Association for Public Policy Analysis & Management

The federal government of the United States of America’s role in higher education has been in a state of crisis for at least the last decade. Student loan debt is currently more than one trillion dollars in the United States, with the average college graduate graduating with at least $29,000 in debt. Total student debt and the number of continuous federal loans offered to students continuously grows each year. Moreover, the likelihood that students will repay these debts is projected to decrease.

The purpose of this research paper is to clearly define and establish the federal government’s role in higher education. Clear expectations and guidelines of the federal government’s role in higher education should drive down the institutional cost. Reducing the cost of higher education is critical. Given the new Donald J. Trump presidential administration the research of this paper will provide guidance to the U.S. Department of Education. This proposal includes an analytical model measuring where the money to fund higher education comes from, which includes student loans, taxes, and government subsidies. The model also measures patterns and trends in higher education costs such as housing, food, transportation, and faculty retention costs. This analysis determines the impact that federal levers have on the cost of education.  The research paper examines current legislation, regulations, as well as federal and state budgets in order to create sustainable goals for the United States of America.