Financial Aid:
Welfare for the Rich, the Poor, and Schools?

to Education Libraries 8/9/22  

For the Wealthy

Four year American Opportunity Tax Credit
for qualified higher education expenses apply to most taxpayers.

Eligible student include individuals and a spouse or dependent claimed
as an exemption on a tax return.

Maximum annual credit of $2,500/student for those with modified adjusted
gross individual income of $80,000 or less and $160,000 or less for married couples
filing a joint return.

The credit is phased out for taxpayers with incomes above these levels.

Forty-percent is refundable so taxpayers not owing taxes can get up to $
1,000 in cold cash or hot cash depending on you outlook.

Lifetime Learning Credit

$2,000 tax credit for qualified education expenses paid for all students enrolled in eligible educational institutions with no limit on the years so this is particularly helpful to graduate students, students who are only taking one course and those who are not pursuing a degree. Did this extend the traditional bachelor's degree from six years to seven, eight ...?

Some students are attending school for the money and quickly drop out and keep the grant money. Only the academically gifted and ambitious earn complete a degree. Others stay enrolled for something to do and spending money with little chance of failing because teachers have many reasons for not flunking them.

In  2010 USA Today reported that between 2004 and 2008 states apportioned $6.4 billion to institution for the education of students who had not returned for their sophomore year. In addition, state and federal grants of $1.4 and $1.5 billion dollars went to students who did not return for their sophomore year.
Federal Supplemental Education Opportunity Grant of $100 to $4,000 are administered by approved schools depending on need. Work Study is hourly work administered by schools.




For the Not Wealthy

Lake County CC in Leesburg Florida reports.
1) Pell Grants for the needy were $5,500 per year. ($6,895 in 2022)
2) Fulltime tuition was $92 per credit x 24 credits = $2,208/year.
3) Balance was $3,292 was available for student expenses.

After teaching and selling Quick Notes Programmed Textbooks
at both two and four year colleges I knew that about half
of the the students bought new book. Some didn't use books.
Others were eventually dismissed for lack of attendance.

By 2015, tuition was up $360 while PELL grants were up $275.
In addition, Lake County CC was Lake County State College.
I also asked if there were other grants.
Answer, yes, our state also has mostly need grants.

PELL Grants of up to $5,775/year
for those with Financial Need

Grants Not Well Spent
It is an outrage that we saddled several million students with loans to enroll
in untested online programs, that seem to
have offered no labor market value.

It is an outrage that our lending programs  encourage schools like USC to charge $107,484 (and students to blithely enroll) for a master’s degree in social work (220 percent more than

the equivalent course at UCLA) in a field where the median wage is $47,980. It’s no wonder many borrowers feel their student loans led to economic catastrophe.

The federal government  gutted accountability rules; treated online programs as if they were the same as traditional brick-and-mortar schools; extended credit to students and parents well in excess of financial need or ability to pay; and raised and then eliminated limits on loans to parents and graduate students, allowing many to accumulate eye-popping, unpayable amounts.  The government allowed—and often encouraged—people to make bad choices.

A better way to provide relief to student loan borrowers 4/19





The More Government Spends, The More Tuition Went Up
with college financial aid warded to most desirable students.


Obama Wants to End VA Exemption from 90/10 Rule.

The VA  announced that 17 for-profit colleges have failed the 90/10 rule, which states that for-profit colleges may not derive more than 90% of their revenues from federal student aid programs such as Pell Grants and direct loans (collectively called “Title IV” funding). Violators of the rule for two consecutive years will lose access to Title IV.

The Department of Veterans’ Affairs and the Department of Education found that including veterans’ benefits in the restriction would increase to 200 the failing for-profit colleges. The 90/10 rule applied to all colleges would provide a useful safeguard against schools relying on government programs  to finance academically and motivationally average students. Lobbyists be able to stop this Obama proposal.


Recent Efforts to Modify the 90-10 Rule

With again increasing scrutiny of the for-profit school industry, the 90-10 rule has again become controversial. Many advocates are pushing efforts to modify the 90-10 rule.

Few Graduate from AA Programs

BS Success Rate Gets Better as Students Get More Academic

Include Military and Veteran Benefits in the 90-10 Cap


Efforts to make this change continue. In November 2015, Senator Dick Durbin [D-IL] introduced legislation to include military and veteran benefits in the 90-10 cap. The bill remains stuck in the Senate Health, Education, Labor and Pension Committee.[13]

President Barack Obama expressed support for the bill shortly after its introduction.[14]

In 2015, Secretary Hillary Clinton expressed support for the inclusion of military and veteran education benefits in the 90% cap.[15]

Reduce the 90-10 Cap to 85-15

If military and veteran benefits were included in this lower cap, the Center for Investigative Reporting found that an additional 292 schools would fail this lower standard.[12]

The change was included in the stalled Protecting Our Students and Taxpayers Act of 2015, introduced by Senators Dick DurbinJack ReedElizabeth Warren, and Richard Blumenthal.[13] 

In his 2017 Budget proposal, President Obama requested that the cap be lowered from 90% to 85%.

The Ball is now in President Trump's court.

Economic Rewards Low for Many Graduates


Federal Government Helps Big-time

U.S. Student Loan Explosion


On 30 March 2010, President Obama signed the Health Care and Education Reconciliation Act of 2010,
which resulted in the U.S. government taking over the student loan industry from the private sector.

President Barack Obama signed a law Tuesday that he said will end subsidies for banks that guarantee federal student loans, saving $68 billion over 11 years by making loans directly through the U.S. Department of Education. 

