The rapid escalation in the cost of higher education is a widely acknowledged problem that threatens the ability of low- to moderate-income students to get a college education. That’s why we welcome recent proposals in Washington that would increase grants for financially needy students, as well as simplify the financial aid forms and reduce interest rates.
During the last two decades, this country’s education policy has sent mixed messages to our young people. Through high school, the focus is on attaining grade level standards and preparing students for college. Then they encounter a funding structure that has made college so expensive as to be an economic impossibility for many.
For instance, when Pell Grants were introduced in 1972, college tuition levels were low enough, particularly at public institutions, so that the grants made a significant difference in the ability of many students to attend college. But the grant levels haven’t kept up with exponentially increasing college tuition, a trend fueled by state decisions to cut public funding and colleges’ escalating expenditures.
This collision of forces is most injurious to students whose families don’t have the financial wherewithal to pick up the slack. Furthermore, financial aid as a whole has been shifting toward helping the middle class, leaving the most needy behind. A recent study by the Education Trust reported that during the past decade, 50 state “flagship” institutions found that aid to families making more than $100,000 increased by 406 percent while aid to families making less than $20,000 a year decreased by 13 percent.
As student aid philosophies and qualifications have been expanded to include middle-income families, who admittedly are struggling to pay college tuition bills, there is less available for lower-income students.
President Bush included in his budget a proposal to increase the maximum Pell grant to $4,600 in 2008 and to $5,400 in 2012. Congress’ broad blueprint for a $2.9 trillion budget, passed last week, emphasizes Pell increases, but the details are yet to be hashed out.
The U.S. Department of Education and Congress seem to be of similar mind on another proposal that would help lower-income students in getting to college – simplification of a seriously complicated form necessary to apply for federal financial aid. The current paperwork – the Free Application for Federal Student Aid, or FAFSA – is eight pages long and has 101 questions on it. It can take 10 hours or more to complete.
Federal lawmakers also have introduced measures that would cut in half the interest rate on federally subsidized student loans, which is now 6.8 percent.
Increased grants, simplification of the application and more affordable interest rates are all important steps that could significantly improve access to higher education. As this country continues to integrate into a global economy, the importance of a college-educated work force has become increasingly apparent.
We must ensure that a college degree is an option for all of our young people and that financial help is available at every income level.
