"The Future of College: Harnessing Innovation to Improve Outcomes and Lower Costs"

Committee on Economic and Educational Opportunities

2025-11-18

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Source: Congress.gov

Summary

The Committee on Education and Workforce met to discuss innovation in higher education, focusing on expanding opportunities, improving student outcomes, and making college more affordable. Speakers highlighted the urgent need for new approaches to address challenges such as rising costs, low completion rates, and the evolving demands of the workforce .

Themes

Cost and Affordability in Higher Education

The rising cost of college and increasing student debt were central concerns, with speakers noting that the traditional business model for higher education is broken . Innovative solutions proposed included course sharing models, which aim to dramatically reduce institutional expenses by sharing faculty and curriculum across multiple campuses . For instance, Adrian College reported saving over $2 million by implementing such a model and projects further tuition reductions . Another approach involved designing college programs with tuition set below the maximum Pell Grant award, allowing low-income students to attend debt-free . Discussions also touched on how federal policies, such as loan programs, might inadvertently contribute to tuition increases [ 01:42:14 ]

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.

Innovation and Technology, Especially AI

Technology, particularly Artificial Intelligence (AI), was presented as a key driver for innovation in learning and operations . Online and hybrid classes are increasing accessibility for diverse student populations, including working adults and veterans . The Mississippi Artificial Intelligence Network (MAIN) was cited as a statewide initiative using AI to make learning more affordable, accessible, and aligned with workforce demands by providing free online curriculum and stackable micro-credentials . Concerns were raised about AI bias, data privacy, and the need for human oversight and digital literacy among students and faculty .

Student Outcomes and Support

Speakers highlighted low degree completion rates, particularly among non-traditional students, with millions attending college but leaving without a credential . The discussion emphasized the critical role of comprehensive wraparound support services, including financial aid, academic advising, and addressing basic needs like food, housing, and mental health [ 00:14:29 ]

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. Programs like CUNY ASAP and emergency grants were presented as effective models for improving retention and graduation rates . Dual enrollment and early college programs were also championed for their ability to reduce costs and increase the likelihood of college completion for high school students .

Role of Government and Policy

There was significant debate regarding the role of government policy in higher education. Several members and witnesses expressed strong concerns about the Trump administration's actions, including proposed cuts to Pell Grants, the elimination of grad plus loans, and the dismantling of the Department of Education's Institute of Education Sciences (IES) . These policies were characterized as detrimental to student access and the ability to make evidence-based decisions . Calls were made for continued federal investment in student success programs like the Postsecondary Student Success Grant (PSSG) and for policies that incentivize collaboration and cost reduction in institutions .

Workforce Readiness and Industry Alignment

A persistent gap exists between educators' perceptions of student readiness and the realities faced by recent graduates and employers . There was a consensus on the need for higher education programs to align closely with workforce demands and to equip students with skills relevant to modern industries, including AI and other technologies . Collaborations between colleges and businesses were highlighted as crucial for developing current and future-focused curricula . The value of liberal arts degrees in fostering lifelong learning and adaptability was also affirmed .

Tone of the Meeting

The meeting reflected a mix of urgency, optimism, and partisan division. Many speakers expressed deep concern over the affordability crisis and student outcomes in higher education . However, there was also significant optimism regarding the potential of innovative models and technology, particularly AI, to address these challenges through collaboration and efficiency . Bipartisan agreement was noted on the importance of certain programs like dual enrollment [ 01:02:55 ]

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, but sharp disagreements emerged concerning federal funding cuts and the overall policy direction of the administration . The discussion frequently called for greater accountability from institutions to ensure value for money and effective student success .

Participants

Transcript

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come to order a quorum is present the committee meets today pursuant to notice and without objection the chair may recess the committee at any point i don't want to do that let me be honest with you i'm glad to see you all back i missed you all and i would hope that at this point that this committee which i think is the   truthfully the most vitally needed committee in all of Congress when we talk about education workforce, that we can come together and remind ourselves that the past, whether it be the past seven weeks or what, is the past, and now we can get back to the work of the people that they've called us to do.  So I'm delighted to see you all and hope this will be a great and positive hearing where we've had some negative hearings,   by right of what we need to do in this committee, there's always a good opportunity to have positive hearings looking at innovation in the space that we are most concerned with.  Good morning and welcome to today's Committee on Education Workforce Hearing.  I want to thank our witnesses for joining us as we examine how innovation in higher education can expand opportunity, improve student outcomes, and make college more affordable.   The need for innovation is clear across our higher education system only about 61% of first time students earn a degree within six years, not four years.  And completion rates are even lower for non traditional and part time learners as result nearly 42 million Americans have attended college but left without earning a credential.   This some college, no credential population underscores a critical gap in our education system.  Too many students invest time and money and effort in higher education without ever seeing the return they deserve.
At the same time, a divide persists between how educators and graduates view workforce readiness.  Nearly nine in 10 educators believe their students are ready for the workplace, yet only half of recent graduates feel prepared for entry-level roles, and just one in three believe their education is worth the cost and their employers feel the same way.   Meanwhile, the profile of a typical college student has changed.  Today, most students are non-traditional, working adults, parents, caregivers, and veterans, whose needs and schedules look very different from an 18-year-old living on campus.   College also faced demographic and economic challenges.  A looming enrollment cliff is projected to shrink the pool of new high school graduates entering college by about 13% between 2025 and 2041.  And more young Americans are opting out of college altogether.   Just 62.8% of 2024 high school graduates enrolled in college immediately after graduation, down four percentage points from 2019.  These realities demand new technologies, new models, and new mindset to ensure higher education truly meets the needs of students and families.  Fortunately, innovation is not a distant goal.   It's happening right now, reshaping how students access, afford, and complete college.  Artificial intelligence, or AI, for example, is transforming learning and operations.  Students and faculty are using AI to brainstorm ideas, tutor, design coursework, and streamline feedback.  Institutions are automating administrative workflows to reduce costs and improve service.
High quality online and hybrid classes are making college more accessible for working adults, parents, and veterans who need flexibility.  Colleges are collaborating through course sharing partnerships, ensuring students can take required courses from another college, even if they're not offered at their home institution.  Partnerships between colleges and job creators are also driving innovation.   ensuring programs align with workforce needs, and preparing students for the jobs of tomorrow and today.  The Trump administration is helping accelerate this progress by prioritizing AI literacy and directing competitive grants toward AI implementation in higher education, reflecting a commitment to modernizing our higher education system and ensuring innovation leads to real results for learners.   Today's panel represents that commitment.  We are joined by leaders from across the higher education landscape who are driving innovation and helping shape the future of learning.  I look forward to their testimony and to today's important discussion.  And so with that, I now yield to my friend from Virginia, the ranking member, Mr. Scott.
Thank you, Mr. Chairman.   Welcome back.  Good to see you.  It's been quite a while since we've seen Republicans in town.  Democrats came back a couple of times just to see if we could entice you back.
I was back and I saw you here.
Okay, well, it was good to see you then, but it's good to be back and back at work.  Innovation in higher education is crucial if we want to ensure that all Americans can access   and graduate from college.  Practices such as offering flexible learning options, leveraging digital tools, providing student services, and financial support can improve students' college experience and completion.  But not all innovations make a difference.  Some even come at the expense of student outcomes or equity.  And our core responsibility as federal policymakers is to make sure that every student can succeed regardless of background.   Unfortunately, the Trump administration and my Republican colleagues are intent upon undoing the progress we've made.   That so-called big ugly law is a prime example.

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