Posted on 03/24/2026 1:39:33 PM PDT by karpov
As a general rule, when the government intervenes in free economic transactions in a market, it distorts that market and makes people worse off. We might not see such negative effects as clearly as we can see the benefits to those whom the government directly helps—the negative effects can be broad and indirect. But such disadvantages are real. Short-term Pell grants are no exception.
First, the context: Pell grants provide college students with thousands of dollars per year based on their ability to pay, the cost of university attendance, and the degree to which a student is part-time or full-time. The ideal Pell student is someone who is smart but poor—someone who would succeed in college but cannot afford it.
Unfortunately, however, the Pell program is not effective in determining who will succeed in college. The program provides access on the basis of income but not on the ability to succeed. It doesn’t matter which college you attend so long as you meet that college’s admission requirements. But many colleges have extremely low academic standards for admission or extremely low graduation rates.
Pell students have lower graduation rates than non-Pell students. Partly this is due to affordability hurdles. But Pell students also have lower standardized test scores.
Put these factors together, and it appears that the Pell program massively misdirects resources. Instead, more money should go to a smaller number of better academically qualified students in need—and pay only for college programs with demonstrated success graduating high percentages of Pell students.
(Excerpt) Read more at jamesgmartin.center ...
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I got government grants way back in the 1970s. Graduated with my BS in Chemical Engineering. I have indirectly paid all of it back in my high income taxes. I was a good investment.
Just make colleges handle 100% of the finances. Accept good people. Educate them. Position them for genuinely lucrative careers. Have them pay off their loans with future paychecks. Government should have no involvement.
I got Pell grants for two years to graduate Harvey Mudd (transferred in from a JC).
The government made their money back the first year after graduation.
Put a federal cap on tuition, say 10k per year. Any amount above 10k the school has to finance.
I never got Pell Grants because my dad was self-employed and refused to sign the forms.
My college roommate used his to buy high end stereo equipment.
“we can see the benefits to those whom the government directly helps—the negative effects can be broad and indirect”
No mortgage interest deductions - prices would be lower.
No SALT deductions - taxes would be lower.
No Medicaid/Medicare - medical care would be cheaper.
Excessive Building/Zoning code, environmental mandates, CAFE mandates, Unionized Schools, on and on and on.
We always hear that small businesses are the heroic backbone of the USA. Yet time and again I see the children of the entrepreneurs want to go to college and have nothing to do with the family business. Why is that?
I agree, grants are the way, and if you are a serious student, the govt will make money off your enhanced taxes.
I wanted to go into a science-related field. Not sure I could find that sort of opportunity in the home builders industry. I had 3 other siblings stay with the family business. Are you saying I shouldn’t have had my own aspirations in life, or should I have been stuck where I was unhappy?
I understand what you’re saying. I thought my father would do the same as yours, but thankfully, I had a few teachers in high school who were able to persuade him to sign them. I thank God very often that someone convinced my Dad to sign them.
Most self employed have disdain for college and wage earners but write tuition checks for their kids. It’s a strange world.
There is no Constitutional authority for this.
End them.
L
P.S. My Pell grant paid for my actual tuition, room and board for college, my work study program paid for my groceries and general living expenses.
I paid every cent of my loans back with the interest in 10 years as was agreed upon by me when I signed those papers.
I could never have gone to college where I went without a college scholarship, work study, Pell Grant, and student loan.
My father never paid a cent for my college, and I never asked him to. All I asked was that he sign the papers and let me have a chance to do what I was interested in. And I did. I don’t think my siblings hold it against me.
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