Eliminate the Department of Education? A Conversation with Dr. Beth Akers
Feb 8, 2025
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In this discussion, Dr. Beth Akers, a senior fellow at the American Enterprise Institute and author of "Making College Pay," dives into the potential elimination of the Department of Education. She explains its limited role in K-12 education and the implications for federal student loan programs. Topics include rising tuition costs, the impact of loan forgiveness, and the need for reforms to streamline student loan structures. Akers also advocates for opening Pell Grants to trade schools, emphasizing innovative educational pathways and school choice.
Eliminating the Department of Education could lead to the transfer of essential programs like Pell Grants to other agencies without disrupting access.
The current student loan structure needs reforms to ensure better alignment of loan limits with graduates' earning potential and institutional accountability.
Enhancing parental choice in education could drive competition, resulting in significant improvements in educational quality across various regions.
Deep dives
Understanding the Department of Education's Role
The Department of Education was established to centralize federal funding and programs related to education, specifically for K-12 and higher education. Initially, many of the programs now administered by this department existed prior to its creation in 1979, which raises questions about the necessity of the department itself. The podcast discusses how federal intervention in K-12 education is minimal and primarily exists for higher education funding, including various student loan programs. This results in a complex landscape where the department is seen more as a financial intermediary rather than a comprehensive education authority.
The Federal Funding Debate
There is considerable anxiety surrounding the idea of eliminating the Department of Education, as many fear it would mean the loss of federal educational support. However, discussions emphasize that existing programs, like Pell Grants and special education funding, would likely just be transferred to other agencies, preserving their availability. The notion that federal funding is crucial for quality education overlooks the fact that the majority of education funding comes from state and local sources. Therefore, removing or restructuring the department could lead to a more streamlined and efficient way of administering these funds without significantly impacting education quality.
Challenges in Higher Education Financing
Higher education is grappling with a crisis concerning student loans and financial aid programs, with growing concerns about rising default rates. The podcast highlights the issues with the current student loan structure that allows for significant borrowing without marginal accountability for colleges regarding graduates' employment success. Conversations suggest reforms focused on better aligning loan limits with potential earnings and imposing accountability on institutions for graduates' financial outcomes. This would help ensure that taxpayers are not burdened with the fallout of ineffective lending practices and lead to a more responsible educational financing system.
The Impact of Curriculum Choices
Curriculum decisions in K-12 education are largely controlled at the local level, leading to significant disparities in educational quality across different regions. The podcast advocates for increased competition and choice in education, suggesting that allowing families the autonomy to select suitable educational institutions could drive quality improvements. As schools perceive the possibility of losing students to better options, they may feel pressured to enhance their offerings. This would help address the issue of stagnant or declining educational standards in underperforming districts.
Looking Ahead: Federal Education Reform
The discussion calls for a paradigm shift in how federal education programs are viewed and managed, emphasizing that the conversation around the Department of Education's role is a prelude to potential reforms. It suggests that eliminating the department outright is unlikely but could inspire meaningful dialogue about optimizing educational funding and administration. Policymakers need to focus attention on more pressing issues within education, such as effective financial aid systems and accountability for educational outcomes. As the education landscape continues to evolve, embracing innovative approaches to standards and funding is essential to foster a more equitable and efficient system.
Following this week’s major reforms at USAID, the Trump Administration has signaled that the Department of Education (DoEd) is next on the chopping block. Education expert Dr. Beth Akers joined Rep. Crenshaw to discuss the implications of eliminating DoEd, some much needed reforms to student loan programs, and the pathway to empowering parents and local communities to revamp K-12 education.
Dr. Beth Akers is a senior fellow at the American Enterprise Institute, where she focuses on the economics of higher education. She is the author of Making College Pay: An Economist Explains How to Make a Smart Bet on Higher Education. Follow her on X at @DrBethAkers.
The layman’s explanation of what the DoEd does
Would eliminating the DoEd end education grants?
What happens if the DoEd is eliminated?
Stats on student loan debt
Who benefits from student loan forgiveness?
The correlation between student loans and rising tuition
Should university endowment programs be taxed?
Streamlining student loan programs
Opening PELL grants to trade schools and other pathways to a successful career
The debate over school choice
Rethinking K-12 education and turning state education curriculums into labs of democracy
How the USAID reforms are paving the way for broader changes
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