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05.15.2008 1:07 pm

Thursday editorial: Dream killers

FAFSAIn 1980, presidential candidate Ronald Reagan promised that if elected, he would abolish the then-fledgling U.S. Department of Education. He was. He didn’t.

But at this time of year — the high season for applying for many of the financial aid programs the department administers — a lot of students and parents can understand Mr. Reagan’s sentiments.

We’re talking governmental malpractice on a breathtaking scale.

The financial aid system is supposed to help make college affordable. It does that, but only for those who can navigate paperwork barriers that serve no
discernible public purpose. Families must run a gauntlet of impossible, often
incomprehensible, demands for information.

Want to raise your blood pressure? Take a look at the work of Harvard
economists Susan Dynerski and Judith Scott-Clayton, specifically a study they
published in 2007 called “College Grants on a Postcard.”

They dissect the federally required paper work — the Free Application for
Federal Student Aid (FAFSA)
— and compare it to Internal Revenue Service tax
forms. Tax time is a cake walk compared to the burdens imposed on kids and
their families by the student aid process.

Federal education officials claim FAFSA forms take just one hour to prepare.
The Harvard researchers proved this was pure bunkum. Ten hours is more like it,
the study found. And that’s assuming the young applicants get help from people
familiar with the forms and comfortable with the complexities of financial
records. Hard-working, qualified kids from impoverished backgrounds — the very
kids many of the programs are designed to help — may find themselves on their
own and forced to track down obscure bureaucratic data and to try to get
signatures of long-absent parents or document incomes for which no records are
kept.

Kids who can’t fill out the forms — and then satisfy repeated demands for more
and more information, as a recent story by the Post-Dispatch’s Steve Giegerich
showed — may be out of luck, thanks to inconsistent requirements of different
institutions and even make-work, bureaucratic paper pushing.

That’s not all.

Under the cockeyed federal grant calendar, applicants don’t learn whether they
receive aid — or how much — until months after college applications are closed
and admissions decisions are made. The specifics of some sorts of student aid
are not revealed until after a student has enrolled and paid tuition. The
Harvard researchers say that’s like a car salesman who discloses a rebate only
after the customer has agreed to purchase a car: “Customers scared off by a
sticker price would never even learn about the rebate and would walk out not
knowing that the car they wanted was affordable,” they observe.

Comparisons to the car salesman caricature don’t end there.

The system of college aid is a shell game of Pell grants, Supplemental
Education Opportunity grants, federal work study, Perkins loans, HOPE
Scholarship credits, Coverdell Education Savings Accounts and more. Some
overlap, others pull in opposite directions.

The pay off? The best single element of student financial aid is a
$4,000-a-year Pell grant. That’s not enough to finance a college education. But
it’s an excellent foundation on which to assemble a package of financial aid
from a variety of sources.

Congress has tried to simplify things, but the education department bureaucracy
resists. Meanwhile, college education grows more expensive. The gulf between
haves and have-nots in higher education grows wider. Our competitiveness in the
global marketplace suffers.

Things do not have to be this way.

Professors Dynarksi and Scott-Clayton propose an elegant solution in which
applications for college aid are completed on a simple postcard. Applicants
learn almost immediately the amount of aid they can expect to receive, allowing
them to plan accordingly.

That’s do-able, and a nation committed to providing access to higher education
should do it.

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8 comments

Comments are closed.

The Editorial Board neglected to mention the need to include automatic voter registration on the education welfare postcard application. After all, you need to be registered before you can sell your vote to the government worshipers for a grant from the taxpayers.

— Bb
2:18 pm May 15th, 2008

An interesting idea. Now if we can only get the editorial board of the Post to see the elegance in a simplified tax system that lets those who actually foot the bill for these wonderful programs see what they’re shelling out, we’ll be getting somewhere.

By the way, if you think the Dept of Education process for applying for student aid is a horror, just wait till the feds take over all your medical care.

— Go_Fish
2:50 pm May 15th, 2008

Well, I took time to read the 32 pages of the report (there are an additonal 24 pages of footnotes, bibliography and forms) and it mainly points out something that my college students have known for a while - the lag between application and receiving of funding authorization is frustrating at the least and negligent at the worst.

By the way, many of my “kids” are over 30 and have been in the workplace for years. They are seeking to finish college so as to better themselves at their job or go into a whole new profession.

The reason for the complexity of many of the forms is to “prevent fraud”. I might be tempted to point out the similarity here to the voter id laws proposed to “prevent fraud”, but I won’t.

— RHarnack
3:10 pm May 15th, 2008

So…it takes somewhere between 1 and 10 hours to complete an application requesting a free handout worth thousands of dollars. Oh, the horror!

Equally absurd is the idea that someone’s “dream” of a college education can be so easily “killed” by such a daunting obstacle as an application form. Sheesh. One can only wonder how such a person would fare in a challenging academic setting.

College is not for everyone, and anyone for whom a financial aid form is too formidable would probably be best served by a vocational school.

— Bart Johnson
3:51 pm May 15th, 2008

The Harvard researchers address Mr. Johnson’s point.

Like him, they pose this question:

“If people are dissuaded from college just because they don’t want to fill out a FAFSA, doesn’t that suggest that they are not really ‘college material’”?

Then they provide this answer (shortened):

“The problem with federal student aid goes far beyond the aggravation of filling out a confusing form. The FAFSA and the aid process highlight costs, obscure benefits, generate uncertainty, and ignore well-understood behavioral phenomena that can limit participation.

“For all of these reasons, complexity is not just an annoyance, but is a serious barrier to efficiency and equity of student aid.

“Theory and empirical evidence both suggest that the federal aid system is poorly designed if the goal is to get more people into college…

“Seemingly minor obstacles put low-income youth off the path to college, much as adults are put off the path to saving by bureaucratic details. A study of high school seniors in Boston found that few low income youth make a deliberate choice to not to go to college. Rather, they miss a key deadline, or incorrectly fill out a form, or fail to take a required class, and thereby fall off the path to college.”

— Eddie Roth
5:31 pm May 15th, 2008

This is not exactly surprising.
The more complex the process- the less likely that they want you to really have the money. If you made it too easy, then more students would get the money. This way you can say you are making the money available to all without really doing it.
This is how the insurance companies make bigger profits- by making you jump through hoops to get benefits that you have coming to you. A lot of people eventually just give up- more profits for them…..
Warrantee services is another one- they don’t make it real easy to get services off of a warrantee. 40% of manufacturers rebates are never claimed because the forms are too long or complicated.
Unfortunately many of the students who need this aid are unaware of it or unable to fill out all of the forms. I’ve helped people with the FAFSA, it is a doozy.

— PurpleDude
6:01 pm May 15th, 2008

Okay, maybe I am just “smarter than the average bear”, but I have never spent more than 20 minutes completing my FAFSA each year. I spend more time trying to figure out my ed.gov PIN than in filling out the form itself (which is similar to “what is on line xxx of your 1040″ type questions).

— suzyjax
10:22 am May 16th, 2008

Let me correct a mistaken assumption here, that this is “free money”. In many cases these are loans, not “scholarships”. Certain of these are only available to adults returning to college after having been in the workplace, not new teenage college students.

Even when it is “free money” it seldom is enough to give the student a completely “free ride”.

Lastly, my students are working 35 - 50 hours per week, attending class, and oftentimes raising a family — I seriously doubt any of them think they are getting “free money”.

— RHarnack
12:15 pm May 16th, 2008