College Aid is an Economic Engine
Saturday, February 25, 2012 10:39 AM
Peyton R. Helm
President, Muhlenberg College
Published by The Philadelphia Inquirer
February 25, 2011
Let's say you're on a family outing when you realize you're 20 miles from the nearest exit and the car is almost out of gas. If you lighten the load, you just might make it to the gas station. Uncle Harry and Aunt Myrtle have brought along a heavy cooler jammed full of cheeses, cold cuts, and wine. How about leaving that by the side of the road? Not so fast, says Uncle Harry: We need those snacks and, besides, how about the engine? It's really heavy.
Stupid idea, right? But it's essentially what Congress is proposing to do by slashing student financial-aid programs to address the federal budget deficit.
Are we running on empty? It sure looks like it. Do we need to cut waste? Absolutely. Do we need to go further and reduce other kinds of spending? Yes, but let's not throw out the engine.
Colleges and universities are economic engines for their regions and the nation as a whole. The data prove it.
A recent survey of graduates of independent colleges such as mine, Muhlenberg, revealed that after five years, about 90 percent were employed full-time or pursuing an advanced degree; 88 percent were earning more than $40,000 a year (compared with 38 percent among Pennsylvania residents without a bachelor's degree); 60 percent owned their homes; 92 percent were registered to vote (compared with 70 percent of Pennsylvanians in general); and 61 percent were volunteering for charitable organizations.
Most important, these results held true for low-income students who could not have attended college without Pell Grants and other forms of student aid. In other words, college education transforms lives.
Pell Grants and other forms of student aid provide the essential fuel that gets these graduates into the economic fast lane. And we all benefit from their success.
But the budget resolution recently passed by the House would cut the maximum Pell Grant by $845, to $4,705, as of July 1. This would kick 1.7 million students out of the program and drastically reduce aid for the remaining 7.5 million. The bill would also eliminate funding for Federal Supplemental Educational Opportunity Grants, meaning 1.3 million students would lose an average grant of $736, while the poorest students would lose up to $4,000 in additional aid. And it would do away with funding for the Leveraging Educational Assistance Partnership (LEAP) state grant program, which provides seed money for more than $1 billion in student aid.
In the Lehigh Valley congressional district where I live, 15,000 students would lose more than $40 million in support as a result of the House provisions. Their academic ambitions and economic success are at risk.
Fortunately, the Senate still has a role to play in the budget process, and members of Congress are expected to return to their districts soon, giving us an opportunity to let them know what we think.
If student aid is so important, why don't colleges like Muhlenberg put their money where my mouth is? In fact, we do. This year, Muhlenberg is spending almost $28 million on financial aid, making it the second-biggest item in our budget, after employee compensation.
But we can't do it alone. Educating the next generation has always been a shared responsibility. It's time for Uncle Harry to ditch the snacks and help us push.