Monday, December 7, 1998
Federal grant awards decrease
STUDY: Increased fees leave many students without adequate
aid
By Linh Tat
Daily Bruin Contributor
As the cost of higher education continues to rise, the amount of
federal grant money offered to individual students is falling,
making it more difficult for low-income students to finance their
educations.
A study released Nov. 17 by the Education Resources Institute
and the Institute for Higher Education Policy revealed that despite
increased funding, federal grants are covering a lower percentage
of college tuition today as compared to the past. Pell grants, the
main federal aid for low-income students, now cover approximately
half of what they did 20 years ago.
"Our concern is that even with some modest increase in Pell
grant funding, we’re risking access to higher education for the
lowest-income students," said Jamie Merisotis, president of the
Institute for Higher Education Policy.
As a result, Merisotis said that a shifting trend has seen more
low-income students attending community colleges rather than
four-year institutions. He is concerned with the number of lower
and higher income students enrolled in four-year universities.
He said that despite a 23 percent increase in college enrollment
by low-income students between 1972 and 1996, they are still
enrolling at an approximately 30 percent lower rate than
high-income students.
Approximately 3.6 million of the nation’s 14 million college
students are receiving Pell grants. More than half of these
recipients in four-year institutions are eligible for the maximum
amount provided through the grant.
According to the study, the average Pell grant covered 19
percent of the cost of attending a private, four-year college in
the 1976-77 school year and 39 percent of the cost of a public
school.
In 1996-97, the most current statistics available, the value of
the average grant had decreased, covering only 9 percent of the
cost of private college, and 22 percent for public schools.
The maximum Pell grant dropped from 35 percent to 13 percent of
private college costs between 1976-77 and 1996-97. It decreased
from covering 72 percent of the cost of public college to 34
percent in the same years.
And while the average Pell grant award has declined, the cost of
higher education has increased by 49 percent in the past 20 years.
Even with a 10 percent increase in family incomes, this is not
enough to offset the increase in college tuition, according to the
study.
"The cost of living is going up, and the grants aren’t keeping
pace with the skyrocketing costs of living and college tuition,"
said Nick Valdivia, assistant director of UCLA’s Financial Aid
Office.
He said that the difference between grant money awarded and
rising college tuition is being made up with loans for an
increasing number of students.
Another study by the U.S. Department of Education revealed that
federal funding for the Pell grant program peaked during the
1992-93 school year and has since fallen 7 percent through 1996-97.
At the same time, more students are receiving Pell grants now than
ever before.
The study suggested the main problem is that a greater portion
of college students are receiving federal grants that cover a
diminishing proportion of college costs.
Rather than spreading the money out and making it available to
more students, Merisotis said that he would prefer to see the money
concentrated on the neediest students.
Andrew Yonce, a first-year undeclared student, held a different
view. "I think it’s good that the government is giving grants to
more students. Even if the amount is less per student, more people
are being helped along the way."
UCLA financial aid counselor Michael Katz said that students who
do not feel they receive enough financial aid should apply for
scholarships.
He also said that students should write to their congressmen,
since they are the ones who allocate funding for federal financial
aid programs.
"Students get mad at the financial aid office when they should
be writing to the government," Katz said. "Let them know you would
like a raise in federal grants. If students aren’t speaking up,
Congress will leave the issue alone."
According to Katz, Cal Grants, which are funded by the state,
have gone up to help students meet the rising cost of college.
Comments, feedback, problems?
© 1998 ASUCLA Communications Board[Home]