The Pell Grant blog inspired my thoughts for this blog.
Should college be funded by the government?
Should college be funded by the individual?
Is college a "right" and not a privilege?
Is it unreasonable to place requirements on government education grants? I say no. I would put the following restrictions:
1) the degree must be in a field that serves the greater good of society (education, engineer, business management, medical, etc.). In other words, I don't want to be funding some girl getting her degree in Art History, Latin, or Religious Studies.
2) You must maintain at least a 2.75 GPA in undergraduate, 3.0 GPA in graduate studies throughout your college career. If you drop below, you have one semester to recover.
3) You must repay within 20 years of graduation unless there is a really good reason why (you legs were severed in a freak trolley accident or your kid has cancer).
4) You get a 5 year 'grace period' before the first payment is due. If you start paying within the grace period, the government matches your payment by 50%. You pay a dollar, the government pitches in 50 cents. If you are showing responsibility, you should be extra rewarded.
5) Regardless of reason, you must repay at least 50% of the loan. Once you hit 50% payment, you can apply to "refinance" the loan for an addition 10 years. Show me good faith, I will givei it to you.
6) You have 7 years to graduate. If you don't graduate, complete payment is due within 5 years (with exceptions as above). If you drop out for more than one academic year, payment is due as above. Call this the "Van Wilder Clause"
7) If you serve four years in federal service (military, federal law enforcement officer) then your loan (up to the amount of a Montgomery GI Bill loan) is considered paid in full.
8) Your payment is 100% tax deductible within the first 10 years, 50% deductible after that.
9) Loans are avialable only for public colleges and universities. IF you want to attend a private university, then you can get a grant no more than the cost of the most expensive state university.
YOUR THOUGHTS?
