Education Proposals Spur Criticism from Officials

President Reagan last eight formally proposed a new form of tax shelter for parents of college students, but the plan received only a lukewarm reception from officials at Harvard and spokesmen for national association representing higher education.

Harvard administrators said they generally approve of additional federally sponsored financial aid for students but that they would endorse Reagan's plan only of if it is not used as a substitute for existing aid programs.

The President's proposal, made in the State of the Union address (see story, column 3), would allow parents to defer taxes on money set aside in special savings accounts that could be drawn on to pay for college tuition.

Reagan predicted that the plan will provide parents with "an incentive to save for their children's schools."

Michael Blurnenfeld '55, Harvard's assistant vice president for public affairs, said of Reagan's to-called Independent Education Account, "We are favorable to the concept but would review it as a supplement, not a replacement to Federal aid."

Seamus P. Malin '62, assistant dean of admissions and financial aid, pointed out that the plan would help middle-income families at the risk of needier families seeing less aid in the future.

Balancing Aid

"A certain part of the population would benefit from these accounts, and I'm not sure that part doesn't already have plans" for financing their children's education. Mal-a said "It's hard to come out against it, but we hope the proposals won't jeopardize current financial and programs."

Both of President Reagan's first two federal budgets included substantial reductions in aid to college students, some of which Congress blocked.

Tentative Response From ACE

The American Council on Education (ACE), a Washington-based association representing more than 1000 colleges and universities, has sounded warnings similar to those heard at Harvard.

Sheldon Steinbach, general counsel to the ACE, said yesterday, "We support [the President's plan] so long as it supplements rather than supplants federal aid."

Details Pending

Although specific details of how the Independenty Education Account will work have not been released, Steinbach said he expects a $50,000 maximum limit per family which could be applied to the tuitions of two children.

Kathy L. Curry, legislative representative for the National Association of Independent Colleges and Universities, a 900-member organization, said her group ill enthusiastically support the President's plan. "We don't think it will be a substitute for other forms of aid," Curry said.