The U.S. Senate took two actions in mid September that will affect aid amounts for Pell Grant recipients. In one action, the Senate voted to pass an amendment that leaves intact the federal needs analysis formula used to determine who qualifies for Pell Grants and how much aid they should receive. This summer, in an effort to update the formula, the Department of Education proposed changes that would have knocked an estimated 84,000 students from the aid rolls next year.  In response, Sen. John Corzine (D-N.J.) proposed an amendment which the AFT supported, that would restore the original formula. The Senate passed the amendment on Sept. 10, and it has now been assigned to a conference panel of Senate and House members.

As AFT director of legislation Charlotte Fraas noted in a letter to Sen. Corzine, given the uncertain state of the economy and rising college costs, this is no time to tinker with the Pell funding formulas.  The Senate's other action will have an even more significant effect on grant recipients. The Senate failed to pass a bill sponsored by Sen. Edward Kennedy (D-Mass.) that would have raised the maximum Pell Grant amount to $4,500 (up from $4,050). This increase was an attempt to mitigate the effect that rising costs of college are having on low- and middle-income families.

The AFT considers adequate support for the Pell Grant program to be a top priority and is concerned about the impact this latest development will have on students. "We believe that students with the greatest financial need are not receiving sufficient Pell Grant aid to attend college," says Gabriella Gomez, a senior associate in the AFT legislation department. "The lack of an increase in this year’s appropriations for Pell Grants is a signal that the priority is not on access to higher education." The AFT maintains that the maximum Pell Grant amount should be increased to better reflect college costs. [Jessica Rice]
[Sept. 24, 2003]