In his $2.9 trillion proposed budget for the 2008 fiscal year which is aimed at slowly eliminating the nation’s deficit, President Bush included the largest increase to the Pell Grants in 30 years.
But in a budget which also included $145 billion for the war in Iraq in 2008 and cuts to spending on Medicare and Medicaid, Bush did not specify how he would fund the Pell Grant increase, which would cost $2 billion.
According to a statement from Secretary of Education Margaret Spellings, the maximum amount awarded in a Pell Grant would be increased from $4,050 to $4,600 in 2008, and there would be a 33 percent increase in awards over the next five years.
The total award would increase from $1,350 to $5,400, the largest five-year increase in the history of the Pell Grant, Spellings said in the statement.
Pell Grants, originally part of the Basic Educational Opportunity Grant, are awarded to low-income students who have difficulty affording college, said Chris Lindstrom, higher education program director of U.S. Public Interest Research Group.
“From a federal perspective it is an absolutely important step to help college remain affordable and accessible and for students in mid- and low-income families,” Lindstrom said. Pell Grants are a large portion of federal higher education funding and are grants that do not have to be repaid, Lindstrom said.
But since their creation in 1972, Pell Grants have steadily decreased in purchasing power since grant moneys have not increased as steadily as tuition costs, Lindstrom said.
As a result, the grants that once covered up to 80 percent of college costs now only make up roughly 35 percent of student costs, Lindstrom said.
The proposed increases in the maximum awards for Pell Grants would take strides in making college more affordable for students, especially California students, said Bill Schiebler, president of the University of California Students Association. “Over 65,000 students in California receive Pell Grants. Our students benefit more than any students in the country,” he said.
But while some student leaders say they support the increase in federal funds for the Pell Grants, others are concerned about existing speculation that the increases will be funded by cutting other existing federal aid programs. But because Bush has not announced how he plans to foot the $2 billion increase, there is some speculation that the money may come as a result of cutting other existing federal programs for higher education.
“The concern is that raising the Pell is meaningless if it cuts other federal aid programs,” Lindstrom said.
In addition to possible cuts to federal funds allocated for higher education assistance, Schiebler said he worries that cuts in federal programs could lead to cuts in state funds.
Many state programs build funds by matching federal contributions, so if federal funds are cut, states may not be able to provide adequate funding on their own, Schiebler said.
When states cannot adequately help middle- and low-income students afford college, students can become riddled with debt or decide not to pursue a higher education, Lindstrom said.
“It’s a huge concern. We support increasing Pell Grants, but at what cost? To increase Pell Grants but eliminate grants from other programs is not a comprehensive solution,” Schiebler said.
But while financial aid for ever-increasing college costs has been a recurring issue for many students, Lindstrom said she believes Bush’s proposal is a direct result of students making their views on the issue known as students are doing a better job of communicating with their legislators.
In addition, the increase in voter registration and voter turnout among young people in the midterm elections made student issues central to the elections, she said.
“Students and families are mounting an outcry that hasn’t been heard at this level before,” Lindstrom said.