‘House Ways and Means Committee' Hearings 2016: Use College Endowments As Academic Aid? [VIDEO]By Michael Lagura, UniversityHerald Reporter
Due to the high demands for cost in the higher education, the House Ways and Means Committee conducted hearings in September 2016 and the results pointed to college endowments as academic aid. Academic experts instead, diverted the attention to available government budget allocations since these endowments are the best universities have so that relying on them would only add burden to the universities and therefore raise tuition costs, rather than lower them.
During the hearing that took place in the last weeks of September 2016, hearing Rep. Peter Roskam (R-III), chairman of the Ways and Means Committee raised the potential of the tax code to gather donations from investors and eventually got half of the response the representatives. He further added that it was possible, could the committee raise donations for scholarships in most universities using the tax code, Huffington Post reported.
Right after the first hearing session that day, the figures were drawn on the table and the committee immediately tasted the backlash of involving supped-out donations from university. One major consequence stood out- higher tuition cost. By all means, the college endowment packages ought to be left alone.
Alongside the discussions that transpire in the hearing, the bill H.R. 5719 for employees was also approved by voice note. As economic analysts would put it, such bill and other legislation forms, if strengthened to its fullest, can ultimately help the higher education plans.
The employment concerns are not that much far-fetched from the academic concerns. The endowments, the analysts added, is only a small manifestation from a university's academic success. In turn, it is the best a university has got. Therefore, it should be left alone and untied from the tax code Rep. Roskam has been making fuss about, Morning Consult stated.
But the big question yet remains: how do donations really increase scholarship tuition rates? Global investment is indeed the most plausible solution. However, having to involve the use of tax codes is an entirely different story.
What if tax codes are constantly tapped into? Simple. The tuition costs rate required per college shall also dramatically rise. Thus, the bottom-line is a very high tuition cost at the helm of the higher education stabilization.