Should the Government Restore Federally Subsidized Grants and Scholarships? Essay

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Should the Government Restore Federally Subsidized Grants and Scholarships?

Introduction (Attention Getter)

Should the Government Restore Federally Subsidized Grants and Scholarships?

The Congress could reduce the growth in GSL program costs in a number of other ways that would not seriously jeopardize the availability of loan capital. One option would be to require that interest be paid on the loans while the students are in school, which would reduce GSL costs by §0.4 billion in fiscal year 1982 (CBO 1981).

In early nineteen eighties, the Government had announced to officially cut the allocated budget for educational loans, grants, and scholarships in order to increase the Federal budget savings and effectively decrease costs. The federal government deemed it necessary to do such budget cuts in order to pay off other federal expenditures that had risen in the previous years.

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The government had studied and deliberated that by cutting grants and scholarships given to the educational sector would benefit other federal sectors. The digits that they had to deliberate and work with were the monetary value of the Dollar in the eighties and the current status of the economy at that time. What the government did not perceive was the rate influx of inflation and as well as the projected value of the Dollar in the coming years.

(Stated Issue)

            It has been more than twenty years and the 1982 federal budget cut still stands, and recent developments that the federal government plans to further reduce the allocated budget towards the loans; grants; and scholarships in the educational sector. With the Dollar weakening against current economic crises and other influences in the world market and even the increase of costs to attain a sound education, the average student (even those who are well financially capable) are having difficulties in receiving quality education and financially supporting themselves (NCPPH 2002).

Body (Build on issue/Present Solution/Benefits)

Requiring students to pay interest while they are in school could, however, impose a significant burden on them. Many students, in fact, would probably increase the amount they borrowed to pay the interest costs (CBO 1981).

            Average students who are in various colleges and universities, whether state-owned or private, are now buried in debt due to the lack of federal funding for grants and scholarships. To compensate the lack of funding from the government, most students borrow from various financial organizations to make ends meet. Those students who come from middle-income-families are extremely hesitant to further their studies as they are fearful of being in debts or a fear that they can ever repay their debts.

(Present Solution)

            However, certain states have allocated funds in order to curb budget deficits which has been brought on by the federal government have been ratified to accommodate and assist it’s students and grantees, forcing various educational institutions and organizations to increase their tuition fees. Actions have been made by various states to support public education but due to the recession that the country is in tuition therefore has increased as well responding to current status of the economy (NCPPH 2002).


            Widespread and drastic tax cuts should be implemented for all citizens of the country. To give a tax break as well as a tax shield, especially to those families and students who have a member and/or who is currently studying in publicly and privately owned educational institutions. By giving tax breaks and tax cuts to all Americans, this would enable them to not only cope up in paying-off student loans as well as paying off high tuition fees. Those who have completed their education would be able to lessen the amount of time to pay off outstanding debts incurred during their education.


            Educational institutions should also actively search potential trustees to fund educational programs. This would open up more possibilities and vacancies as well as increasing the scope of those who are eligible to be a grantee or a scholar. Every citizen should work hand in hand to achieve a common goal. Income tax revenue is steadily coming in and a tax hike is not an answer for the federal government to increase the educational budget. The federal government should not cut corners but strengthen the economy.


Congressional Budget Office (1981, February 21). Testimony on Reducing Federal Spending

      for Student Aid. Retrieved on March 14, 2008, Retrieved from

The National Center for Public Policy and Higher Education (2002). Profiles of American

      College Students. Retrieved on March 14, 2008, Retrieved from

Free Should the Government Restore Federally Subsidized Grants and Scholarships? Essay Sample


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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 27 February 2017

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