Due to the number of folks going back to school who qualified for Pell Grants, the fund is facing a shortage. A $19 billion gap, to be exact. 600,000 students might lose their Grant, entirely, and 8 million will see it cut severely. Keep in mind a Pell Grant usually does not cover the cost of college entirely, so this would increase the loan burden on college students nationwide, resulting in yet another case of the young being stepped on.
Tomorrow, as part of the health care vote, the House will vote on steps to prevent this crisis from happening.
(flip)
As a student in the state of California, which has been shock-doctrine'd by Republicans (led by Ahnold), it seems imperative to me that we prevent further educational cuts. California is a perfect case example of what happens when education is neglected- we have an ATROCIOUS high school graduation rate, skyrocketing public university costs, and admissions rates dropping so low at public schools that it's like applying for caltech. (Transfer admission rates for several UC campuses are now under 15%, and freshmen applicants are being wait-listed this spring. This is in response to enrollment cuts).
From cnn:
This year, the maximum Pell grants were $5,350, in part because of extra funding contained in the Recovery Act. But in 2011, the maximum award is slated to drop to $2,150 if Congress does not act.
The Obama administration's funding solution now before Congress is part of a proposal to end federal subsidies to private lenders that make federally-backed student loans. If passed, the lending overhaul would produce $36 billion in savings that will be dedicated to Pell grants, including $13.5 billion to plug the current gap.
The bill wouldn't fill the entire shortfall and it's not clear how the rest of the $5.5 billion gap would get plugged.
Republicans who oppose getting rid of the subsidized private loan program say that the recent stimulus-related hikes in Pell grant funding were a windfall that taxpayers can't afford.
http://money.cnn.com/...
Republicans are only concerned with getting their buddies who finance higher-interest student loans more $$ for private loans, instead of govt-backed Perkins loans or ones like it. My Perkins loan is at 5% interest, with deferments while I am enrolled.
California's politicians have spent billions to lock up non-violent prisoners (including medical cannabis patients) but only give pink slips to schools. Here the Feds have a chance to continue Pell funding, and hopefully the House chooses to do so.