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ERIC Number: ED193274
Record Type: RIE
Publication Date: 1977
Pages: 39
Abstractor: N/A
Reference Count: 0
An Economist's View of the Uniform Methodology. ACT Special Report Twenty-One.
Barnes, Gary T.
This report, concerned with an equitable procedure to determine student financial aid eligibility, argues for adoption of an annuity income measure of parents' ability to pay, and against continuation of the consensus measure developed by the Keppel Task Force--National Task Force on Student Aid Problems (the UM measure). The new Uniform Methodology (UM) measure could be implemented in two stages. In the first stage, four changes to the UM measure would be introduced. None of these changes would require the collection or analysis of additional data; they should be introduced as a package. In the second stage, the UM should be made more comprehensive by expanding the list of assets included in the resource base. The values of many of these assets will have to be estimated by calculating the discounted present value of current and projected future income from each asset. In addition, the allowances against income--living, tax, retirement--should be converted to a negative asset value by calculating the discounted present value of current and projected future allowances. Only after both stages have been implemented will the annuity income approach be complete, internally consistent, and equitable. (Author/RL)
ACT Publications, P.O. Box 168, Iowa City, IA 52240 ($3.00).
Publication Type: Opinion Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: American Coll. Testing Program, Iowa City, IA.
Identifiers: Annuities; Uniform Methodology Model