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December 9, 2004
A formula for failure
Many African Americans believe that education is
the key to economic success. In the reconstruction period after
slavery, it was difficult for blacks to have the opportunity even
to go to high school. However, in recent times the gap in the
rate of high school graduation of white and black students has
substantially closed. Now in America’s information and technology
based economy, a college education is required for success.
Census data indicate a direct correlation between an individual’s
income and his or her level of education. In 2001, the median
income of a male high school dropout was $19,434 compared to $54,069
for a man with a bachelor’s degree or more. For women the
difference was $10,330 compared to $33,842.
Since it is generally agreed that one of the goals to improve
the status of African Americans is to build black wealth, the
foundation must be to improve the quality of education. Therefore,
it must be the strategy of black leaders to oppose any policy
of government that will tend to diminish opportunities for higher
education.
The cost of a college education has increased substantially over
the past decade. Even state schools have been forced to raise
their tuition and fees because of inadequate tax revenues and
federal aid. One source of funds students from low-income families
have come to depend upon is the federal Pell Grant. Now Republicans
in Congress plan to diminish its availability.
When Pell Grants were first instituted they paid for a greater
percentage of the cost of college tuition. However, as the cost
of higher education began to escalate, the amount of Pell Grants
did not keep pace. Nonetheless, for many students from low-income
families the Pell Grant remains an important source of funds.
With his tax cuts for the wealthy, the commitment of $75 billion
per year for the war in Iraq and pork barrel projects for his
political allies, President Bush has run up a budget deficit of
$1.3 trillion. There is a need to cut costs. It would be politically
untenable to eliminate Pell Grants, but the Republicans have a
plan to hold down any potential increase in costs.
Between 2001 and 2004 the government’s cost of Pell Grants
rose from $10 billion to $13 billion. The increase resulted from
the growing number of students from low-income families going
to college. Also, the deteriorating economic conditions have increased
the eligibility of some students as their families’ income
has declined.
According to the Office of Management and Budget, the continued
application of the present qualification formula would increase
costs by an estimated $300 million next year. Republican lawmakers
plan to have the Department of Education develop a formula which
would cut costs by lowering the qualifying family income.
It is projected that the new formula would cause about 1.2 million
low-income students to have their grants cut and about 90,000
students, whose parents earn $35,000 to $40,000 per year, to lose
their Pell Grants completely. Such a change would have a harmful
affect on the enthusiasm for higher education of many blacks and
Latinos from low-income families.
African American and Latino leaders must become increasingly aware
of subtle policy shifts that can have dire consequences on the
welfare of racial minorities.
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