Priorities
Most of you know that last year Congress passed and Obama signed an IAVA-crafted bill that in effect cut GI Bill benefits for most active duty veterans. The bill was one of the few times that the Democrats applied PAYGO rules during the first two years of the Obama administration and some Dems even praised the fact it might save a couple million of dollars.
Now fast forward to today. Part of the new debt deal is an increase in funding for Pell Grants for civilians who are looking to go college or a vocational school. Wait, I thought this whole debt deal was about cutting spending? Well, gee I guess Pell Grants must be incredibly fucking awesome if they are dumping more money into the program. Wrong. Lets look at some of the things that are fucked up about Pell Grants:
1. There is evidence the Pell Grants and other forms of federal aid to higher education may actually be contributing to the rising cost of higher education.
2. Recipients of Pell Grants have on average lower graduation rates than non-recipients (nearly half of all Pell Grant recipients do not receive a degree in six years).
3. Pell Grants help prop-up worthless for-profit schools that would otherwise be devoured by the market.
4. Pell Grants put more money in the pockets of corrupt college presidents that have chosen to invest heavily in the administrative aspects of their universities as opposed to the educational aspects.
5. There is no incentive for a Pell Grant recipient to succeed considering it is a grant and not a loan. There is no requirement to pay back the money with a Pell Grant.
So, to sum it up, President Obama without hesitation signed into law a bill that weakened the most successful college aid program in the history of the United States but aggressively fought for a massive increase in funding for arguably the worst college aid program in the history of United States.
Priorities people. Priorities.
Category: Barack Obama/Joe Biden, Iraq and Afghanistan Veterans of America, Veterans Issues
I would never have been able to attend college without the Pell Grant. I graduated in 5 years, working on a double major and taking one semester off to have a baby. The grant is not ALL wasted. Just sayin’
I also went to school using a pell grant,too. BUT ALL subsidies increase the cost of products to people. Food Stamps, WIC, HEAP, etc etc etc. it all raises the prices.
Boo #2: In terms of Pell Grants I have no frame of reference. But no rational person can disagree with yer finale
Someone pays.
I personally know of one case where the Pell Grant bought a boat, and keeps the stay at home husband, (out of work), in beer and weed.
Holy Cow #4…had I known I could do that with a pell grant or any other college loan, I would have done that instead of going to college…NOT REALLY….
Thing that gets me is I would say that 90% of the folks that get these grants and other loans to get a “higher education” never pays them back. ( that number is a random number, not a scientific one)
#5 In the case of Pell grants, I would say 100% never pay them back. They are grants, after all.
Pell grants are awesome. Remember than when it comes to FAFSA requests for financial aid GI Bill money does not count toward income and all veterans, unlike civilians, have a “0” value for family contributions, regardless of age. Functionally this means that vets get the greatest possible amount allowable when it comes to federal financial aid. Cutting Pell Grants directly translates to cutting money to vets going to school. I pick up the full time work I can in my Guard unit and I use my GI Bill from my active time in the Marine Corps but without the Pell Grant I simply couldn’t afford to go to school.
All that aside, education is a force multiplier when it comes to the labor market. Empowering people to become more competitive is the best possible investment we can make with public money, IMO.
I know three people that get the Pell grant.
One a NG Aviation soldier that used it along with the OLD MBGIB to help him get through college.
Another was a kid with enough money, that he didn’t even need it.
Finally there was a guy that needed it to pay for actual courses.
So out of that sample size I’s sat at least 1/3 – 2/3 actually needed it. But a larger sample size might not work as well.
There is no doubt in my military mind that Pell grants contribute to rising education costs, although I would guess that it is minor compared to the 800 pound gorilla in that particular room – student loans.
It is simple Austrian Economics of the Von Mises School. Easy money results in an artificial signal of high demand to the market, which results in higher prices.
Dan…
I was given a Pell Grant back in 1983. It probably would have paid for classes at the local community college but I chose not to start out owing anything to anyone and joined the Army to see the world. I knew it didn’t have to be paid back, but I did it anyway. My kid this year is the recipient of a Pell Grant…there is no doubt that she will graduate.
It’s a rub to be sure. My problem is that all student loans will eventually be in the hands of the government, making a private loan unaffordable for me at this point and I would like to go back to school. I just cannot afford 3 of us at once.
Melony-
You do not have to pay back a Pell Grant. However, if you receive federally backed student loans, you MUST pay them back, unless you are in a profession that dictates time in a certain geographical area to forgive your debt…like teaching.
If you default on the loan, you will lose your shirt and it cannot be forgiven in bankruptcy. Take the case of the 44 year old physician. She got through school on loans. At one point she was very ill or something and didn’t pay the loans. She could have applied for hardship and gotten relief, but didn’t. At 44, she does not own a house, or anything. Her once manageable 160k debt is around 500,000.
http://www.youtube.com/watch?feature=player_embedded&v=J7XA2UUpXRk
you oughtta watch this one.
@6 – yeah I know…I had to pay every one of mine back, with interest to boot. I also had to work *gasp* between classes to pay on my college.
This is about paying off the academicians and the enormous collegiate bureaucracies for their loyalty, of which these university hacks will of course contribute serious $$$ and impressionable youngters/votes to their patrons.
#12 Doc B
That there is an Obama voter for sure.
I am quite aware that you don’t have to pay back a grant, thanks.
Hell, I knew people when I was in college who got their Pell Grant money and it mostly became funds for 12 packs of Milwaukee’s Best.
I think pell grants help alot of people receive education that could not afford it. they should increase it. This countryis slowly falling back into the old south days where they wanted to keep everybody dumb. Education is the key to having a great nation, so y is everything about cutting education dollars nowadays. Cut war funding then we will save money ppl.
Even with my Post 9/11 GI Bill if I didn’t have Pell Grants I’d be SOL if I wanted to attend a half decent school (my state universities are crap.)