In President George W. Bush’s most recent move to elicit the ire of other politicians on Capitol Hill, his proposed 2008 budget plan includes something in the fine print that may be of serious concern to college students.
In his new budget plan, a tiny provision buried deep in the language of the bill could hurt students competing for financial relief when it comes time to apply for financial aid. The 529 college savings accounts, or “tax-favored investment accounts,” would no longer be used in considering a student’s eligibility in applying for financial aid, according to an article in the Feb. 7 issue of The Wall Street Journal.
This means students with more money will appear to be the same as other students who are struggling financially.
The mantra of those who are critical of Republicans is that Republicans favor the wealthy over the financially strained and this move completely exemplifies that. Students who truly deserve and need financial assistance would have to compete with people who clearly have an advantage over them and are more capable of affording college expenses.
So far, 529 accounts that are in a student’s name (rather than their parents’) are already exempt from examination from the state when being considered for financial aid, according to the article. This leaves students with valid and more serious need for aid competing at an equal level with those who already have an advantage over them.
When assessing who needs aid the most, all financial assets, especially those whose families have allotted to paying for college, should be subject to the scrutiny of the government.
What is more insulting than the Bush administration’s blatant favoritism for the wealthy is that it’s guised in the language of equality. According to the article in the Journal, administration officials claim the new bill would make the way 529s are assessed “uniform and favorable for all account holders.”
But for those without this kind of account who were glossed over and not mentioned in the admini-stration’s comment to the Journal can tremendously impact whether or not they receive financial aid and whether they receive the amount they really deserve because more money will be allotted to those who are financially stable.
Proponents of this clause of the bill argue that people who save are penalized for thinking ahead and beginning an account. While it may be true that some see this as a deterrent to creating a savings account, those who can afford to save extra money and would choose not to on the chance that they might receive financial aid would be foolish.
Financial aid is created to help those who wouldn’t normally be able to afford college to attend a university. This hidden legislative move would only hinder the ability of those who really need the help to become college students and, eventually, college graduates.
Thankfully, other, more obvious flaws in the potential legislation make it seem that this bill will not pass.
