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For Immediate Release:
1/14/2005
Contact:
Luke Swarthout, 202-546-9707
Luke Swarthout, 202-546-9707 x333
U.S. PIRG

President's Pell Grant Proposal Solves a Budget Problem in Washington, But Does Nothing for the Budgets of Students and Their Families

On Thursday, President Bush proposed changes to the Pell Grant program that would increase the maximum Pell award by 2.5 percent a year for the next five years, a move that student advocates criticized for failing to even keep pace with inflation.
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The funding increase would fall even farther short of keeping pace with yearly tuition increases, which topped 10.5 percent at public colleges last year, according to The College Board. The President's plan would actually reduce the percentage of tuition and fees that the maximum Pell award covers from 79 percent to 54 percent over the next five years for in-state students at four-year public colleges, given projected tuition increases.

"By calling this a plan to make college more affordable, President Bush isn't being honest with America's students and families," said Kate Rube, higher education advocate with the State Public Interest Research Groups (PIRGs), "In reality, this proposal would actually increase the gap between tuition and available student aid, and put affordable higher education even farther out of reach for millions of students."

Pell Grants, which assist more than 5 million needy students nationwide, have declined in purchasing power over the past three decades. Last year's (2003-04) maximum Pell scholarship was worth nearly $800 less, when adjusted for inflation, than the maximum Pell award in 1975-76.

"Nearly half a million qualified high school students forego college each year because of the cost, and millions more take on huge amounts of debt to pursue higher education," said Rube. "Rather than turning the tide, the President's proposal keeps us on the same downhill path."

During his first campaign, President Bush stated that he would increase the maximum Pell Grant to $5,100 by the end of his first term. The proposed Pell Grant changes would fall $550 short of that amount by 2010.

The President's proposal would also fund a multibillion dollar shortfall that currently exists in the Pell program, which student advocates said is a positive step to keep the program's books balanced. "But covering checks that have already been written does nothing to help students and their families today," said Rube.

Over the last year, tuition at the average public college has increased by 10.5 percent, while the average private institution's tuition has increased by 6 percent.
The State PIRGs' Higher Education Project is calling on Congress to prioritize making college affordable by increasing funding for student aid and increasing the maximum Pell Grant by $450 this year, to $4,500. "Providing for additional student aid funding, which will result in more college graduates in our country, is one of the best investments our federal government can make," said Rube.

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