Traditionalism & Economics

University Funding and Financial Aid

 

University funding is an important factor that students should consider when deciding which college they should attend. Funding plays an integral role in the dispersal of financial aid which is critical for many students entering universities. There are many students who wouldn’t have the opportunity to attend college without the help of financial aid. This paper will first consider the role that technology plays in financial aid offices and its affect on students seeking assistance in paying for a higher education. Next, I will examine the policy of the The Regents of the University of California regarding financial aid for students. The paper will further address the role that Governor Arnold Schwarzenegger’s funding cuts have had on financial aid from the viewpoints of the University of California President, Robert C. Dynes, Lesli A. Maxwell from The Sacramento Bee, and from the University of California students themselves. Each perspective will provide insight into the role of university funding in financial aid.

When students seek financial aid they expect to speak to someone who can give them personalized attention to help them achieve a higher education. In “Balancing Technology and the Human Touch in Financial Aid,” Kathleen Gibbons shows that this personalized attention is not always an option for students in need. Gibbons describes,

By choice or by force, over the last few years financial aid offices have become increasingly automated. This is partly a result of electronic reporting requirements for schools that receive federal funds, and also the explosion of software tools that do everything from need analysis to packaging to entrance and exit counseling.

Due to technology and the universities’ need for federal funding, there has been an increase in computer use for financial aid and a decrease in personal attention. This transition from personal contact to automation can be detrimental to students seeking aid because often these students have particular needs and situations which require special attention. Students want to feel that they can talk to someone about their financial problems and if they are denied the “human touch” these people may feel isolated.

Although Gibbons does acknowledge that “technology has improved and streamlined many of the computational and processing-related tasks that financial aid administrators previously did by hand,” she also stresses that this does not mean that we should forget about the importance of human aspects in financial aid. Gibbons states that

we should remember the fundamental, human aspects of providing access to higher education and financial aid services to students. Critical thinking, empathetic counseling, and professional judgment may be enhanced by technology, but they cannot be replaced by it.

When it comes to the important issue of getting the funds for students to attend a university, it is important that they are treated like human beings on an individual level rather than just like another number in the computer. Finding a balance between technology and personal attention is critical in helping students achieve their dream of a higher education.

When trying to reach this dream of receiving a college degree, many students research financial aid opportunities by going directly to the source. In the case of students applying to the University of California schools, this source would be “The University of California Financial Aid Policy,” written by the Regents of the University of California. On this official website, the UC Regents discuss the criteria and policies for students who need financial aid. The source of this aid is intended to be shared by the University in partnership with the State of California. The UC Regents’ policy states that

The University’s goal is that the cost of attending the University will be met through a combination of the following: a manageable contribution from family resources, based on the family’s financial strength; a manageable contribution from the student in the form of loan and/or work; and grant support from a combination of Federal, State, University, and private sources.

The intention of this policy is for students to pay for college with help from varying sources without relying solely on the University or state to cover the expense. The policy does seem reasonable for students to obtain financial aid in its ideal form. However, with the recent funding cuts made by the California government, and the budget cuts made by the universities themselves UCLA Budget, there is more pressure on students to find resources outside of the university and state. This stress makes it difficult for many qualified students to attend these universities because often their families cannot give any substantial help in paying for college and the student cannot bear the burden of paying the tuition on their own.

In a newsletter to the faculty and staff of the University of California, on “Our University,” the UC President, Robert C. Dynes responds to Governor Schwarzenegger’s proposal for university funding cuts for the 2004-2005 fiscal year. Dynes acknowledges that the state faces a massive deficit and that the governor is forced to make difficult decisions. However, he

think(s) it also is important for the public to know that the cuts being proposed for UC, coming as they do on top of deep previous budget cuts, will have a very real impact on what this institution is able to accomplish for the people of California.

This “real impact” will certainly hit the students applying to University of California schools who need financial aid. The funding cuts will make it increasingly difficult for qualified students of lower class status to attend UC universities. Therefore, it becomes even more difficult for the Regents of the University of California to carry out their policy regarding financial aid.

