2008 Woodie Awards
Federal budget calls for increase in Pell grants, elimination of FSEOG
Staff Editorial
Issue date: 2/26/07 Section: Opinion
- Page 1 of 1
AS PRESIDENT BUSH presented recommendations for the 2008 budget, Congress was wrapping up appropriations for the remainder of 2007.
As part of the 2007 package, Congress raised the maximum Pell grant to $4,310 from $4,050. This will be the first increase since a $50 raise in 2003.
Many say these increases were long overdue, and the White House agrees. As Congress debated increasing Pell grants for the 2007 budget, administration officials announced that they would be recommending a historic increase as part of their 2008 budget plan.
If successful, the recommendation would raise the maximum Pell grant to $4,600.
The budget proposal also calls for raising academic competitiveness grants by 50 percent to $1,125 for freshman and $1,950 for sophomores.
Academic competitiveness grants are designed to supplement Pell grants for students who have completed advanced studies in high school. The White House estimates that 660,000 students will be eligible for these grants.
These recommended raises would be coupled with the elimination of the Federal Supplemental Educational Opportunity Grant, which will affect an estimated 1.4 million students.
FSEOG augments Pell grants for students with exceptional financial need. The current maximum FSEOG is $4,000. However, these maximums can vary depending on a university's participation. For example, our university allows for a $600 maximum FSEOG.
Additionally, the budget recommendation calls for cuts in loan subsidies to private lenders who participate in federal loan programs.
It is difficult to know if the pairing of small raises in Pell grants and academic competitiveness grants with the elimination of FSEOG and cuts in loan subsidies will be effective in helping to alleviate the burden of the cost of a college education for talented low-income students.
Hopefully, the final budget passed by Congress will clearly address these concerns.
As part of the 2007 package, Congress raised the maximum Pell grant to $4,310 from $4,050. This will be the first increase since a $50 raise in 2003.
Many say these increases were long overdue, and the White House agrees. As Congress debated increasing Pell grants for the 2007 budget, administration officials announced that they would be recommending a historic increase as part of their 2008 budget plan.
If successful, the recommendation would raise the maximum Pell grant to $4,600.
The budget proposal also calls for raising academic competitiveness grants by 50 percent to $1,125 for freshman and $1,950 for sophomores.
Academic competitiveness grants are designed to supplement Pell grants for students who have completed advanced studies in high school. The White House estimates that 660,000 students will be eligible for these grants.
These recommended raises would be coupled with the elimination of the Federal Supplemental Educational Opportunity Grant, which will affect an estimated 1.4 million students.
FSEOG augments Pell grants for students with exceptional financial need. The current maximum FSEOG is $4,000. However, these maximums can vary depending on a university's participation. For example, our university allows for a $600 maximum FSEOG.
Additionally, the budget recommendation calls for cuts in loan subsidies to private lenders who participate in federal loan programs.
It is difficult to know if the pairing of small raises in Pell grants and academic competitiveness grants with the elimination of FSEOG and cuts in loan subsidies will be effective in helping to alleviate the burden of the cost of a college education for talented low-income students.
Hopefully, the final budget passed by Congress will clearly address these concerns.
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