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ERIC Number: ED557624
Record Type: Non-Journal
Publication Date: 2015-May-20
Pages: 9
Abstractor: ERIC
Reference Count: N/A
Statement before the Committee on Health, Education, Labor and Pensions (HELP) on Reauthorization of the Higher Education Act: Exploring Institutional Risk-Sharing
Kelly, Andrew P.
American Enterprise Institute for Public Policy Research
Andrew Kelly, the director of the Center on Higher Education Reform at the American Enterprise Institute, shares his views on the concept of risk-sharing in higher education. The author presents the question: How would a risk-sharing policy--where colleges bear some financial responsibility for a portion of the federal loans that their students do not repay--better align the incentives of colleges, students, and taxpayers? This paper discusses the following: (1) the problems with the current approach to determining student aid eligibility; (2) the principles of risk-sharing and how it could be an improvement over the status quo; (3) basic policy design principles; and (4) important caveats that must be kept in mind.
American Enterprise Institute for Public Policy Research. 1150 Seventeenth Street NW, Washington, DC 20036. Tel: 202-862-5800; Fax: 202-862-7177; Web site:
Publication Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: American Enterprise Institute for Public Policy Research