'G.I. Bill': A Spin on College Funding

NEW YORK--College students can expect major revamping of federal student loan programs if Democratic nominee Bill Clinton is elected in November and sticks to his party platform.

The National Service Trust Fund, ratified Tuesday night as part of the party platform, has been dubbed the "domestic G.I. Bill," named after the post-World War II program instituted by Franklin D. Roosevelt '04.

Roosevelt's G.I. Bill has given $69 billion in education funding to over 20 million veterans, active-duty military members and reservists. And its inception in the 1940s launched the beginnings of Harvard's own financial aid system, according to Director of Financial Aid James S. Miller.

Advocates of Clinton's version of the G.I. Bill say the new proposal, which Clinton introduced into the campaign several weeks ago, will enable more students to attend college and will benefit American society, as well. Party leaders agreed with the idea strongly enough to build it into the 1992 platform.

"Over the past 12 years skyrocketing costs and declining middle class incomes have placed higher education out of reach for millions of Americans. It is time to revolutionize the way student loan programs are run. We will make college affordable to all students who are qualified to attend, regardless of family income," reads the platform, with the emphasis in the original.

Under the program, all Americans could borrow funds for college from the government. Students could repay their debts either by offering a percentage of their income over time or by participating in national public service projects.

According to a Clinton campaign policy staff member, this "national service" could be performed in teaching, law enforcement, health care, peer counseling or other areas. The period of service would be between two and three years.

If recipients choose to pay back the money as a percentage of their income, the commitment would likely be longer. The college debt repayments would be collected with the borrower's income tax each year.

Supporters of the G.I. Bill cite the problems with the current system of college finance--inefficiency, high default rates and lack of funds for middle class families--as reasons massive overhaul is needed.

The only existing model for the program is the "Police Corps" in Clinton's home state of Arkansas, in which students can receive state money for their education if they agree to serve a few years in law enforcement.

A national program would completely redesign the current system of student loan programs, using the existing budget. The Clinton staffer said the government spends over $3 billion annually on student financial aid.

That creates a possible drawback: Clinton aides agree that juggling such a major government program would create an organizational nightmare. Still, advocates say it will be more efficient than existing programs in the long run.

The original G.I. Bill gave assistance to 7.8 million World War II veterans and 2.4 million Korean conflict veterans. Over the last three decades, it has aided 8.1 million veterans and active-duty service members of the Vietnam era and the peacetime military.

Several new versions of the bill have been passed. The Vietnam-era version of the bill expired in 1989.

The idea of a college-for-public-service tradeoff, Miller said, has "been kicking around for awhile."

Under one proposal, advocated by Rep. Sam Nunn (D-Ga.), students would not receive financial aid unless they had done some sort of community or military service, Miller said.

Harvard didn't support that plan, Miller said, because it robbed students of choice. Clinton's proposal, however, makes the service option voluntary.

"On balance, the concept to me as an alternative way to pay for college has some attraction," Miller said.

Joanna M. Weiss contributed to the reporting of this article.