Sometimes it feels all one does in college is prove they can adhere to an attendance policy, forcing them to show up long enough to regurgitate sloppily packaged information spewed in the general direction of a classroom. This occurs over a period of months, twice a year, and is memorialized after however long it may take to fulfill the 120-hour requirement, by a sheet of paper printed by somebody who might not even have a degree.
And what gets to the students the most is they are actually paying for this, and at an ever-increasing rate.
According to the House Education and Labor Committee, college costs have increased almost 40 percent over the last five years. But the federal government has recently approved a measure to help some people out.
The College Cost Reduction and Access Act, signed into law by President Bush on Sept. 27, is said to be the largest increase in federal funding for college students since the G.I. Bill helped 7.8 million World War II veterans pursue an education.
Under this legislation, Pell grants will be increased by $490 per student next year, with a minimum increase of $1,090 over the following five years.
The bill will also cut subsidized loan interest rates in half over the next four years. This will make the loans easier to handle, making sure the borrowers will be required to put no more than 15 percent of their income towards paying off loans. It will also grant loan forgiveness to those suffering in economic hardship after 25 years. How generous.
The current rate for students taking a full load and living off-campus at MTSU is $2,639 for in-state students and $7,777 for out-of-state students. Living in a residence hall almost doubles this price for in-state students, starting at $5,109 and varying based on where the student lives on campus. Out-of-state students pay $10,247 and up.
“When people first go to college, they do not understand the debt load,” said U.S. Rep. Bart Gordon, who showed heavy support for the bill. “A lot of the people [this bill will affect] are the first or second generation in their families to attend college. We also want to help students go to school in the first place without so much debt that it burdens them.”
While this sounds all well and good and will truly help some get a higher education, some believe it may be a waste of taxpayer money. A poster under the name “Max” on financial writer Anya Kamenetz’s blog said, “I don’t like the idea of the government paying for theater majors to complete their degrees.”
And it is a valid complaint. Should the government pay for somebody to pursue a degree that leaves him or her with no practical workplace skills?
It might be easy to label this thinking as some sort of discriminatory practice, had the writers of the bill decided to go this route. However, there appears to be a built-in device to encourage students to take routes that would benefit the greater good. Gordon said scholarships will be offered to students who wish to teach math or science.
Also, the loan forgiveness comes a lot sooner for those who go into a public service, which the House Education and Labor Committee defines as, “military service members, first responders, law enforcement officers, firefighters, nurses, public defenders, prosecutors, early-childhood educators, librarians and others.”
The loan forgiveness was originally limited to teachers and those in law enforcement. The wider range now offers forgiveness to those who enter into one of the professions above and provide 10 years of service.
But how is this being paid for? Apparently, it’s to no extra costs to the taxpayers. Over the next five years, the government is planning to cut $19 billion worth of subsidies it hands over to the student loan industry (the same industry that has been plagued with scandal resulting from shady loan and collection practices as well as payoffs to college officials), and as a result, some banks are taking a hit.
The SunTrust Bank strategically fortified across the street from MTSU has a program geared directly towards lending to students. This will end, however, in March 2008 as a direct result of this bill.
“Basically, the financial yield provided to the lenders has been significantly reduced,” said Hugh Suhr, spokesman for Suntrust. He added that they will be turning over their loans to other lenders like Sallie Mae and Nelnet.
This, in itself, could alleviate many problems college grads face.
As far as enrollment is concerned: “It will not have a significant impact on MTSU,” said David Hutton, director of financial aid at the university.
According to Hutton, roughly 5,600 of MTSU’s students are on a Pell Grant. Currently, there are 11,000 students on subsidized loans.
Changes are being made to the formula, but even Gordon agrees overall attendance will not be heavily affected.
For those of you lucky enough to benefit from this increased funding, the Education and Labor Committee has created a calculator that will allow students to see how the bill will affect their current student loans at edlabor.house.gov/college.
