With all the furor around falling stock markets, stalled bailout programs and bank buyouts, it’s difficult to be calm about the economy.
For students, there’s only one piece of advice – don’t panic.
For the University, there’s only one lesson to be learned – cut the crap.
The present economic crisis demands University officials find ways to spend money on programs that matter and eliminate superfluous expenses.
Wachovia’s buyout is not likely to affect the nuts and bolts of the University’s finances.
Heidi Kozlowski, the University’s assistant controller, said previous buyouts and mergers have had almost no effect on University finances.
But students are already feeling the effects of increased food and energy prices, and now they may face problems with paying for their education.
Julie Rice-Mallette, associate vice provost and director of the Office of Scholarships and Financial Aid, said most federal Stafford loans are now decreasing borrower benefits.
Banks are cutting incentives like low interest rates for repayment and reduced opening fees, making these need-based loans less attractive to students.
With these mounting economic problems, the University cannot afford to waste money. It should spend money on programs that further its educational and research goals – the libraries, professorial staff or student financial aid.
Spending money on things like Mary Easley’s 88 percent raise, the new bus shelter on Dan Allen Drive, the golf course on Centennial Campus, the brick work on D.H. Hill or the “Red Means Go” rebranding initiative are not wise financially.
The University already must cut its budget due to a shortage of state funding – wasting the remaining money on appeasement to the governor or projects that can be put on hold is simply irresponsible.
The Easley raise, golf course and rebranding initiative are not the entire problem. They just represent the problem the University must address, which is all superfluous expenditures that take money away from programs that aid and educate students.
Students are the foundation of this institution – without students, there are no future alumni or future research grants.
The University needs to guarantee that students can get the money they need to pay for the quality education they deserve.
