[NIFL-POVRACELIT:1273] Pell grants funding formula under revision

From: Mary Ann Corley (macorley1@earthlink.net)
Date: Thu Oct 30 2003 - 09:51:50 EST


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Subject: [NIFL-POVRACELIT:1273] Pell grants funding formula under revision
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Opinion Column from the New York Times, October 29, 2003

Punishing the Pell Grant Program


The maximum award of the federal Pell Grant program,
created to encourage low- and middle-income students to
attend college, covered more than 80 percent of
public-college tuition a quarter-century ago but covers
only about 40 percent today. Faced with high tuition, up to
25 percent of the low-income students with grades and
scores that make them prime college material no longer even
apply.

Given the importance of a college education for upward
mobility, Congress should be rushing to bring this
important program up to strength. Instead, the federal
Education Department is pushing a process that could cause
85,000 students to lose their Pell grants entirely and
hundreds of thousands of others to receive less federal
aid.

The problem is a pending change in the federal formula that
determines how much Pell aid families get, based on their
incomes and the state taxes they pay. The formula was
supposed to be revised yearly, but went untouched for a
decade. Then suddenly, the Education Department revised the
formula - but used state tax data from 2000, before the
recession that has sent state taxes rising again.

The Education Department blames the Treasury Department for
the delay in updating the formula, saying the I.R.S.
produced the needed data only recently. It seems more
likely that the government simply backed off the revisions
in the 1990's so as not to cause harm at a time when the
Pell grants' value was eroding and tuition was rising
sharply.

Why is the Bush administration suddenly pushing for a
revision based on outdated numbers at a time when the
unemployed are having trouble keeping their children in
school? The members of Congress who say the revisions
should be put off until the government gathers more current
tax data are right. But tinkering with the awards formula
will do nothing for the tens of thousands of poor and
working-class families who are being priced out of college.
To deal with that problem, Congress will need to finance
the Pell programs so the grants come closer to the real
cost of higher education.

http://www.nytimes.com/2003/10/29/opinion/29WED4.html?ex=1068449897&ei=1&en=
b1a683c30d8cb6dc



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