PresidentGeorge W. Bush has proposed a new budget to Congress that could force collegestudents to take out more student loans to supplement cuts in monies grantedyearly through Federal Pell Grants.
Pell Grantsare government entitlements that provide a monetary foundation to students fromlow-income families. This is thegovernment’s largest undergraduate student grant program.
According to aCongressional financial-aid advisory committee, an estimated 90,000 collegestudents will lose their Pell Grants and even more will have their awardsreduced by as much as $300. This is due to changes the Bush administration hasmade to the program’s eligibility requirements.
Currently, astudent can be awarded $200 to $4,050 per academic year.
“It may not bea lot for some, but it will be a lot for those students who are not receiving alarge amount of Pell,” said Southern University’s Director of Financial Aid,Phillip W.W.D. Rodgers. “He’s (Bush) already gone in and had them re-calculatehow you can even get a Pell.”
Bush said thatchanges in the Pell Grant eligibility requirements were long overdue and abouta $4 billion dollar deficit is due to its surge in demand.
ThePresident’s proposal has yet to be approved by Congress, but if it is, it willtake effect no earlier than the 2006-07 school year and could mean up to $300million being saved because of the changes.
“It’s going tohave an impact,” Rodgers said. “But not just on Southern University, it’s goingto be across the board.”
Considerationfor federal aid can be obtained by completing a Free Application for FederalStudent Aid (FAFSA) form by midnight on June 30, 2006.
In a 2004interview with The Philadelphia Inquirer, Brian K. Fitzgerald, director of theAdvisory Committee on Student Financial Assistance, said that the formula tweakupdated replaced tax information the U.S. Department of Education uses to helpdetermine Pell eligibility and need.
“Although newtax tables would be a more accurate reflection of student need, the adjustmentswould end up hurting far more students than they would help,” Fitzgerald said.
It’s estimatedby the U.S. Department of Education that 90 percent of the families eligible toreceive Pell Grants earn less than $35,000 a year.
Over the lastdecade the Pell Grant application pool has grown more than 37 percent.
Along withPell grant application increases, the cost of college related expenses has alsopeaked.
Rodgers saidthat between 89 and 92 percent of Southern University students receive someform of financial aid. But with no new money being allocated to the universityand the recent tuition and housing increases, Rodgers said the affordableeducation has resulted in less grants and more loans.
“We’veincreased our loan volume every year since I’ve been here,” Rodgers said.”Loans that had once been taken for granted by students are now being used foreducation.”
Shay Belk, aSU graduate student in political science, fears Bush’s new budget will affectstudents even after they graduate.
“You come toschool with an idea of getting a better job, but by the time you’re out ofschool, you’ll owe so much that you won’t have much to live with,” Belk said.
Bush’sproposal also calls for an increase in the amount of money freshmen can borrowwith their Stafford Student Loans. The increase would hike the current amount,which is $2,625, up to $3,000.
“He’s going tocreate more debt for students graduating out of school,” said Justin Foster, aBaton Rouge native and junior elementary education major.
“It’s going toforce students into debt, putting them at a disadvantage.”
Rodgers saidhe encourages students who come into his office applying for loans, to watchthe amount of loans they take out.
“When you takeout loans, take what you need and not what you want,” Rodgers said.
He said students should apply now forfinancial aid. He added that students do not take advantage of the manyscholarships that are out there.
“You have tohelp yourself,” he said.
