A bill that passed Congress last week may cut government funding of Pell Grants, the primary source of federal grant aid for undergraduate students, by more than $300 million.
A bill that passed Congress last week may cut government funding of Pell Grants, the primary source of federal grant aid for undergraduate students, by more than $300 million.
Although Duke students will likely be unaffected by the measure, should President George W. Bush sign it into law, more than 1 million students nationally could be affected by the Republican-backed initiative, and Democrats are fuming. Activists estimate that the changes would effectively lower individual aid by $200 to $300 for approximately 1 million students, and an estimated 90,000 others would lose their Pell Grants entirely.
“In 1999-2000, costs were preventing even college-qualified students from attending school,” said Brian Fitzgerald, director of the Advisory Committee on Student Financial Assistance, an independent group that advises Congress on student financial aid legislation. “There’s no question that it’s simply getting harder to afford college—the barriers have increased because tuition costs have increased.”
The bill will not affect those students whose family income falls below $25,000 but will most drastically affect the university and college students from “moderate income” households—those earning between $30,000 and $45,000, Fitzgerald said.
“It won’t affect most [well endowed private institutions],” he added, “because there is zero expected contribution for those earning less than $40,000.”
Fitzgerald also explained that for students who would lose Pell Grant funding under the new legislation at most well-funded private universities, like Duke and Harvard University, the schools would most likely be able to support their students’ changing needs. “State schools and smaller private institutions, however, may not be able to make up the difference [in government awarded aid],” he said.
Jim Belvin, Duke director of financial aid, noted that the measure will not affect students at the University.
“The fact that Duke meets 100 percent of each student’s demonstrated need will serve to protect those students who apply for and receive need-based aid,” Belvin wrote in an e-mail. “If a need-based aid recipient’s Pell Grant is reduced, additional aid will be provided to cover what would otherwise have been provided by the Pell Grant program.”
Belvin added that providing funding to students previously receiving aid from the government will add stress to the University’s financial aid budget.
“Although there is no way to know at this point, we hope the impact will not be significant,” Belvin said. “Any increase in costs, of course, puts additional pressure on the aid budget. The University is, however, prepared to meet these costs.”
Regardless of the costs to individual institutions, some members of Congress are concerned about the potential effects of the changes on students’ ability to afford college.
Last year, Congress adopted an amendment proposed by Sen. Jon Corzine, D-N.J., to block the implementation of changes to financial aid eligibility formulas that would have effectively reduced financial aid for students. This new bill, pending the president’s signature, supersedes Corzine’s proposal last year.
“We should be expanding opportunities for college in America, not eliminating opportunities for students to seek financial aid,” Corzine said in a Nov. 18 press release. “I don’t know how the Bush Administration can call themselves compassionate when they are throwing students out of the opportunity to seek a college education. It is now clear to me that this was a backdoor attempt to cut funding from the Pell Grant program.... We need to expand opportunity in this country, not relegate it to only those who can afford it.”
Rep. Walter Jones, R-N.C., maintains that the bill seeks to make the way in which government regulates funding more efficient. He noted, however, that he does not support the changes to the funding formula.
“The Pell Grant program was supposed to help those who were less fortunate,” he said. “The intent of the revision should allow the Department of Education to help the young people who need the help, get the help. We need to ensure the integrity of the program.”
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