Pell Grant system reformed
By JACKIE WOMACK
The federal government wants to both give and take from college students.
If President Bush’s proposed financial aid changes pass, many college
students could be receiving $100 more every year for the next five years
in their Pell Grants.
But they could also wind up with fewer options and less chance of getting
a student loan since the increase in Pell Grants would come from the federal
student loan program.
| "I
think it is better to keep it the way it is or if [the government]
tries to increase Pell Grant, do it without decreasing student loans." |
| -JOSE
SANDOVAL
Business major |
Jose Sandoval, a business major who receives Pell Grant aid, said it
was a bad idea.
“I think it would hurt more people than it would help,” he
said. “There are a greater number of people with loans than in the
student aid program.”
Bush, who made his proposal in a speech to a community college audience
in Florida, said it was necessary to reduce the Pell Grant program’s
$4.3 billion deficit.
Maria Hernandez, director of financial aid said, the amount of Pell Grant
awards have not increased in the last three years.
“The most a student can get [now] is $4,050,” Hernandez said.
She said that this hasn’t kept up with either the cost of living
or tuition increases.
Recreation major Ashley Ford said financial aid is very important.
“A lot of CSU students— including me— wouldn’t
be able to come if it weren’t for financial aid,” Ford said.
Bush’s plan would pay for the increase in Pell Grants by cutting
lender subsidies and other costs in the student loan program.
Junior Anna Garcia said it was a bad plan.
“I don’t think it’s really fair for people who are trying
to make money so they can get out of the Pell system,” she said.
“If you can make money and pay your own way, it’s better so
there’ll be more money for students coming in.”
Garcia said that when she started college, she “couldn’t have
made it” without a Pell Grant. But now that she’s earning
more, she’s applying for loans to finish her schooling.
Bush’s loan plan would affect a lot of Fresno State students, Hernandez
said.
She said 9,400-9,500 students have been offered loans at Fresno State
and about 60 percent of students accepted the loans offered to them.
Hernandez said financial aid has awarded more than 7,600 students with
Pell Grant, this year.
She said financial aid awarded 7,900 students with Pell Grants last year
but that they’re still awarding aid.
Both programs had about the same amount of money paid out last year: $22
million.
The possible alterations to Pell Grants follow some real changes in how
Pell Grants are awarded. In December, Congress changed the formula to
determine the expected family contribution, the amount that students and
their families are expected to spend toward college.
The expected family contribution [EFC], determines a student’s eligibility
for a Pell Grant.
“It’s effective for the 2005-2006 application process the
application that students are filling out right now,” Hernandez
said. “There was a slight decrease in the amount of protected dollars
in the EFC. It could potentially increase the expected family contribution.”
Hernandez said she thought the change would have a “very minimal
impact” on campus. Those most affected would be those attending
higher-priced schools who were “minimally eligible” for a
Pell Grant.
“I think it would be better just to keep it the way it is or if
[the government] tries to increase the Pell Grant, do it without decreasing
student loans,” Sandoval said.
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