MCT CampusSenate Democrats recently announced that they would ask for an increase in the ceiling of the Federal Pell Grant program for the 2008 fiscal year. The increased funding will allow the maximum Pell Grant for one student to grow to $4,610 per year.
“Instead of ignoring the plight of families facing crushing college costs, our program raises the Pell Grant by $300 and says student loan payments can never exceed 15 percent of your income,” said Senator Edward Kennedy, the chairman of the Senate Education Committee during a March 22 press conference.
The Democrat’s recommendations are a part of the framework that has been put forward for inclusion into the federal budget. Additionally, in the proposed Department of Education budget, there is a provision that will provide for continued increases over the next five years, to $5,400 in the year 2012.
Although there is no guarantee that the recommendations will be approved, it seems likely that they will be.
“This proposal is in the version of the budget on both sides of the Capitol. This just creates a frame work, but we are optimistic about its potential to be approved,” said Luke Swarthout, a higher education advocate.
The Pell Grant program provides need-based aid to lower income students in an attempt to increase access to higher education. Because the program provides students with grants, the money does not need to be paid back.
“This is one of the key federal programs that increases access to college for lower income students,” said Swarthout. “This is a solid leap forward, but there is still plenty of room for improvement.”
For the past five years, the Pell Grant ceiling has remained constant at $4,310, even as inflation has remained constant.
Pell Grants operate on a sliding scale, so that the neediest students receive the largest grants.
378 students at the University qualify for this type of aid, but that number stands to increase slightly under the proposed plan because increasing the grant ceiling also increases the number of students eligible for it.
There is some concern, however, that the increase in Pell Grant funding might compromise some other financial aid programs, especially those for middle class students.
“We want to make sure that the Supplemental Educational Opportunities Grant [SEOG] and the Perkins Loan stay in place,” stated Bill Witbrodt, director of Student Financial Services. “These options are a large part of the aid package for many students.”
The SEOG is a grant often paired with the Pell Grant, which does not need to be paid back. The Perkins Loan is a low-interest loan for students financed by the federal government.
“We’re trying to ensure that all students who are receiving need-based financial aid get the best deal possible,” said Witbrodt.