The proposed bill, S. 5191, known as the "Correctly Recognizing Educational Achievements To Empower Graduates Act" or the "CREATE Graduates Act," aims to increase degree attainment in higher education institutions. It introduces a grant program to support states in identifying and awarding associate degrees to students who have completed enough credits but have not yet received their degrees. The bill encourages collaboration between two-year and four-year institutions to smooth the transition for students transferring between these institutions.

General Summary of the Bill

The CREATE Graduates Act seeks to provide financial support to states to help higher education institutions increase postsecondary degree attainment. This involves initiatives like identifying students who have enough credits for an associate degree, providing outreach to students near completion, and creating partnerships between two-year and four-year colleges. States can apply for these grants, and they are encouraged to use a portion of these funds to establish articulation agreements to ease student transitions between institutions.

Summary of Significant Issues

Several key issues arise from the bill's provisions:

1. Administrative Costs: The allowance for states to retain up to 15% of grant funds for administrative purposes could potentially diminish the funds available for direct student support.

2. Competitive Subgrant System: The requirement for institutions to compete for subgrants may disadvantage smaller or resource-strapped institutions that might struggle to prepare competitive applications.

3. State Policy Disparities: States with existing policies for awarding degrees retroactively might find themselves at a disadvantage compared to states without such policies, potentially punishing those that have progressed in this area.

4. Reporting and Privacy Concerns: The extensive requirement for data disaggregation could place a significant burden on institutions with limited data capabilities. Additionally, there are potential privacy concerns, especially in small sample sizes.

5. Cost Prohibitions: The prohibition of charging students for participation in grant-funded activities, while beneficial for students, might limit institutions' capacity to absorb certain operational costs.

Impact on the Public

The CREATE Graduates Act aims to enhance the educational outcomes of postsecondary students, which could have widespread societal benefits. By increasing degree attainment, the bill could improve career prospects for many individuals, potentially leading to higher earnings and job stability. This in turn could stimulate economic growth and increase the skilled workforce.

Impact on Specific Stakeholders

States and Educational Institutions: While the bill provides an opportunity for states and institutions to receive funding, the competitive nature and stringent requirements, such as data reporting and administrative management, might overwhelm some entities, particularly those with fewer resources.

Students: The bill has the potential to directly benefit students, especially those who have previously earned credits but not a degree, by reducing educational barriers and financial burdens. However, there is a risk that some students might not be adequately reached if institutions lack the necessary infrastructure to participate fully in the program.

Institutions with Existing Policies: Institutions in states with existing degree attainment initiatives might feel unfairly penalized by the bill’s prioritization criteria, which favor states without such programs, possibly discouraging proactive policy efforts.

The CREATE Graduates Act aims to facilitate higher education completion through targeted support and systemic collaboration. While its goals are commendable, careful attention to implementation details will be crucial to ensure that the intended benefits reach all potential stakeholders effectively.