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Restore Ability to Benefit Program with Limits to Prevent Abuses

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As yesterday, lawmakers from both political parties are pushing for the restoration of a program that allows college-ready students who haven鈥檛 earned a high school diploma or GED to receive federal financial aid funds to pay for college. That鈥檚 good news. But rather than simply bring back the program as it previously existed, lawmakers should limit the program to schools that have a proven track record of serving their students well to prevent the type of abuses that have hounded it in the past.

鈥淎bility to Benefit鈥 (ATB) was a policy in place until July 2012, when it was to shore up funding for the Pell Grant program. The ATB program permitted students who hadn鈥檛 graduated from high school or obtained a GED to receive aid, provided that they could demonstrate they were ready for college-level work through either passing a federally-approved exam or successfully completing at least 6 credit hours of postsecondary education.

While the ATB program benefited many students, it also experienced substantial controversy. In 2009, the Government Accountability Office (GAO), for example, at a publicly-traded for-profit college and found that the school was helping prospective students cheat on the ATB exam, presumably to pump up its enrollment numbers and collect more federal student aid funds. Test administrators gave the students answers to some of the questions. They also tampered with the test forms 鈥 crossing out wrong answers and replacing them with the right ones 鈥 to ensure that students passed. In addition, while conducting site visits at for-profit colleges around the country, the accountability office identified instances at two separate publicly-traded institutions in which recruiters 鈥渞eferred students to diploma mills for invalid high school diplomas in order to gain access to federal loans without having to take an ATB test.鈥

This was not the. As the GAO report noted, both the and the found similar problems in the past.

While such abuses are clearly unacceptable, they should not obscure the importance of the program: that it gives students who dropped out of school, for one reason or another, the only opportunity they may have to earn certificates or degrees to advance their careers. The Department鈥檚 own experimental site demonstrated that 鈥6-credit鈥 ATB students did as well as those with a high school diploma.

Eliminating the program to help pay for Pell Grants. As the California community college system and the California Association of Student Financial Aid Administrators , 鈥淓conomizing by closing the door on the neediest individuals who stand to gain the most from some career-specific postsecondary training just does not make policy, political or economic sense.鈥

Congress should bring back the ATB program. But there need to be limits on who can participate. As , only schools that have a cohort default rate under 15 percent or that meet other institutional accountability metrics should be able to take part in the program.

Lawmakers need to proceed cautiously. Otherwise, we may see the return of the type of abuses that bedeviled the program for years.

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Stephen Burd
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Stephen Burd

Senior Writer & Editor, Higher Education

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Restore Ability to Benefit Program with Limits to Prevent Abuses