Washington, DC – U.S. Senators Susan Collins (R-ME), Edward Kennedy (D-
MA), Norm Coleman (R-MN), and Russ Feingold (D-WI) are calling for an increase
in the amount of money given to students who qualify for Pell Grants. The
Senators are urging Office of Management and Budget Director Rob Portman to
increase the maximum Pell grant award in the President’s fiscal year 2008
budget.
The current maximum Pell grant award of $4,050 has not been raised in
more than five years, and due to rising tuition costs, the Pell grant does not
yield the same purchasing power as it has in the past. Today, the maximum
Pell grant award covers only 33 percent of the average cost of attending a
public, four-year institution, compared to 30 years ago when it covered 80
percent of these costs. As a result, students are becoming more dependent on
federal and private loans to finance their college education. The Senators
wrote a bipartisan letter to Director Portman seeking the increase.
“The price of a college education continues to rise at public and private
institutions all over the country. We must do all we can to keep the doors to
higher education open and accessible to all students, particularly the most
disadvantaged students,” said Senator Collins. “Pell grants make the
difference in whether students have access to higher education, and a chance
to participate fully in the American dream.”
“Students and families are pinching pennies and going into deep debt to
afford college,” said Senator Kennedy. “Raising the maximum Pell grant – the
lifeline to college for low-income and first-generation college students –
should be at the top of the nation’s agenda for higher education to ensure
students don’t have to mortgage their futures in exchange for a college
degree.”
“Education is the foundation upon which the idea of equal opportunity
rests. However, with tuition rates at an all time high, many working families
are finding the financial burden insurmountable,” said Senator Coleman. “Pell
grants have made college more affordable and accessible to millions of
students. By increasing the award amount we can continue to make a college
education a reality for many more, while strengthening our nation’s ability to
compete in a global economy.”
“The Pell Grant award provides critical help to many young Americans who
hope to continue their education,” Senator Feingold said. “This widely
successful program has helped millions of Americans, regardless of income
status, make higher education a reality. By opening the door to higher
education, we are investing in the future of this nation.”
The Pell grant program is one of the most successful federal need-based
aid programs in our nation’s history. It has been instrumental in helping
millions of lower-income students fulfill their dream of pursing a college
education. But its stagnant funding and the growing reliance on student loans
are having particularly strong deterrent effects on students from low-income
families and their decision on whether to attend college. One study found that
students who rely on aid to afford college tuition costs are significantly
less willing to finance their education through borrowed money than their
economically wealthier counterparts.