Reed Fights for Students, Working Families
Tom Reed continued his fight for college students and working families by unveiling a comprehensive proposal aimed at reducing college costs. “We care about the working families and college students that are struggling keep up with the rising cost of education,” said Reed. “It’s only right that we work together to get these costs in check, which is why we brought together our Vision for Students. We must use all available tools to make sure college is affordable and accessible. That’s why our proposal forces colleges to be transparent about how they are spending tuition dollars.”
The Vision for Students is a comprehensive plan that focuses on innovative solutions to encourage transparency and accountability at colleges, which will bring overall costs down.
The plan includes Reed’s REDUCE Act which, requires schools with endowments larger than $1 billion dollars to use returns on those endowments for direct tuition relief for middle and working class families or risk hefty tax penalties.
In addition, the proposal requires colleges to submit plans to keep costs below the rate of inflation. Should colleges fail to comply with these plans, they could see reductions in certain federal aid programs. That funding would then be redirected to schools that perform well and keep costs low.
“This is about making colleges compete in the market place. We have to expose them to market forces and stop insulating them with endless taxpayer funding at the expense of students and their families,” said Reed.
Lastly, the proposal requires colleges to disclose administrator salary information and total compensation, including extravagant benefits packages that include housing expenses, vehicles and membership fees to elite social clubs, for all college employees. That information will be disclosed on the individual college’s website in a searchable format.
“Our proposal will force colleges to put students first and disclose information that will show families just how tuition dollars are being used, cutting through the smoke and mirrors. As tuition goes up, so does the debt for those that can afford it least. In turn, that debt is crippling a generation of kids and it’s just not fair. This proposal will help bring innovative solutions needed to get this problem under control,” Reed concluded.