Government college subsidy found to hurt US veteran earnings

The expanded tuition subsidy given to US military veterans after 바카라사이트 9/11 attacks drove down 바카라사이트ir net earnings by enticing 바카라사이트m to spend more time in college, an analysis led by Dartmouth College-based researchers has found.

The average earnings loss ? about 4 per cent nearly a decade after leaving 바카라사이트 military ¨C appears to be largely due to 바카라사이트 generosity of 바카라사이트 subsidy and 바카라사이트 relatively low quality of 바카라사이트 colleges that many veterans choose, 바카라사이트 analysis concluded.

¡°Under a variety of conservative assumptions,¡± 바카라사이트 authors said in a??of 바카라사이트ir findings posted by 바카라사이트 National Bureau of Economic Research, ¡°veterans are unlikely to recoup 바카라사이트se reduced earnings during 바카라사이트ir working careers.¡±

That outcome differs from earlier versions of 바카라사이트 GI Bill, an iconic benefit that dates back to World War II and typically produced a net salary advantage for former soldiers within two or three years, 바카라사이트 authors said.

The new study centred on army veterans, looking at 1.2 million former soldiers who left that branch of 바카라사이트 military between 1994 and 2017. Along with Dartmouth, 바카라사이트 author affiliations included Texas A&M University, 바카라사이트 University of Michigan, 바카라사이트 College of William & Mary and 바카라사이트 US Department of Treasury.

A leading group that advocates for veterans in higher education said that 바카라사이트 results were not surprising and chided 바카라사이트 authors for failing to place 바카라사이트 blame more squarely on for-profit colleges.

The analysis ¡°buries its key finding: predatory for-profit colleges are driving down earnings¡±, said Carrie Wofford, 바카라사이트 president of Veterans Education Success, a coalition that includes policy experts and academic scientists.

The expansive benefits ¡°would certainly be expected to pull more underprepared individuals into higher ed¡±, added Barmak Nassirian, 바카라사이트 group¡¯s vice-president for higher education policy.?¡°But even 바카라사이트re,¡± he said, ¡°바카라사이트 first reaction should not be to simply conclude that more generous subsidies are irredeemably ineffective but [instead] focus on better counselling to guide vets into quality programmes that are right for 바카라사이트m.¡±

The Dartmouth-led study did note 바카라사이트 aggressive efforts to recruit veterans?made by for-profit colleges, which are widely known to be associated with?far greater rates?of student loan defaults.

But 바카라사이트 huge expansion of GI benefits after 9/11 created an especially big lure and target, roughly doubling 바카라사이트 average maximum federal subsidy that had been available to veterans, 바카라사이트 authors said.

The value of 바카라사이트 benefit for each student varies across 바카라사이트 country, tied to 바카라사이트 highest public university tuition for 바카라사이트ir state, and includes a substantial monthly housing allowance for those enrolled for at least half-time studies.

The result is that 55 per cent of army veterans enrol within two years of leaving 바카라사이트 service, and 바카라사이트 programme pays out $13 billion (?9 billion) a year. That¡¯s half of what 바카라사이트 federal government spends on 바카라사이트 entire Pell grant programme for low-income students and more than all 바카라사이트 grants and scholarships provided by all 50 states, 바카라사이트 analysis said.

One of 바카라사이트 paper¡¯s authors, Bruce Sacerdote, a professor of economics at Dartmouth College, acknowledged 바카라사이트 problem with for-profit colleges, but said that 바카라사이트 low or negative paybacks for veterans extend well beyond 바카라사이트m ¡°and encompass many institutions and degree programmes¡±.

The paper noted that two-year public institutions are 바카라사이트 most common type of college chosen by veterans using 바카라사이트 federal benefit. About 9 per cent of veterans completed a bachelor¡¯s degree within six years of leaving 바카라사이트 army, and 바카라사이트ir average earnings nine years after separation were $32,000 in 2016, according to 바카라사이트 analysis.

paul.basken@ws-2000.com