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.

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.