OPINION:
Millions of everyday Americans are shelling out for unaffordable tuition to get basic workforce credentials. Just look at graduation rates and college debt.
One of the best new solutions is Workforce Pell Grants, which help people get meaningful job credentials — fast.
Workforce Pell Grants are new this academic year. They provide thousands of dollars in funding, depending on the program’s length, to help people earn short-term credentials that directly increase their value in the workforce.
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So you can skip the six years of drinking and debt that lead to a dead-end bachelor’s degree in, say, psychology — or no degree at all. Instead, the federal government gives you a monetary incentive to gain useful skills and then get to work.
These education programs are worth it. The ones that get approved must be of high quality. To qualify, they need strong outcomes for completion and employment. This means that no one can set up a fake learning center behind the local laundromat and expect to defraud the government with tuition for a useless credential.
States must establish implementation rules and then have programs approved by the federal government. So far, just a few states have gotten programs approved, but we should expect many more. These early days of Workforce Pell Grants offer a terrific opportunity for business partnerships and other innovations.
In Ohio, a bill is moving through the legislature that includes innovative policies to establish qualified education partnerships, or QEPs. Under QEPs, a firm helps a college to design a high-quality degree or certificate program. The college keeps academic control, but the firm can help adapt the content dynamically as workforce needs evolve.
In return, the firm receives a state tax credit equal to 20% of expenses, plus $1,000 for each successful graduate who returns to the industry.
One key is that the graduate can work for a rival firm. The point is to educate the workforce, not to just help one firm.
Because colleges and state systems often lack the resources and industry expertise to stay current, many already work with online program management partners. These are third-party organizations or firms that fill the gap. They move much faster and more efficiently than campus bureaucracies.
QEPs with online offerings and in-person training combine industry wisdom with college structure. Ohio Senate Bill 462 offers a strong policy model that other states should adopt.
Improving the program at the federal level would not be difficult. First, education and workforce agencies should keep feedback lines open. Federal programs are too often one-size-fits-all and hard to adapt to local needs. Let states lead the way, but be open to regulatory and statutory reform as needed.
Second, there is a specific way to reduce federal uncertainty over what is allowed. For 15 years, the Department of Education has had a “bundled services” policy that allows firms to group marketing and recruiting services with educational services without violating any rules. Codifying this policy into law would let QEPs thrive without fear of a future anti-business regime.
Third, understanding the effectiveness of Workforce Pell Grants should be a research priority. Are the benefits of the program worth the cost? Should even more resources be moved from four-year college programs into short-term ones?
Finally, members of Congress should resist the effort to “fix” the overall Pell program, both long- and short-term, by simply throwing in more taxpayer dollars to meet the alleged “shortfall” of up to $100 billion over 10 years.
A narrow offset could follow the recent congressional proposal to require students to take at least 30 credit hours per year for maximum Pell eligibility. Or we could end the Public Service Loan Forgiveness program for new borrowers, which could save $30 billion over 10 years.
The United States constantly has millions of unfilled jobs. Ohio has hundreds of thousands. Meanwhile, millions of students are starting college but not finishing it. Workforce Pell Grants are an excellent policy solution that could get even better.
• Adam Kissel is a visiting fellow in higher education reform at The Heritage Foundation.
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