a partnership between students and alumni, faculty and staff, donors and trustees, neighborhoods and local businesses, to build a stronger community - and a shared culture,” said Mistick.  “It is clear that investing in private, nonprofit higher education pays both short- and long-term dividends for all Americans and is a lynchpin in shaping a brighter future for our nation and the world.”
 
An integral part of the nation’s 5,300-instituton higher education ecosystem, America’s 1,700 private, nonprofit colleges and universities:

• Graduate more than a million students annually.
• Enroll nearly 21% of students, which represents over five million students.
• Confer nearly 30% of undergraduate degrees and 45% of both master’s and doctoral degrees.
• Account for $71.7 billion in total research expenditures, resulting in an economic impact of $193.6 billion, supporting and sustaining 907,811 jobs, and generating $21.7 billion in local, state, and federal taxes.

“America is a nation of college towns,” said Mistick.  “Rural, suburban and urban communities throughout the country benefit from the volunteer and philanthropic spirit embodied at many private, nonprofit colleges and universities. This spirit of giving back is rooted in the founding missions of private, nonprofit colleges and universities.”
 
Private, nonprofit colleges are changing outcomes for students of all incomes and backgrounds – enrolling roughly the same percentage of Pell Grant recipients (38%) as do public institutions (40%).  Private institutions also enroll similar percentages of students from underrepresented groups, and by gender and age as public institutions. Earning a bachelor’s degree boosts the median salary of an individual by 67.3% from a high school diploma.
 
“The $591.5 billion impact of private, nonprofit higher education on the U.S. economy tells only a fraction of the story regarding how this sector is transforming individual lives and communities across the country,” said Nichole Parker, president of Parker Philips. “The diversity of individual colleges and universities and their students help build community economic strength.”
 
The full economic impact report is available at https://naicu.edu/ImpactSurvey2021.pdf

Today, NAICU joined nearly 1,200 organizations, colleges and universities in calling on Congress to double the Pell Grant maximum award. Below is a statement from NAICU President Barbara K. Mistick, D.M.

“Doubling the Pell Grant maximum award is one of NAICU’s top policy priorities. I am pleased today that NAICU has joined with more than 300 organizations and nearly 900 individual colleges and universities to urge Congress to bring an affordable, high-quality college education within reach for all students by doubling the Pell Grant maximum award.

“Currently, there are more than 1.1 million students at private, nonprofit colleges and universities who receive Pell Grants each year.  This support provides nearly $5 billion to help them attend and complete college.

“This call to double the Pell Grant is the single most important step Congress can take to make college more accessible for low-income and first generation students. The goal to double Pell, described as “long overdue” in the letter, clearly has the backing of the higher education community, as evidenced by the support demonstrated in today’s letter.

“This important investment will drive economic recovery, help address racial and economic inequities in college completion rates, and increase overall educational attainment. Doubling the Pell Grant maximum award is something Congress can agree to on a bipartisan basis as a fast and effective way to bolster opportunity for millions of students.

“We look forward to working with members of the House and Senate from both parties and the Biden Administration to enact this important public policy initiative.”

Today, the House of Representatives approved the $1.9 trillion American Rescue Plan, which will now go to President Biden for his signature. The president is expected to formally sign the bill later this week.  The legislation includes nearly $40 billion for higher education.
 
The following is a statement from NAICU President Barbara Mistick, D.M.
 
“Today marks another important milestone in our nation’s efforts to overcome the significant challenges posed by the COVID-19 pandemic.  All Americans and all sectors of the American economy have been affected by this crisis. 
 
“The approval of this legislation in the House of Representatives, which includes $40 billion for higher education, brings much needed relief to college students and their families.  It also provides important resources to colleges and universities to help those institutions to remain open, safely and effectively educate their students, and ensure the health and safety of their campus communities.
 
“On behalf of the 1,700 private, nonprofit colleges and universities, we are appreciative to have been included in the American Rescue Plan, as well as the two previous relief packages passed last year.  However, while this support is significant, it does not signal the end of the crisis nor does it cover the $183 billion in losses the Association of Governing Boards reports the higher education sector has suffered as a result of the pandemic.
 
“Colleges and universities have been – and will continue – playing a leading role in helping their communities overcome the challenges posed by the pandemic.  We look forward to our continued work with both parties in Congress and the Biden Administration to ensure that we emerge from this crisis as strong and vibrant as ever.”

Today, the U.S. Senate voted to confirm Miguel Cardona, Connecticut’s education commissioner, to be the next Secretary of Education. With strong bipartisan support, the Senate reinforced its commitment to education at all levels.  NAICU President Barbara Mistick, D.M. released the following statement:
 
“As a former elementary school teacher, principal, and now the education commissioner for the state of Connecticut, new Education Secretary Miguel Cardona has seen the transformative effect education can have on students, families, and communities.
 
“Our Connecticut member presidents speak very highly of the work Secretary Cardona has led in the state on college access and success.  They also point to his leadership throughout the COVID-19 pandemic in working to safely re-open schools.
 
“Education can be the great equalizer.  But we must ensure that students have the access they need to be successful, graduate and, eventually, move up the economic ladder.  We look forward to working with Secretary Cardona on issues such as the recovery for our students, their families and our institutions of higher education from the pandemic, college access and success for low-income and first generation students, strengthening federal financial aid, appropriate accountability, and the importance of the diversity of American higher education (among many other pressing issues). 
 
“We also look forward to working together to help ensure that colleges and universities have the tools and resources to safely keep campuses open full time and that students, faculty, and staff have the resources, including mental health resources, to continue their efforts.
 
“There will be challenges and difficult conversations ahead for all who are involved in education.  Secretary Cardona’s lifetime commitment to education will serve our students and institutions well during his tenure.
 
“While his career has been spent at the secondary education levels, Secretary Cardona and the Administration have assembled an excellent higher education team.  James Kvaal’s nomination as Undersecretary of Education and Michelle Asha Cooper’s appointment as deputy assistant secretary, Office of Postsecondary Education are sound choices who will both be strong advocates for higher education.  Both have a deep background in higher education policy that they will bring to the Education Department. We have worked with both James and Michelle in their previous positions and look forward to engaging with them again as they settle in to their new positions.”