Cut in Pell Grants Would Disrupt Student Plans

If there's one thing about the looming government shutdown and budget-pruning process that is upsetting everyone from Wall Street to college campuses, it's the uncertainty that Congressional bickering has produced.

Take Pell Grants, for example.

The House voted last month to slice Pell Grants by $5.7 billion and the Senate is expected to vote soon. Meanwhile, low- and moderate-income students are unable to finalize their college plans for next year.

The federal Pell Grants are given each year to the neediest students who qualify for financial aid. Unlike loans, they do not have to be repaid.

The measure now before Congress would cut the maximum yearly grant from $5,550 to $4,705, according to educators. Nationwide, about 1.7 million students would become ineligible for the program.

It's not just the cuts that hurt, it's the timing.

Since February, financial aid offices across the country have been mailing out financial aid estimates to students and families so they can begin to budget for their education and plan for the upcoming year. Polling done by U.S. PIRG showed 9 out of the 10 largest 4-year public colleges have already sent financial aid package estimates for families to begin planning.

New students must declare their plans by May 1st, an almost unattainable deadline if the proposal to cut Pell Grants is realized.

“Beyond the dollars and cents, cutting Pell Grants has real consequences,” said Rich Williams, U.S. PIRG’s Higher Education Advocate. “The millions of students who experienced the joy of opening their college acceptance letter just months ago will now be devastated opening a letter telling them that Congress just cut their financial aid.”

Rick Shipman, Director of Financial aid for Michigan State University, agreed.

“It is important to provide students who apply for financial aid with the best available information as early as possible so that they can make informed decisions about what school to attend and how to finance their educational expenses," Shipman said “I dread having to send letters to thousands of students basically saying - although we thought you could afford college, unfortunately Congress has cut your Grant and it looks like you can't afford school after all.”