Since Christian educational institutions exist to serve the distinctive God-given purpose of providing an education oriented to an evangelical and biblical philosophy, it is essential that a Christian educational institution remain free and separate from state control in order to accomplish its missions of providing an evangelically-oriented education.
WE NOTE THAT federal laws authorizing various forms of subsidy include disclaimers of any intent to control local school policies. However, these disclaimers may become meaningless in practice because the courts have upheld the right of government to control whatever it subsidizes.
A government grant is obviously a government subsidy which may eventually incur government control whether such a grant is given directly to an institution in the form of categorical aid or given through the institution for the benefit of individuals attending the school.
Contractual arrangements for services rendered and some government loans do not necessarily represent a subsidy by the government even though the educational institution may derive some incidental benefit. However, government regulations and policies controlling these contracts regulate public and private educational institutions impartially. This equating of educational institutions by government may destroy the distinctive role of church schools.
The National Association of Evangelicals reaffirms its warning against federal subsidy (grants) to private educational institutions but does not view contractual arrangements (loans) with the government in the same light as they may be acceptable and beneficial.