Armed with improved data, federal and state officials could do a much better job of ensuring that taxpayer dollars are well spent. Initially, they could track the share of students who graduate in a timely manner and go on to earn a living wage, reducing aid to institutions that failed to meet reasonable thresholds. Ultimately, they should also monitor learning outcomes, to ensure that programs are building human capital rather than merely selling their imprimatur. This must be done carefully: Schools will try to game whatever metrics the government chooses. That said, at least one recognized standard already exists, and academics are working on measures better tailored to specific fields.
This year, Congress is aiming to reauthorize the Higher Education Act, creating a rare opportunity to take action. Many of these proposals on access, cost control and quality have bipartisan support. Some would require new spending. Fully meeting the needs of the poorest students, for example, could cost the federal government almost $40 billion a year, and state governments almost $20 billion. Finding the money may require economies in other areas. But if this investment would help restore the role that higher education once played in the U.S., the price would be well worth it.
This opinion piece was provided by the editors of Bloomberg News.