Posts Tagged ‘federal student loans’

DREAM Act & How it Affects Upper Middle Class


2010
12.30

The Development, Relief and Education for Alien Minors (DREAM) Act was originally introduced in the US Senate in 2001.  It was shot down again in December 2010.  What is the DREAM Act and how does it affect upper middle class (UMC) students and their parents?

The DREAM Act provides college and citizenship options for children of illegal immigrants.  Children qualify by having moved to the US before age 16.  They must have graduated from a US high school or earned a GED.  In order to receive conditional permanent residency, children must complete two years in the military or four years at an academic institution.  After two years, a six year temporary residency period is imposed, but only if the child earned a degree, enrolled in a Bachelor’s program for two years or served in the military for at least two years with an honorable discharge.


Children of illegal immigrants would be allowed to take out federal loans and participate in work study under the DREAM Act.  They are not eligible for government grants or scholarships.

Illegal immigration is quite a hot topic and it’s becoming even hotter as illegal immigrants attend American universities.  In California, this topic is scorching due to a recent ruling by the CA Supreme Court, which now allows illegal immigrants to receive in-state tuition prices.

Many people are scathing mad, including UMC parents and students.  The taxpaying citizens of the UMC do have a right to be upset.  Their financial aid woes are being ignored while illegals receive college benefits.  We can’t imagine how the citizens of California must feel, especially since it’s a nearly bankrupt state.

What does this mean for the UMC?  Technically, it could lead to dire consequences because more money will be given to the 65,000 children of illegal immigrants who graduate from American high schools each year.  For example, work study jobs are extremely hard to get right now because funding was cut so drastically.  Can you imagine if an illegal immigrant got a work study job over your kid, a taxpaying citizen?  Talk about unfair.

It seems that illegal immigration and financial aid woes are being inextricably linked.  What will the UMC do about it?  It’s one thing to allow illegal immigrants to live in your area.  It’s a whole other ballgame to let them take away college financial aid.

What do you think?

~ the WPC team

Source:

Williamson, Jennifer.  “The DREAM Act: What it Could Mean for Immigrant Students.”  Distance-Education.org, December 27, 2010.

Student Financial Guide

© White Picket College, 2010 – College Funding for the Upper Middle Class

Peter Schiff on the Feds & Student Loans


2010
05.28

What does economist and popular video blogger Peter Schiff say about the federal government’s influence on student loans?

Please watch this video: Peter Schiff on college tuition

Schiff says that colleges would not hike tuition if federal government loan programs did not in exist.  In other words, if there were no federal government student loans available, the colleges could not increase tuition.  Thus, the feds give the colleges the right to jack up tuition to astronomical proportions.

What do you think?

Schiff also says that the value of a Bachelor’s degree is now lessened because virtually anyone can receive this degree.  Thirty, forty years ago, a Bachelor’s degree meant something.  Schiff says to be competitive you now need a Master’s or a PhD.  That means years in school and years of student loans.

There is one point in particular we’d like to comment on: Schiff states when his father was in college, he worked summers as a waiter and that was how he paid for school.  Although we agree with this work ethic, Schiff must understand today’s world is very different.  College students are now expected to work at unpaid internships for forty hours or more a week.  This internship is expected to lead to excellent contacts and a job after graduation.  Yet in this deep recession, students are not receiving these job offers after graduating.  So all of that hard work and time gone into an unpaid internship is not being compensated in the end.  The Catch-22 is students need these internships on their resume.

Another hard fact of this economy is summer jobs are few and far between.  Full-time workers are now taking these extended summer hours.  And with state budget cuts, municipal swimming pools and daycare programs are now being cut.  Thus, the college student on summer break has little opportunity to make money.

Let us know what you think of Schiff’s commentary.  Are the feds really to blame for this college financial aid crisis?  Do you foresee the cost of college to keep rising until it’s simply not affordable for anyone except the very wealthy?

Please click on these two article titles for more information on this subject:

Unpaid Internships, The Future

Future of Tuition

Thank you for all the continued support as WPC.  Please keep writing us and suggesting what you’d like to see on our site.  Have a wonderful and safe Memorial Day weekend!

~ the WPC team


© White Picket College, 2010