More than 5,000 University students who depend on Pell Grants may see an increase in the amount they receive in 2009 if a bill passes in the U.S. House of Representatives. The College Opportunity and Affordability Act – House Bill 4137 – was introduced this past November by Rep. George Miller, D-Calif. Section 401 of the bill, if passed, will increase the the Federal Pell Grant to $9,000 by the 2013-2014 academic year. The bill has passed in the U.S. House of Representatives with a 354-58 vote and has been referred to the Senate Committee on Health, Education, Labor and Pensions. Mary Parker, executive director of admissions and student aid, said she is excited about the possible increase. “What we have seen over the years is that college costs across the United States have increased, but unfortunately, the federal aid programs haven’t kept up the pace,” Parker said. The maximum Pell Grant for the 2007-2008 school year is $4,130. Parker said from the 5,000 students receiving a Pell Grant, about 65 percent of them still have to take out student loans. If the bill passes, the amount will more than double in six years. Jessica Addison, interior design sophomore, said she receives the full Pell Grant and uses it primarily to pay rent. “Usually towards the end of the semester, [money] gets tight,” Addison said. “If it goes up, I won’t have to work anymore, and I can focus more on school.” Parker said many people think there is a “magic cutoff number” to receive a full Pell Grant. The amount a student receives from the Pell Grant is determined by a family’s expected family contribution, or EFC. Income is not the only factor that determines a student’s eligibility for a Pell Grant. The Department of Education also looks at a family’s tax history, capital and other sources of income. The funds students receive from the grants come from the federal budget in Congress. “We see students who come here with a zero EFC,” Parker said. “Their families cannot contribute, they cannot contribute – we need this money.” Parker said students need this additional money because they pay for more than just tuition and fees – students have to also pay for room and board, books and transportation. Addison said without Pell Grants, it would be difficult for her to go to school at LSU. “I’d be able to stop taking out student loans,” Addison said. “I’m already $6,000 in debt after two years.” If the bill is passed, Section 401 will become effective Jan. 1, 2009. A provision in Section 482 of the College Opportunity and Affordability Act also aims to simplify the Free Application for Federal Student Aid, or FAFSA. This section says the Secretary of Education will develop a simplified paper application form for students. The form, to be known as EZ FAFSA, will allow students to submit only information that will determine their eligibility for financial aid such as Pell Grants and TOPS. “Anything they can do to simplify that process for students, we’re in favor of,” Parker said. She said until the change occurs, the Office of Undergraduate Admissions and Student Aid will work to inform students that they are willing to help students with the FAFSA form. Student aid office representatives walk students and their parents through the financial aid process to make it easier. Parker said students and families have been scammed by companies who say they will help get financial aid for students – for a monetary fee. “In areas all across the United States, [families] think they can’t afford [college],” Parker said. “It’s very important that colleges and universities help to spread the word that college is affordable, and there are programs available [to help].” The bill also includes a provision which will simplify the electronic application form. Similar to the EZ FAFSA, the electronic form will only have data elements that will determine a student’s financial aid eligibility. Parker said she encourages students to fill out the FAFSA online. She said it is easier, quicker and more efficient.
—-Contact J.J. Alcantara at [email protected]
House bill to increase Pell Grant amounts
April 28, 2008