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Presidential forerunner Dean proposes student federal aid

Jamie Loo
Contributing writer with wire reports

Photo (read caption below)

Democratic candidate Howard Dean recently announced a plan that would guarantee $10,000 a year in federal financial aid to college students.

Dean has argued that President George W. Bush's tax cuts have resulted in cuts to Pell grants and other federal financial aid. His proposal would entitle students to $10,000 a year for college or a high-skills training program. In order to finance his plan, Dean would repeal all of Bush's tax cuts.

As part of his $7.1 billion higher education program, the former Vermont governor proposed having students in eighth grade commit to attending college or a high-skills training program. Families would then be given advance calculations of the federal aid they would be qualified for and would not have to pay more than 10 percent of their income towards loans after graduation.

The debt obligation would be held to 7 percent for students who enter nursing, teaching, social work, law enforcement, firefighting and emergency care, which Dean calls the "Public Service Corps." Following graduation, student loan debts would be considered paid in full after 10 years.

Higher education plans have become a hot topic among many of the Democratic candidates seeking the party's presidential nomination. Sen. John Edwards of North Carolina has proposed revisions to the national college loan program by getting rid of banks' roles in student loans. Edwards wants to provide one year of free tuition to students attending public universities and community colleges. Students would be required to do 10 hours of community service each week and be academically prepared for college.

Sen. John Kerry of Massachusetts has proposed a high school community service plan that would qualify students for the equivalent of their state's four-year public college tuition. The "Service for College" plan requires two years of service from students and his overall plan would cost $3.2 billion. The "College Opportunity Plan," a proposal by Sen. Joe Lieberman of Connecticut, includes increasing the maximum value of Pell grants and providing more federal financial aid.

Rick Schoell, the University director for governmental and federal relations said this institution has always been supportive of federal financial aid programs such as Pell grants and direct loans. Schoell said there are a lot of complex issues in higher education funding that the candidates need to consider.

"Criteria indicate that both (Pell grants and direct loans) have been important to meeting the needs of students," Schoell said.

Orlo Austin, director of the office of student financial aid at the University, said he hasn't had the chance to analyze any of the higher education plans yet. Austin said direct loans cost the government less money than the private loan programs. Based on the figures in President Bush's fiscal year 2004 budget, direct loans are more cost effective than guaranteed loans. By applying just a direct loan program to the University of Illinois' Urbana and Chicago campuses, the government would save more than $20 million. Austin said direct loans have their benefits and he also has no problem with a service expectation for students to earn money to go to college.

"There's no reason why both can't be done," Austin said.

Lauren Kidwell, president of College Democrats, said she doesn't have an opinion on Dean's plan yet.

"I'm mostly concerned with a plan that will allow more students to attend college," Kidwell said.

She said that because society is moving more toward technology than industry, more people will need to have a college education.

"Any plan that would work towards sending more people to college will be great," she said.

The College Democrats have not decided which candidate they are endorsing yet, but Kidwell said she is happy to see candidates making education plans.

"I'm pleased to see all of the candidates putting out plans for higher education. It shows that this is an important issue."

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