Students who complete their degrees experience better long-run outcomes. College graduates are more likely to be employed, have good-paying jobs, and pay back their student loans on time and successfully.
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But increasing college costs deter some would-be students from pursuing a college education. Over the past seven years the Obama Administration has advanced the dialogue about college to include increased access and completion. And for student loan borrowers, their ability to repay their loans depends more strongly on whether they complete their program of study than how much total debt they take on.
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Because college remains the greatest driver of socioeconomic mobility in America, we must do more to ensure students from all backgrounds can access high-quality programs, are well-supported throughout their studies, and successfully complete their degrees. Better alignment of existing federal resources can make a substantial difference for college access and completion.
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These efforts will help break down critical barriers many Americans face in accessing the knowledge and skills needed to get a well-paying job, support their families, and contribute to the community. Through the following critical actions, the new guidance will support the growing number of colleges and universities in their efforts to expand college opportunity:.
One study shows that coordinating available public federal benefits for students can help close the gap on unmet financial need, support students' college completion, and lead to success in the workforce. Colleges each developed strategies that were relevant to their own students' and community's needs, through activities that included improving referrals based on financial need, strengthening existing centers like Single Stop, and integrating registration and support as part of regular financial aid, academic, and career advising practices.
In this time of state disinvestment in higher education, it's vital that all parties—institutions, states, and the federal government—take responsibility for delivering strong outcomes for our nations and ensure that all students complete college. The Obama Administration has called for significant new investments in the federal Pell Grant program, as well as two- and four-year institutions.
Additionally, the Department has worked to protect students and taxpayers, including through its landmark Gainful Employment regulations that will stop the flow of federal dollars to poor-performing career college programs; strengthened state authorization requirements; defined the credit hour; ensured students are protected from bad-actor institutions and that financially risky institutions are held accountable; through the newly published borrower defense rule; and increased rigor in accreditation processes.
The President's fiscal year budget proposal includes several reforms that would promote college completion, particularly for low-income students, including:. Definitions and Sources: State: The state in which the institution is reported to be located, including for distance and online education schools.
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The FY rates were calculated using the cohort of borrowers who entered repayment on their federal student loans between October 1, and September 30, and who defaulted before September 30, Includes both public and private institutions. Source: College Scorecard Predominant four-year degree: Most common degree awarded by institution.
See College Scorecard documentation for details. Sector: Control of institution. Source: College Scorecard. The FY rates were calculated using the cohort of borrowers who entered repayment on their federal student loans between October 1 and September 30 the next year and who defaulted before September 30 three years later.
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Washington, DC: U. Department of Education.
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C: Institute for Women's Policy Research. This finding is consistent with numerous other multi-variate statistical analysis of student loan defaulters over the past 20 years, including: Gross, Jacob P. November Some of the causes of slow student progress, the report said, are inability to register for required courses, credits lost in transfer and remediation sequences that do not work.
The report also said some students take too few credits per semester to finish on time. The problem is even worse at community colleges, where 5 percent of full-time students earned an associate degree within two years, and Each year, the report said, 1. Tuition borrowers who do not graduate on time take on far more debt in their extra years, the report found.