Political Equinox

The Issue: In today’s New York Times there was an interesting article regarding Harvard University’s change in the way they distribute financial aid. They have decided to “…expand financial aid to students from families earning as much as $180,000 a year” which would include many middle and upper middle class families. Harvard, as a leader in financial aid practices, has already inspired other institutions to follow their lead. Some believe this is fortunate for the US postsecondary system, as it would expand financial access to elite private institutions, not just to the wealthiest and to the poorest that already receive significant “need based” financial aid.

Many colleges and universities feel they would not be able to provide that much financial aid access. With their behemoth of an endowment at nearly $35 billion, Harvard can afford to significantly expand their financial aid practices to the middle class. Other institutions do not have the fiscal prowess of an Ivy League school and must make decisions as to what they fund. The Times article alludes to some colleges perhaps cutting back on funds for lower income financial aid.

My Stance: I believe this issue is a difficult one which will require a complicated solution. Although I do not feel I have been significantly discriminated against in obtaining financial aid, I do find it frustrating at times that since I am of the middle class and am not a minority I am not privy to the certain scholarships and ‘need based aid’ that others have access to. I must rely on meritoriously rewarded financial aid in order to attend a private institution.

Wabash is like Harvard in that they have a significant endowment on a per student basis. While nowhere near $35 billion, the $413 million for a student enrollment of only 900 allows for a significant amount of scholarships and grants for the students. I believe if they followed Harvard’s lead to an extent, it would not destroy the endowment they worked so hard to build. This is not true for all institutions, and many colleges who are barely scraping by each year could not afford such a drastic increase in financial aid without a severe changes.

I believe part of the solution is greater government investment in education. If a student has the intellect to get into excellent private institutions with high tuition they should be able to attend without significant debt after their time at the institution. The government should provide significant income tax breaks to middle class families with children in college. Every part of the college experience should be significantly tax deductible - tuition, room and board, books etc.

Even if such a tax break never becomes a reality, I think Harvard’s lead could prompt a change in the way many scholarship-granting organizations provide financial aid. Large scale organizations that are not tailored to a certain demographic or income level may be more willing to expand the parameters for which they grant certain scholarships. They would value not only the obstacles one has to overcome, but a panoply of factors.

What’s your stance?

Tags: financial, income tax, Middle Class, New York Times, tution