There are certainly hidden messages that the law makers in Washington DC tried to convey to both US colleges and loan borrowers. Even though the law makers may or may not realize the positive impacts of cutting the Pell Grant and despite the fact that many young people are unhappy on recent Pell Grant policy changes, there are, however, a disguised grand positive objective from the US’ point of view. Reducing funding and grants is the first step to accelerate the process of restructuring the crippled industry. With so many parties taking advantages of the student loans in negative ways, that have created public outcries and may cause the Uncle Sam goes bankrupt. There are no other ways for the policy makers to re-engineer the outdated system without taking drastic changes such as to turn the lifeline off.
Cutting the Pell Grant is a beginning step to remedy the inefficient system. Right in this moment most important players in the industry seem not to care much on what is happening. People are giving up. Rather than trying to fix the system, they take whatever advantages that they can get. There is no sense of responsibility anymore. Rather, everyone is trying to max out their own (personal) benefit in expense of others, the tax payers. The institution becomes a vehicle (distribution center) where public money is taken then distributed among the peers. Smart people called it collegial system.
Squeezing the funding, one of the most important lifelines is a strategic move in effort to restructure the industry. All institutions will feel the pinch, but the ones that got chocked the most are the worst performers, the most inefficient organization in the system. This industry has attracted many politicians, businessmen or women to become school administrators as they retire or close to retire from politics or non-academic world? There got to be reasons why college president position is so attractive for many of them? Sad to say that their salary and benefits may have been funded partly by student loans, public money or indirectly grant money from the Uncle Sam. Reducing the availability of funding and grant indirectly serves two purposes. To get rid of both the bad apples and rotten oranges.