The Fate of Pell Grants...

As college students, we file the FAFSA every year hoping to get additional help for college from the Federal Government. For some, Pell Grants are offered to assist with the costs of college. The Federal Pell Grant Program provides need-based grants to low-income undergraduate and certain postbaccalaureate students to promote access to postsecondary education.

However, here is something we may not know about this program..."One of the least publicized achievements of the 111th Congress is the Student Aid and Fiscal Responsibility Act, which passed as part of the health care reform package that was signed into law by President Barack Obama in March. SAFRA cut billions of dollars in senseless subsidies that private companies were receiving to originate federal student loans in favor of originating all federal student loans directly through the Department of Education. The money saved is being used to expand the Pell Grant program, which provides low-income students with grants to finance their higher education."(to read more click here)

Sounds like a GREAT plan right?? Well, the Pell program is already facing a new challenge—a shortfall in funding due to a combination of the economic stimulus package ending and increased demand. If the shortfall isn’t closed, the maximum grant under the program will be cut by about $845 for the 2011 academic year. In all, about 9 million students will have their awards reduced if additional funding is not approved.

The republicans on Capitol Hill are talking about cutting almost $9 million from the Pell Grant program. "The Student Aid and Fiscal Responsibility Act was an important step in the right direction. However, reducing the supply of Pell Grants would have the opposite effect and would be sacrificing America’s long-term economic strength on the altar of short-term deficit reduction. That is not a trade any policymaker should be willing to make." (click here for the article)

I can see this getting really messy. Hopefully they come to a consensus about what to do with this issue. Before we know it, this will be worse that the state backing out of the Michigan Promise. When will they see that enough is enough. Americans especially Michiganers can only take so much.

What do you think about this??

Until Next Time...
Lauren!