Aid must match soaring tuitions

This is the second of two editorials on rising tuition.

College tuition and student loan debt are rising. Tight credit is squeezing low-income families, and some middle-income ones are tapping retirement accounts to cover their expenses.

The higher education crisis is complex and its solution will require the continuing commitment of state and federal leaders and individual institutions.

At the state level, Gov. Tim Kaine and lawmakers made admirable progress this year. A $1.5 billion bond package will help address increased demand for doctors, nurses and other professionals at colleges where those programs are now maxed out.

A $17.5 million incentive fund assembled by Republican delegates this year shows promise. Colleges that keep tuition increases at 4 percent and boost financial aid are eligible for a share of the money.

The program has been criticized because the amounts are too modest to attract participation from big universities, but universities with fewer resources like Old Dominion and Norfolk State will receive larger sums as a result, helping to counter the many disadvantages those institutions face.

The main shortcoming with the incentives is the absence of a guarantee that they will last more than two years.

Still more could be done to help hard-pressed families.

First, lawmakers could set goals so that the full cost of an education does not lean so heavily on tuition.

Second, the state should encourage its community colleges to overcome their reluctance to federally guaranteed student loans. A quarter of the state's community college students do not have such access. This has taken on new urgency because so many high school graduates are starting at community colleges, where the tuition is so much lower.

At the federal level, Congress has wisely offered guarantees to banks that make student loans. In addition, it caps payments on federal student loans, in most cases at less than 10 percent of the borrower's income.

The U.S. House of Representatives has endorsed a measure that would require colleges with substantial tuition increases to explain the need for the hike and to report what percentage of their endowments are dedicated to financial aid. While universities cringe at such scrutiny, students have a right to know whether they are being asked to fund a fancy gymnasium with a climbing wall or recruitment incentives for top-quality faculty.

Congress should also simplify the application process for federal grants and require colleges to disclose likely debt obligations to incoming students. New tuition tax credits are popular with presidential candidates this year and are worthy of consideration.

More controversial is a proposal mandating that a set percentage of college endowments be reserved for financial aid. The goal is legitimate but smacks of excessive government intrusion. However, with the top 10 university endowments now worth more than $100 billion, Congress should consider taxing the largest funds and earmarking revenues for student aid.

Some of these ideas already have broad support; others will elicit groans from college leaders. If higher education officials want to avoid further government interference, they should redouble their efforts to find more palatable solutions. The challenge of keeping college affordable is more difficult than ever, and it will take the state's and the nation's best minds to preserve Virginia's history of educational opportunities.