Following the UC President’s newsletter on the UC Regents’ official website, there is also an article including the University’s full press release on the governor’s budget proposal. In “Governor’s Budget Proposal Cuts UC System,” the Regent’s office discusses the impact that the cuts will have on the university. “The budget proposes a major curtailment of financial aid for UC students.” In fact, the proposal from the government includes “a new fee revenue that UC directs to financial aid from 33 percent to 20 percent.” This cut will greatly reduce the number of lower-class and some middle-class students trying to attend the UC schools. It is unjust that students from some middle and certainly upper-classes will be able to attend the universities when their lower-class counterparts will be unable to pay for their higher education. Moreover, in addition to financial aid cuts, there will be a ten percent cut in UC freshmen enrollment, a cut of five percent in funding on faculty which will in turn affect class size, an increase in student fees, and much more. Considering the effects that this proposed plan will have on incoming students, I don’t see how President Robert C. Dynes can say, “In his State of the State speech, Gov. Schwarzenegger said he is optimistic about the state’s future and wants to ‘expand the dream of college’- which I think is very encouraging.” Instead of being encouraged, the President along with the rest of the people of California should be very concerned about the education of our highly qualified and deserving students.

Lesli A. Maxwell from the Sacramento Bee also comments on the consequences of the funding cuts to the UC system, in her article “UC regents get grim details of governor’s budget plan.” Maxwell reflects the concern that many people have (or should have) about the UC funding cuts. She reports that “The governor is pushing to close the state’s $14.4 billion shortfall without raising taxes and has asked the University of California and California State University to raise fees, shrink enrollment and rein in financial aid as part of the solution.” By not raising taxes, the governor is ensuring that his voters (mostly middle to upper-class Republicans) continue to support him, while his policies increase fees and take away financial aid from college students who incidentally don’t make up a large part of the voters in the state of California. The governor is pandering to those who most likely will vote at the expense of students who are trying to achieve a higher education.

Not everyone is sitting quietly while the governor executes his plans. In his article for the Daily Bruin “UC students petition university funding cuts,” UCLA student Charles Proctor describes the student activism that is taking place in response to the governor’s proposal. He reports,

Several students and the University of California Student’s Association, a system-wide lobbying organization, brought a lawsuit against the Schwarzenegger administration, alleging that millions of dollars in midyear cuts to the UC were made illegally.

The students are fighting the cuts because Governor Schwarzenegger bypassed thestate legislature when making this decision. This action is seen by these petitioners as being illegal. The students who brought forth this lawsuit further contend that these cuts will “restrict access to higher education for minority students.” Because minorities are overrepresented in the lower class, the university funding cuts that will decrease financial aid will therefore have a drastic affect on these students trying to attend UC schools. A college education is so important for the future of young people that these cuts could have devastating effects on many students’ lives. The action that this specific group of students is taking to fight the governor’s proposal shows the importance that unionization of UC students can play in the future of higher education.

University funding and financial aid has a huge impact on students’ lives across the country. The strain of paying for college plays a particularly important role for students in the state of California. The public universities in California are unique in that they must now deal with Governor Schwarzenegger’s recent funding cuts. In order for financial aid offices to better serve the students of California, they will need to increase personalized attention with those seeking financial help and most importantly, they will need to fight against the governor’s proposed cuts to financial aid. If we try to protect students’ access to financial aid, we will be helping highly qualified and deserving students achieve their dream of a higher education.

 

Related Links

Benderly, Beryl Lieff. “The State of Public University Funding.” Next Wave Science
Magazine. 6 February 2004.
http://nextwave.sciencemag.org/cgi/content/full/2004/02/04/8.

Daily Bruin Editorial (UCLA). “Education is unfairly hit by the ‘war on drugs’.” The
Round Up: The Student Voice of New Mexico State University. 15 October 2001.
http://www.roundupnews.com/news/2001/10/15/Opinion/
Education.Is.Unfairly.hit.By.The.War.On.Drugs-127649.shtml
.

Finaid Organization. “Federal and State Student Financial Aid Programs.” 1 October
2003. http://www.ucop.edu/pathways/finaid/RC_GCS_FA.html#Cal.

Lesko, P.D. “Success Versus Access in Higher Education.” Adjunct Nation.
January/February 2004.
http://www.adjunctnation.com/magazine/article/?id_article=335.

Simons, Dolph C. Jr. “Proposed index could offer guidance on university funding.”
Lawrence Journal-World. 25 August 2001.
http://www.ljworld.com/section/saturdaycolumn/storypr/63899.