The overhaul of the student loan industry is part of the Health Care and Education Reconciliation Act of 2010, which was passed by Congress to reform the nation's health care system. 

According to the White House, starting July 1 all federal student loans will be direct loans administered through private companies that have performance-based contracts with the DOE. 



* Amount spent by the college to educate first-year undergraduate students (first-time, full-time) who did not begin a second year.
** Median starting pay data presently available for 949 of the 1,576 colleges featured on this website. 

Epilogue  Those in favor of governments programs have no interest in cost effectiveness.


Smaller Schools Need Financial Aid to Attract Students

Editor's Note: While data shows that AA graduates earn about 50% more than HS graduates, recent data indicates that first-year top AA earners make about $40,000 and those at the bottom less-than $20,000 annually. Source Is College Economically Worthwhile?



Graduation Rates and Employment for Familiar Colleges.

Achievement Rates
Those wanting to view additional schools or latest data should visit

University of NH
 where lived
Saint Anselm
 local private school in NH
Marietta College, Ohio
Earned BS
S N H U 
 private college 
taught there

Franklin Pierce University 
worked for
25 years

Goal Strategic Measure            
Completion and Progression Graduation Rate 97 78 74 63 59 49
First-year retention rate 97 86.0 88 75 73 63.0
Efficiency Cost/student (FTE) $84,000 14,900 25,500 23,800 13,731 19,000
Productivity Cost per degree $264,000 57,500 125,000 107,000 49,679 62,000
Cost of attrition* $4.0m 6.1m 1.7m 2.2m 3.5m 2.8m
Gainful Employment Student loan default rate 1.5% 2.1 1.4 4.3 5.1 4.7
Ratio of student loans payments to earnings per recent graduate** 2.9%
11.2%12/21/16 No Data
No Data
No Data
* Amount spent by the college to educate first-year undergraduate students (first-time, full-time) who did not begin a second year.
** Median starting pay data presently available for 949 of the 1,576 colleges featured on this website. 

Epilogue  Those in favor of governments programs have no interest in cost effectiveness.


Source Why College Tuition is Not Going Up Rapidly

Distribution of Federal Support for Students Pursuing Higher Education in 2016




"How to get your student loans forgiven"

by Peter Wylie on Aug 4, 2015, 10:35 AM



There is more than $1.3 trillion in outstanding student loan debt weighing down personal balance sheets for recent (and not so recent) college graduates. Fortunately, there are many state and federal programs that help people manage this loan burden by getting part of their student loan debt forgiven

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is the largest forgiveness program. It is a federal government plan available to you if you have federal student loans and are Working for a qualifying institution anywhere in the US.

You qualify for PSLF if your employer is any level of government organization, any 501(c)3 non profit, or a private company that provides public services. The full list is provided by, and Gradible’s student loan evaluation tool can help you determine if your organization qualifies.

To participate in PSLF, you also need to have federal loans issued through the Direct Loan Program. Federal loans issued through the FFEL program (prior to 2010) or Perkins program loans, private loans, and Parent PLUS loans your parents took for you unfortunately do not qualify. If you have FFEL and Perkins government loans, you can consolidate these loans into the Direct Loan Program at no cost to gain eligibility, just be sure not to consolidate any Direct Loans you already have, because you would lose qualifying payments on those loans. The final step to PSLF is being enrolled and making payments on an Income-Driven repayment plan, because you can only receive the PSLF benefit after you have made 120 qualifying payments (ten years) on your student loan.

If you meet those 3 broad qualifications, you need to file a Certification of Employment to demonstrate that your employer is in fact qualifying. All qualifying payments you have made after July 1, 2007 count toward your 120 needed payments, so the first people eligible for PSLF can claim their benefits in August of 2017.

State Level Forgiveness

Many states offer programs that provide an annual amount of debt forgiveness for specific types of jobs that are in high demand and benefit the community. New York is even beginning to offer its “Get on Your Feet” plan, which covers the income-based federal student loan payment for state residents making less than $50,000.

Not all states offer student loan forgiveness, but those that do tend to focus on occupations in health services, education, social work, veterinary services, and legal work. Gradible offers a comprehensive list of state level student loan forgiveness plans in our student loan evaluation tool. To claim state level benefits, you need to fill out an application with your state’s higher education authority and follow any additional instructions they provide.

Perkins Loan Cancellations

Perkins Loans are loans made by colleges and universities to students with financial need. These loans are eligible for cancellation if you are employed in a public service field, such as education, active duty military, health services, and public safety, among others. If you think you might be eligible for Perkins Loan cancellation, check out the full list here.

Military Forgiveness

The National Guard, Army, the Air Force, and the Navy all offer student loan forgiveness options for those serving who have student loans. There are also additional programs for former servicemen and women who enter the health services field. As mentioned previously, if you served in the military in active duty, you are also eligible to have your Perkins Loans cancelled.

Income-Driven Repayment Forgiveness

Finally, you can get your remaining balance on your student loans forgiven after 20 to 25 years of on-time payments on an Income-Driven Repayment plan, such as “Income-Based Repayment” or “Pay As You Earn”. Any amount you have left after paying for those periods will be eliminated, but keep in mind that the balance forgiven will be treated as taxable income."

Walter Antoniotti, creator of the
Free Internet Libraries,,
author of the free Quick Notes Learning System books series, and President of 21st Century Learning Products
which enhanced his extensive college admissions experience with an education concerning the college book
business and home schooling.