Will Deny Pell Grants to 81,000
The U.S. Education Department's new way of determining a student's need for financial aid will disqualify 81,000 students from receiving Pell Grants, the Government Accountability Office said in a report last week, a conclusion that confirmed earlier predictions by many higher-education lobbyists.
Since January, the department has been using updated tax information in its formula for assessing a student's eligibility for federal financial aid. The change makes families appear richer -- and thus able to contribute more to the cost of their children's higher education -- because it reduces the amount of money the department forgives for state and local tax payments.
The change in the tax allowance was the first in more than a decade. It was announced a few days before Christmas and took effect this year, despite opposition from Democratic lawmakers, college lobbyists, and advocates for students (The Chronicle, January 7).
The report from the GAO, the investigative arm of Congress, concludes that the change will increase the expected family contribution for college costs by $440, on average, and is likely to result in a decrease in the Pell Grant award for about 35 percent of students. The average cutback will be about $130, the report says, and families will have to pony up an additional $3.2-billion over all. http://chronicle.com/prm/daily/2005/04/2005042601n.htmI'm sure the BFEE is rubbing its hands with glee -- that 81,000 more poor students *cough* cannon fodder *cough* who will probably have to turn to the military to get a college education.
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