12.3: Education Spending
Scale back K-12 education spending and reform higher education spending. Other Information:
Scaling Back K-12 Education Spending and Reforming Higher Education Spending. Federal spending on K-12 education has grown
192 percent faster than inflation since 2000, yet this sharply increased federal spending and federal micromanagement of school
districts has not improved student performance. Under the Heritage plan, total federal K-12 spending is reduced to 2000 levels
(adjusted for inflation), in part by eliminating many of the numerous small education programs that Washington uses to micromanage
school districts. This will allow states and school districts to manage and meet the needs of their students more effectively.
Higher education reforms, including the new deduction for college tuition in the Heritage tax reform, ensure that students
receive enough financial assistance to attend college. Shifting from grants to student loans ensures that most college costs
will be financed by the college graduates themselves, who benefit the most from their degrees, and not by other Americans.
However, thanks to a key provision in the Heritage plan's tax reform, higher education costs are partially defrayed through
the simplified and generous tax deduction for higher education tuition. Families whose incomes are too low for them to benefit
fully from this tax deduction are eligible for a Pell Grant with a value up to the tax deduction. The direct student loan
program is retained with loan limits high enough to guarantee college access but with rates set to ensure that there are no
budgetary costs, including the costs associated with deferred repayment until graduation as well as the costs of loan forgiveness
programs. Thus, all Americans will have access to financial aid in attending college, but it will not be a free ride at the
taxpayers' expense.
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