editorially speaking The Way We Were; The Way We Will Be In the past we have discussed on these pages some of the subtle changes in the educational system that are bound to have profound effects on the way that system will operate in the future. The changes in the way higher education is funded are already being felt in certain areas. Much discussion has been focused on the changing funding patterns of government agencies and their effects, for example, on research and certain aspects of the educational processes associated with research, such as fellowships. However, the larger picture, which includes undergraduate students, has undergone dramatic changes that may well have longer range implications. A recent Department of Education study indicates that college students are borrowing a lot more money to pay for their education today than they did in the past. In fiscal 1990 they borrowed $12.3 billion; estimates for the current year suggest that students will borrow $24.3 billion. In other words, the amountguamnteed by the federal governm e n e o r lent directly under the new Direct Student Loan Program-to help students and their families pay for college expenses has nearly doubled in the last five years. In the same period, the number of federally subsidized loans made to students and their families iumoed bv almost 50%,from 4.5 million in 1990 to a proje&ed 6.6 milion this year. This federally subsidized student loan program, which stands apart from the Pell Grant Program, guarantees any eligible student the right to borrow money. It is, in a sense, a n entitlement program, whereas the Pell Grant Promam is a discretionam leavine the neediest . promam, . students a t the mercy of the annual approsations process. In 1990, roughly two dollars were borrowed for every dollar awarded in the form of a Pell Grant, and the Department of Education estimates that the loan-to-grant ratio will rise to 3.8 to 1. The huge increase in student borrowing, in effect, reflects a basic change in the American philosophy of higher education. The long-held idea that the adult generation would pay for the post-secondary education of the next generation through the support of public colleges and universities has been overturned durine the recent uast. "Let the beneficiaries pay" has become apopular r e f k n a t all levels of government. Many financially pressed state legislatures have forced these publicly supported institutions of hieher education to increase tuition sharplv and to create new fees in recent years, which in turn has forced students to borrow more and more. The Administration recently announced a new repayment scheme for student loans under which students would have a choice of four repayment schemes: standard, extended, maduated, and income-contingent. These plans do not regace the students' repayment obligations, but they may help ease the burden of repayment. The recently proposed "Contract with America," endorsed by many House Republicans, would eliminate the so-called inschool interest subsidy, which amounts to forgiveness of the interest on most federal loans while students are enrolled in college. The Republican proposal would instead
allow interest to accrue and be added to the balance due when the borrower starts repayment. This is not a new idea, hut it would be costly to students. Most borrowers would see their indebtedness increase by 20% or more if this proposal were to be adopted. The point here is not to make a judgment on any of the possible actions, but to recognize that the tide is running more strongly toward the philosophy of letting the beneficiaries pay. The educational svstem is bemnnine to feel the effects of this cost shifting too. For example, &dents are likely to work more than ever in an effort to minimize their indebtedness, so part-time enrollment will continue to grow. In other words, there is likely to be a greater number of students on a campus, i.e., a larger total enrollment, for an unchanging number of contact teaching hours. This will lead to new pressures on resources, for example, the frequency with which courses are offered. Such problems rnieht be uartiallv alleviated bv tinkerine with scheduline. buFin m k y case; this card has already
