Linking Students’ Future Income To Student Loans: Part II

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Yesterday we has discussed if this idea is viable.  It seems great ideas, but actually not.  During the hearing, one of the professionals who testified presented a table that shows the break-down of cash inflow and outflow.  The Association has a chance to analyze his number.  As attached, we share to the American public our analyses side-by-side with what has been presented on the Senate floor.  Taking all his numbers as they are, here what we found:

  1. Unfortunately, the person has made a simple mistake when calculating the total cost of education.  We are all humans, and sure, humans make mistake.  However, with this simple table & calculation, and considering how important the testimony will be and how will it impact community college students in this country, the error seems to be significant.  We are wondering if any of his staff, anyone in the Senate floor, anybody at the American Association of Community Colleges or anyone at Senator Lamar’s office noticed such an unfortunate miscalculation before, during or after the Senate hearing? Wow…
  2. We hope the intention is not to understate the cost of education, but an honest calculation error.  Considering the table was prepared in some sort of spread sheet, making such a mistake will be very rare?
  3. One can infers that if mistakes were made in a simple calculation, what will happen to institutions that have to manage bigger budget?
  4. Partly, based on his study/table, he has suggested the Congress to increase the federal funding?
  5. It seems that part of the taken student loans have been used to cover the living expenses?  AAEA thinks this is more important issue to be solved?  Despite DOW has increased about 5000 points under the new administration, there are people experiencing difficulties to meet they basic needs?
  6. The Pell number surely has covered the total cost for education ($6,000.00 versus $5,211.00).
  7. We are wondering if the Fed Loans such as Pell should also cover students’ living expenses?
  8. It seems that his testimony is not consistent with the intend of the hearing related to simplifying the student aids process.  Rather, asking more aids?  So, it is really a different place for that and the timing may not exactly quite right as well.