84,000 STUDENTS SET TO LOSE PELL GRANT ELIGIBILITY IN 2005
From the Leg. Wire By Jasmine Harris
The Department of Education estimates that 84,000 students will lose Pell Grant eligibility and another 1.2 million students will see reductions in their grant or loans based on outdated information being used to modify tax allowance tables for students and families.
MONEY PROBLEM$
Pell Grant award eligibility for students is calculated by using the Expected Family Contribution (EFC). Students with low EFC’s receive a higher Pell Grant award than those with higher EFC’s. The EFC is determined by the family’s or student’s income tax returns and possess a tax allowance. This allowance enables families and students to protect a fraction of their income from being considered eligible for higher educational expenses. This tax allowance includes income deducted for state and other taxes. There are several tables that list this tax allowance based on income. In June 2003, the Department of Education modified information used to determine the tax allowance for state and other taxes. These changes decrease the estimated tax allowance for families, and thus increase the amount of income earned that may be considered eligible for higher educational expenses. Though the tax allowance tables are supposed to be updated yearly, the tables currently being used to determine Pell Grant eligibility are being modified based on IRS data from 2000.
A DOLLAR AND A DREAM
Unfortunately, the difference between the economic situations of students in 2000 versus 2004 is phenomenal. While the pressures of capitalism have rapidly increased the cost of living in the U.S., increases in wages, especially for the working class and people of color, have lagged behind. And with tuition and fees on the rise nationwide, the ability to attend college will continue to be a struggle. If more accurate data were used to modify the tax allowance tables, the outlook for current recipients of the Pell Grant would be more positive.
In 2003, Senator John Corzine (D-NJ) authored an amendment on an appropriations bill to prevent the Department of Education from implementing these changes. The amendment passed, however appropriations legislation lasts for only one year. Corzine authored the same amendment for the fiscal year 2005 appropriations bill. Though the amendment was stripped from the bill, there were no prohibitive measures implemented that would prevent the Department of Education from implementing the changes.
The United States Student Association (USSA) is currently working with coalition partners in the Student Aid Alliance to prevent these changes from happening. Stay tuned for future legislative updates to find out how you can get involved. For more information contact USSA’s Legislative Director, Jasmine Harris at leg@usstudents.org.
YOU CAN TAKE ACTION ON THIS LEG WIRE BY
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Signing on as an endorser of USSA’s Higher Education Access Campaign by calling 202.347.USSA.
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Lobbying your federal legislators at USSA’s Grassoots Legislative Conference held March 19-22, 2005
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Educating students on your campus about the plight of the Pell Grant.
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STUDENTS DEMAND FUNDING FOR HIGHER EDUCTION IN RESPONSE TO MISLEADING INCREASES
The President released his FY 06 budget yesterday morning to Hill Staff, government agencies and press. This budget will cut education funding by $530 million, increase the maximum Pell Grant award by $100 in each of the next five years, and eliminate over 48 programs in the Department of Education that total $4.2 billion in cuts.
“While increasing the maximum Pell grant award is an important part of college affordability, the current proposal is misleading,” stated Ajita Talwalker, United States Student Association President. “A modest increase to the Pell grant while simultaneously attacking the other parts of a student’s aid package that are necessary for a student to go to school is not educational access.”
The proposal also includes cuts resulting in the elimination of critical programs that are essential to many students’ ability to obtain a college degree. Programs such as GEAR UP (306.5 million), as well as TRIO Programs including Talent Search and Upward Bound (467.2 million) are among the targeted programs. The budget also proposes eliminating the Perkins Loan Program (66.1million), Leveraging Educational Assistance Partnership (65.6 million), Javits Gifted and Talented Education (11 million), and Thurgood Marshall Legal Educational Opportunity Program (3 million). With these proposals the doors to higher education will be slammed shut for many American families.
Students around the nation are organizing for a week of action in response to the cuts, February 14-18. This week will include a national call-in day on February 16, as well as in-district lobby visits. “Students will not let our elected representatives leave us behind. We will fight for the programs that we care about that make education a reality for American families,” said USSA Vice President Eddy Morales.
(From Student Labor Action Project
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