Same Old Doubletalk

IN HIS FIRST State of the Union address two years ago, Ronald Reagan listed the economic ills plaguing this country and boldly proposed his solutions. Now, after two years of further economic deterioration, the president whose grand plans are largely to blame has been forced to use rhetoric to reconcile two conflicting impulses--stick to his ideology and aid the economy. That strategy came through clearly in Reagan's third State of the Union speech, delivered last Tuesday, as the president urged the government to "take the lead in restoring the economy," but simultaneously called for a spending freeze while continuing to protect defense spending buildups. And the same executive doublespeak strongly marked the president's new approach to student aid.

Recognizing the need for the federal government to help those aspiring to higher education. Reagan proposed the establishment of Independent Education Accounts designed to provide parents with "an incentive to save for their children's schools." On the surface, the idea is a good one, helping in part to make amends for the huge chunks chopped out of student-aid two years ago. But a deeper analysis shows that the program offers very little to those who need it most.

First, the plan offers very little money to those able to take advantage of it. It merely allows parents to deposit up to $1000 a year in a special savings account, in which the interest accrued--not the capital deposited--is tax-exempt. A Treasury Department official estimates that for a family earning $30,000 a year with two college-bound children, the benefits over six-years would be about $750 a child.

And that assumes that a family actually has the $1000 to set aside each year for what may take place six years down the road. As an official for a Washington-based lobbying organization noted earlier this week. "There aren't many families in the $15,000 to $20,000 range who can afford to save that much each year."

One could argue that the proposal, which is currently before Congress, can't do any harm. But that presupposes that it isn't used to supplant direct grants to those in need. The White House, in a statement accompanying the plan, indicated that the account is designed to shift dependence from grants to loans, and the estimated cost of $300 million for the first two years can be considered taken from direct aid.

Reagan has proved repeatedly throughout his term that he is out to reduce student aid. His latest proposal, while it sounds nice, is merely sweet icing for the same stale, bitter cake.