One Last Look at Candidates Views on Student Loans Before Election Day

It's almost election day and it looks like the race is heating up. Before everyone goes out to vote tomorrow, I just want to review the candidates stance on financial aid one last time and make sure everyone has an idea of what is going on.

John McCain views the federal aid application and tax benefits as "too complicated" and as often deterring "eligible students from applying for financial aid." He wants to simplify tax breaks and consolidate aid programs so students can track their options more easily. McCaint has not called for expansion of grant programs like Obama, but he has suggested an increase in the lender-of-last-resort capability of the federal government to back loans. McCain also proposed using community colleges to "retrain displaced workers" but hasn't yet set specific goals.

Obama also believes in simplifying the federal aid system, but also propses The American Opportunity Tax Credit, which would ensure $4000 dollars of college tuition in return for 100 hours of communtiy service. Obama also believes in Pell Grant increases and funding for community colleges. His Community College Partnership Program would attempt to reward community colleges for sending students to four-year institutions.

While all of these are great ideas, there is one problem, the budget deficit. Both candidates proposals, particularly Obama's require money, which the government is short of right now. Obamas tax credit would cost the Treasury an estimated $10 billion, which might not be the best idea with the state of the economy right now.“Whoever wins will not have any money to do anything new,” said Thomas G. Mortenson, a longtime independent analyst of student financial aid program. The bottom line is, even with great ideas, it's kind of hard to get anywhere without the cash flow to support them.