Already strapped for funding, federal Pell Grants took another hit earlier this month when Congress passed legislation effectively cutting some 90,000 needy students from the college financial aid program--and very likely keeping them away from college campuses altogether.

With more and more people needing help to pay for a college education--many of them attending the public colleges and universities where AFT members work--the demand for the need-based funds has soared.  The last decade has seen a 37 percent increase in the number of students receiving Pell Grants, which now total 5 million, according to the College Board.

In the same action that limited access to Pells, Congress increased funding for the program by $458 million, but that figure won't even cover existing costs. That's because each year, Pell overspends to meet demand, and, according to Congressional Quarterly, the U.S. Department of Education estimates a $3.7 billion deficit next year. For students whose heads spin at such figures, more down-to-earth tuition payments bring dismal news as well: despite spikes in tuition, the maximum grant for individual students remains capped at $4,050.

Now a Congressional ban on updating tax tables, put in place last year to avoid cutting tens of thousands of students off from Pell money, has been lifted. Part of an omnibus appropriations bill passed on Nov. 21, the new policy--which AFT and other groups fought vigorously--gives the green light to the Education Department to update the tables. This affects how much family income is considered discretionary and therefore available to pay for college tuition. The new calculation would make fewer families eligible for Pells.

If the department makes these changes--and AFT's legislative department fully expects it will--about 1 million potential students would have their awards reduced by $300. Another 90,000 would lose eligibility altogether. The move would help the department save $300 million per year--a drop in the bucket considering the $3 billion shortfall it is meant to allay.

For those counting on Pell funds for access to higher education, those dollars make all the difference. "At a time when we should be focusing on increasing access, rather than decreasing access through reduced student aid," says AFT legislative staffer Gabrielle Gomez Gomez, "this move is obviously deterring us from that focus." [Virginia Myers Kelly]

November 30, 2004