The federal government’s efforts to improve access to higher education by increasing Pell Grant funding has fallen short of supplementing the increases in college tuitions.
President Obama has vowed to make higher education a priority, stating that by 2020, he expects the United States to have the highest rate of college graduates than any other country in the world. The Obama Administration has proposed a continued increase in the maximum award allowed annually, as well as moving the Pell Grant program — need-based government aid for students that do not need to be paid back — from discretionary to mandatory spending, otherwise known as an entitlement program.
Despite the demonstrated commitment to minimize the burden of higher education costs for Americans, the Pell Grant’s purchasing power is not what it was when the program was established in 1975.
According to Business Weekly, Pell Grants covered 85 percent of college tuition in its first year, but by 2000 it covered only 39 percent, at which point the average annual cost of tuition at a four-year public university was $8,500.
At Fresno State, the rise in tuition has coincided with the number of student loans accepted.
According to financial aid director Maria Hernandez, the number of subsidized Stafford Loans, a loan that does not start accruing interest until six months after graduation, accepted by students increased 13 percent from 2006-07 to 2007-08, compared to a 2 percent increase in Pell Grants awarded.
Some experts have agreed that the rising cost in tuition in relation to financial assistance programs provides a dilemma for lawmakers. Assistant professor Jeffrey Cummins said Congress has steered away from addressing the fact that Pell Grants have not been able to keep up with the inflation of tuition costs.
“Congress has chosen not to peg grant increases to tuition increases,” Cummins said. “It is not fiscally feasible right now to do so when considering the deficit, but it hasn’t really been attempted in a good economy either.”
The maximum Pell Grant award for 2009-10 was $5,350, and is anticipated to jump to $5,550 in the 2010-11 year. This is less than a 4 percent increase, compared to the 20 percent increase in tuition and fees for undergraduates in the California State University system for the fall of 2009, which went from $3,354 to $4,026. The public university system in California — the University of California, community college and CSU systems — are expected to have continued tuition increases to combat the reported $584 million in cuts to higher education.
Under Obama’s proposed plan for Pell Grant increases in January, starting in 2011 the maximum Pell Grant reward would coincide with increases in the cost of living which is predicted to reach $6,900 by 2019. However, tuition costs have risen much faster than the cost of living.
According to a College Board study, “Trends in College Pricing,” the economic recession has allowed tuition costs to increase just like any other good or service, citing that tuition costs have risen at a slightly higher rate than the consumer price index.
Also, the fiscal restraints on state governments have forced them to make cuts to higher education, which supports a large portion of public education funding. The College Board reports, that on average, 43 percent of total revenues at public undergraduate colleges are appropriated from state and local governments.
The College Board reports that 22 percent of full-time students at four-year public universities faced tuition increases of over 9 percent last year. The public education system in California has increased undergraduate tuition by 32 percent.
