Squeeze on Campus

If President Reagan has his way, at least 1 million college students will lose part or all of their financial aid next year. The Administration proposes deep, destructive budget cuts of $3.7 billion that would reduce scholarships and eliminate work-study jobs. The proposals would also gradually eliminate guaranteed student loans, which have helped millions of students pay for college.

The Administration reasons that students, not taxpayers, are the primary beneficiaries of higher education so that students, not taxpayers, should pay. But the entire nation benefits from a well educated citizenry. Without citizens with talent and skills to compete in a high-tech world, the nation will pay in far more painful ways.

The scholarships, Pell grants, are distributed according to need to students whose families earn $29,000 or less. The grants are a blessing, because even when students get them they still must apply for hefty loans. Under the Administration’s proposals, grants would go only to students from families whose incomes range from $10,000 to $20,000, and there would be fewer of them. One million students would lose out.

Work-study grants finance part-time jobs that not only help pay tuition but also give some students their first work experience. The Administration would eliminate work-study programs worth $592.5 million.

Guaranteed student loans are the only ticket to college for many students from poor and middle-income families. Under current policies, the government pays the interest while the student is in college. The Administration would have students pay the interest while in college or add it to the cost of the loan after graduation. A higher fee would be tacked on to cover defaults.

Millions of students have studied now and paid later since President Lyndon B. Johnson signed the Higher Education Act of 1965, which launched the federal government’s major programs of student financial aid. The act provided grants and work-study opportunities, but Johnson--who had to borrow heavily to pay for college--was most interested in the provision for guaranteed student loans that made loans more widely available.

The proposed cuts are doubly devastating, because student borrowing is rising dramatically as college costs go up. One-third to one-half of all students leave college owing money, according to a recent congressional report. The typical graduate of a public college owes $6,685. The typical graduate of a private college owes $8,950. The students who lose their scholarships and their jobs may not be able or willing to borrow enough more money to stay in school, especially at today’s high prices.

College isn’t an inalienable right, but students should have an equal shot based on brains, not on ability to pay. It is in the best interest of future generations of students and of this nation to help more--not fewer--Americans obtain a college education. Congress should shelve the Administration’s proposals.