Misuse of Federal Aid in Higher Education by Connie Miller

Enrollment at universities and junior colleges keeps growing every year. It is becoming increasingly hard to find employment without a degree under your belt.  More people of all ages are going to college either to get educated in another field or getting educated for the first time. Young adults are joining the military because the college assistance is fitting in with their plans for the future. A lot of these young adults find this is a way toward their education goals. There are many government programs but not all individuals fit within the guide lines and others would rather not deal with student loans.

According to Collegeboard.com around 2/3 of students in undergraduate college programs attending full-time are using some form of grant, loan, scholarship or work study program to help cover cost while in college. Federal aid for higher education totaled over 116 billion dollars in 2008-2009.  At that time $24.8 billion dollars went toward grant programs, going to students in lower income brackets or who are competitive academically.  Federal tax benefits to families who had tuition cost account for $6.8 billion dollars of the aid paid during the year. Work study programs accounted for $1.2 billion dollars. Work study programs are where the student works in office there at the institution to pay their tuition. The greatest amount goes to guaranteed government loans with a grand total of $84.0 billion dollars. That is about 72% of the aid for 2008-2009.  

According to an article by Kelly Field posted on chronicle.com at the closing of 2008 $39.1 billion in student loans had defaulted and 2009 had even more with $50.8 billion in default. If a University or community college hit a certain default percentage they can lose their qualifications to give federal aid, which equals about 90% of the institutions revenue. In 2007 the default rate allowed was 25% for three years in a row before an institution would be ineligible to award federal aid. In 2011 the rate went to 30% for three years in a row before an institution will lose it ability to award federal aid. Institution are trying to be more careful in thoroughly looking at academia and looking each semester for improvements in student attendance and grade point average but they still push it to the limits.

Student loans are not the only problem. Student grants are a problem to. College students are learning ways to manipulate. The name being associated with these students is “Pell runner” what they do is stay at college longer enough to get their grant. They will flunk that semester and then the next semester at another college. They are actually allowed to do this nine times before their eligibility runs out. They prefer community colleges because class cost is lower so they get more for their pocket.

I think it is sad that people take an opportunity to better themselves for granted and take that opportunity away from another. The truth of the matter is that it is happening and each college should have to establish their own way to prevent this. I think so much goes out that there needs to be a strict set of rules in place to be followed and if a institution does what is required that should not have to worry about losing the opportunity of federal grants and loans. I repeat offenders are given way too many chances. I personally have known people who were taking six hours so they wouldn’t have to pay their loan back and they way they could keep receiving loans. I think there needs to be a certain grade point average that should be maintained, a certain time to obtain your degree and maybe three strikes you’re out. I think nine times on a student grant is asking for trouble

http://febp.newamerica.net/background-analysis/federal-higher-education-programs-overview

http://chronicle.com/article/Many-More-Students-Are/66223

http://www.collegeboard.com/student/pay/add-it-u

chronicle.com/article/ECducation-Department-Chases/128821/