Career Ready Students: Innovations from Community Colleges and the Private Sector
2025-02-12
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Source: Congress.gov
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Transcript
Okay, good morning. The subcommittee will come to order, and I just want to thank all of our witnesses for being here today and coming to testify before our subcommittee, especially on the topic of career preparation and the importance of maximizing student employment and earnings potential. I look forward to hearing from each of you from your different perspective as to what you have identified that works for students, and what we should bear in mind as we evaluate the programs in the subcommittee's jurisdiction. In education, whether it be a two-year, whether it be a four-year, whether it be other credentials, it's likely to be one of the most large or one of the largest investments an individual will make in their entire lifetime. In fact, it's an investment in themselves, and it's an investment in their future. Students rightfully expect to get a good return on their investment by moving up the economic ladder, finding a job in their chosen industry, and being able to provide for themselves and also to provide for their families. It's no secret that college costs can be high. As I mentioned, many of us have experienced this in our own families. And each year, the federal government provides more than $100 billion in grants and loans to help students pay for college. The Congressional Budget Office, CBO, projected that the federal government would issue about $90 billion in new student loans for 2025 alone, with roughly half going to undergraduates or parents of undergraduates. and the other half go into graduate students. In total, 43 million borrowers currently have a total of $1.6 trillion. Yeah, $1.6 trillion in outstanding federal student loans. About half of these borrowers owe less than $20,000. About three-quarters owe less than $40,000.
And these amounts are probably surprising to some because it's far below what sometimes is featured in the mainstream media. Financing higher education, both for the federal government and the individual, is a significant investment. Bars expected to be worth it on the other side of graduation with expanded job opportunities and also with higher pay. That is only one side of the equation. Taxpayers also deserve to know that their money has been well spent. For 2025, Congressional Budget Office, the CBO, expects the government to lose 18 cents for every dollar it lends in 2025. In the recent era of higher inflation, which is brought on by a lot of unnecessary federal spending, students would benefit even more from cost-effective ways to obtain the knowledge and skills needed to advance in the labor market. College can and does translate into financial benefits that make their time and their money well worth it, but for too many, it is not a universal experience. And for many, completing a degree is a very big hurdle. According to the National Student Clearinghouse Research Center, the overall six year graduation rate in 2024 was about 61%. What means nearly two in five students who enrolled in 2018 did not finish within six years. And by eight years, the completion rate was only a few percentages higher. So I think you would agree that these rates are unacceptable, and we can and should be doing better for our students. Right now, there are 8 million jobs unfilled in the country. However, that is just with 7 million unemployed individuals looking for work. While labor force participation among people in their prime working years has rebounded, overall participation still lags pre-pandemic levels, and even then, participation had generally been trending lower than just a decade or two earlier.
Small businesses regularly report difficulty finding qualified applicants for available jobs, and there are concerns about shortages in key industries such as manufacturing, especially if I mismatch between the in-demand jobs and workers with the necessary skills persist. Thankfully, there are innovative leaders focused on student outcomes, and I'm pleased that we'll be able to hear from some of those leaders today about what they have found in working for students, including the perspective of private industry and community colleges. I think many of us have heard from businesses in each of our districts about the need for skilled workers and high-demand fields, whether that be healthcare, whether it be manufacturing or construction trades. Employers have a strong pulse on the current and the future workforce needs, and we will hear today from a company about programs that have developed to educate students and develop talent. I'd also like to highlight that we will hear from a community a college that is in the district that I represent, Wallace State Community College, and it serves students from a variety of backgrounds and goals. Some seek a certificate, others an associate's degree, and still others plan to transfer to four-year institutions. Some are currently in high school where they have a dual enrollment, while others are right out of high school. Others are older, and some are trying to change careers and have families and work responsibilities as well. And I look forward to hearing about the continued success of this school, Wallace State Community College, and how it is focused on improving students' outcomes, including retention, completion, earnings, and employment opportunities. Before I turn to the ranking member, Ms. DeLauro, for her remarks, I will introduce our panel of witnesses so that when we conclude, you can go ahead and begin.
First, we have Mr. Preston Cooper, who is a senior fellow at the American Enterprise Institute. Welcome. Good to have you here. His research focuses on the return on investment of different types of higher education. Next, we will hear from Dr. Vicki Carlwix, president of Wallace State Community College in Hansel that I referred to as earlier.
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