Medical College has given $10,000 to every student

[simpleSimon]

Medical College has given $10,000 to every student who can use the money however they want.
https://wpln.org/post/happy-thanksgiving-meharry-students-youre-all-getting-10000-this-week-from-covid-relief-money/


When I first saw this headline I thought it had to be a mistake.  A school (in this case an HBCU medical college) is giving all of its students $10,000 to use any way they want!  The money comes from federal COVID relief funds in the CARES Act some of which was intended to be used for student financial aid.  I am not sure this is the kind of "aid" lawmakers had in mind when the funds were appropriated.  Wouldn't the funds be better spent reducing tuition by $10k or ensuring that the most financially needy students receive corresponding reductions in their cost of attendance?  I am trying to understand the rationale of campus leaders who thought this was a good idea.  In my experience many young people have misplaced priorities and handing them $10,000 is unlikely to be put to the best use.

Your thoughts?

[mamselle]

Maybe they know their students better than you do.

Maybe they just trust them more.

They clearly don't feel the need to micro-manage their generosity.

I don't see a problem.

M.

[Parasaurolophus]

Wouldn't the funds be better spent reducing tuition by $10k or ensuring that the most financially needy students receive corresponding reductions in their cost of attendance?  I am trying to understand the rationale of campus leaders who thought this was a good idea.  In my experience many young people have misplaced priorities and handing them $10,000 is unlikely to be put to the best use.

Your thoughts?

Trusting them to know their needs seems both fairer and more efficient, to me. If they need it for tuition, they can put it there. If they need it for rent, they can put it there instead.

Plus, if they're graduating with ~280k+ in debt, ten grand isn't going to make a dent on it. They'll have secured their loans some other way, and probably need this money for something else a lot more. Besides, they're med students; med students are dumb, but they're generally more responsible with money than a first-year undergrad.

[apl68]

I've read in another article (don't have it to hand right now) that Meharry students did a lot of volunteering to staff vaccination and test clinics in the community.  So the school apparently thinks of it as something of a reward for a job well done.

[dismalist]

Wouldn't the funds be better spent reducing tuition by $10k ...

A tuition discount and a gift of the same magnitude are the same thing.

[Puget]

Wouldn't the funds be better spent reducing tuition by $10k ...

A tuition discount and a gift of the same magnitude are the same thing.

Note exactly, because reducing tuition could reduce the amount of student loans they can take out, whereas the cash payment would be on top of their loans. Med students take on a *lot* of loan debt, but that's basically OK because they are generally going to be making a high salary right away when they finish their training. But in the mean time they need to eat and pay rent.

[dismalist]

Wouldn't the funds be better spent reducing tuition by $10k ...

A tuition discount and a gift of the same magnitude are the same thing.

Note exactly, because reducing tuition could reduce the amount of student loans they can take out, whereas the cash payment would be on top of their loans. Med students take on a *lot* of loan debt, but that's basically OK because they are generally going to be making a high salary right away when they finish their training. But in the mean time they need to eat and pay rent.

Subtle point, but nay, they could invest the 10 grand and use the interest earned on that to pay the interest on their loans! :-)

[clean]

In my experience many young people have misplaced priorities and handing them $10,000 is unlikely to be put to the best use.

Does your experience include a class of Med Students?  Not "pre-med" mind you, but actual med students? 

I doubt that med students are going to blow 10K on a weekend in Vegas or 'a bitchin spring break'.  With all of the costs involved in med school, I would think that 10G would be a drop in the bucket and will simply offset some small fraction of the loans that they would otherwise be required to take.