School-to-Work and Higher Education

In today’s economic climate, a high school diploma is no longer sufficient to secure a job that will provide financial security and upward mobility. More and more jobs require a postsecondary education, even jobs that 10 years ago did not. However, according to a recent study by ACT, Inc., too few students graduate from high school, and even fewer leave high school with the occupational and academic skills they need to succeed in the workplace or in postsecondary education. According to ACT, students’ leaving high school without being prepared for postsecondary training or entry into the workforce will cost our nation more than $16 billion each year in remediation, lost productivity, and increased demands on criminal justice and welfare systems.

Originally enacted in 1965 and most recently reauthorized in 1999, the Higher Education Act (HEA) aids students in preparing for and accessing postsecondary education. The programs and activities of HEA fall primarily into one of four categories: student financial aid, support services to help students complete high school and enter and succeed in postsecondary education, aid to strengthen institutions, and aid to improve K–12 teacher training at postsecondary institutions. In 1984, the Carl D. Perkins Vocational and Technical Education Act was signed into law to help provide individuals with the academic and technical skills needed to succeed in a knowledge- and skills-based economy. Most recently reauthorized in 1998, Perkins supports career and technical education that prepares students for both postsecondary education and the careers of their choice.

Today, only two-thirds of all entering 9th-graders will graduate from high school on schedule. Of those who do eventually graduate, roughly three-quarters will go on to some form of postsecondary education within two years of their high school graduation. More than one-quarter of freshmen entering postsecondary institutions, however, enroll in one or more remedial courses in reading, writing, or mathematics.

Acquiring the proficiency needed to succeed is especially difficult for low-income students and minority students, who, according to the Education Trust, typically graduate high school with skill levels equivalent to what their white and affluent peers have achieved by the end of middle school. The challenges are exacerbated for those students who drop out, a group that includes roughly half of all black, Hispanic, and Native American students.

Projections indicate that there will not be enough postsecondary school graduates to fill the millions of new jobs that will be added to the labor market in the coming years. And, according to ACT, students’ leaving high school without being prepared for postsecondary training or entry into the workforce will cost our nation more than $16 billion each year in remediation, lost productivity, and increased demands on criminal justice and welfare systems.

Higher Education Act

To aid students in preparing for and accessing postsecondary education, Congress passed the Higher Education Act (HEA) in 1965. Through HEA, the federal government provides nearly $50 billion in loans, grants, work-study, and institutional aid to support postsecondary education.

The supermajority of the funding, 95 percent, goes to student aid programs included in Title IV of the law. The largest Title IV student aid programs are the Federal Pell Grant Program (which awards grants based on need), the Federal Family Education Loan (FFEL) Program (which is funded by private lenders), and the William D. Ford Federal Direct Loan (Direct Loan) Program. Other Title IV programs include the Federal Perkins Loans (low-interest loans for students with financial need), the Federal Supplemental Educational Opportunity Grant (FSEOG) Program (which awards grants based on exceptional financial need), and the Federal Work-Study Program (which offers jobs to students with financial need, allowing them to earn money to help pay education expenses). Title IV programs provided more than $69 billion in student assistance in fiscal year 2005 (this figure includes the aid provided through the privately funded FFEL Program).

The remaining HEA funds are used to ensure access, improve teacher quality, and improve postsecondary institutions. According to a Congressional Research Service Issue Brief for Congress, “The HEA’s primary programs for student services are the federal TRIO programs and the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), both included in HEA Title IV. In general, these programs provide disadvantaged students with support services to help them complete high school, and enter and persist in college. The TRIO programs (so called because there were once just three of them) include Talent Search, Upward Bound, Student Support Services, Educational Opportunity Centers, McNair Postbaccalaureate, and Staff Training” (James B. Stedman, The Higher Education Act: Reauthorization Status and Issues (PDF), 20 October 2004).

Title II of HEA, Teacher Quality Enhancement Grants for States and Partnerships, establishes reporting requirements for states and higher education institutions regarding the quality of teacher education programs. Title II also provides grants for improving teacher education programs and grants for strengthening teacher recruitment efforts.

Vocational and Technical Education

Originally authorized in 1984 and most recently reauthorized in 1998, the Carl D. Perkins Vocational and Technical Education Act (Perkins) is designed to provide individuals with the academic and technical skills needed to succeed in a knowledge- and skills-based economy. Perkins supports career and technical education that prepares students for postsecondary education and the careers of their choice.

High-Growth Job Industries

According to U.S. Department of Labor projections, the economy will continue generating jobs for workers at all levels of education and training. Growth rates are projected to be faster for occupations requiring some form of postsecondary degree (whether it be a vocational certificate, an associate degree, or a higher degree) than for occupations requiring less education or training.

The Department of Labor recently identified 10 high-growth industries. These 10 industries are projected to add substantial numbers of new jobs to the economy or affect the growth of other industries; are existing or emerging businesses being transformed by technology and innovation requiring new skills from workers; and are economically vital to the overall health of the American economy. The Department of Labor also identified three emerging industries that will have significant growth in the coming years. The 10 high-growth industries are

• Advanced manufacturing
• Automotive
• Construction
• Energy
• Financial services
• Health care
• Hospitality
• Information technology
• Retail
• Transportation

The emerging industries are

• Biotechnology
• Geospatial technology
• Nanotechnology

National PTA supports legislation and programs that provide academic, counseling, and college preparatory services to assist students, particularly low-income and disadvantaged students, in secondary school completion and postsecondary enrollment.

National PTA supports legislation and programs, such as federal grants to students and other forms of financial aid, that foster an economically, culturally, and ethnically diverse student population.

National PTA believes that the federal government plays a vital role in preparing students to succeed in the workplace: the federal government helps states and local communities prepare school-age and adult populations to enter the labor market and to meet national needs and interests.

Talking Points

• Postsecondary education substantially increases one’s long-term earnings potential, lowers incarceration rates, results in higher levels of civic participation, and benefits society as a whole through lessening the burden on social safety-net programs.
• Public benefits, such as increased economic growth and productivity, justify greater federal support for increasing access to postsecondary education for all citizens, particularly for those students who, due to financial constraints, would not otherwise enroll.
• Every student should be afforded every opportunity to graduate from high school or earn a general equivalency diploma (GED), and should be adequately prepared for and encouraged to pursue postsecondary education or employment