At this writing, the US Congress is hammering out an agreement for the so-called Wall Street Bailout. The amount of money needed to accomplish this is astronomical: 700 billion dollars. That is a lot of money. Even though that amount of cash is not in the US Treasury, the fact that the United States government is in a position to even consider such a thing says a lot for our country. The United States truly has been blessed by God and is the greatest nation on the face of this earth!
That brings me to the subject of this writing: college education. In particular, the purpose of this writing is to discuss grants provided by the United States government to US citizens for the purpose of obtaining a college education. Such grants should be a consistent part of the government's expenditures because those grants will return taxpayers to the United States government within a period of 4 to six years. Therefore, investing in college education grants is wise and prudent and will have great long-term gains.
College education grants are better than student loan programs. College education grants allow college students to complete their education debt free. That means when that grant recipient becomes a taxpayer upon receiving his or her first paycheck, that recipient will not be encumbered with debt. The current situation involving the mortgage crisis should be ample warning to all about the dangers of debt. It would be interesting to find out how many persons who defaulted on home loans were also paying off student loans. That information might be a real eye-opener. For its 4 to 6 year investment, the United States government could receive 43 to 45 years of income through payroll deductions. That income is compounded if the grant recipient becomes and entrepreneur and provides jobs for other people. This is a great return on investment (ROI) to the United States Treasury.
College education grants also provide an immediate stimulus to the US economy. College education grant money is paid directly to colleges and universities. Those schools use that money to maintain and operate themselves. That means they have to buy goods and services. So the money immediately passes into the US economy. College loan programs also provide an immediate economic stimulus. However, what those loans provide up front becomes a heavy drag at the end. College loans do not provide for a healthy economy.
If the United States government has to make a choice between eliminating college education grants and other government programs, college education grants should be maintained as a top priority expenditure. For the US government, college education grants are a wise and prudent investment.