Obama approves larger Pell Grants
Luke Smith
Issue date: 2/4/10 Section: News
One of the things included in President Obama's budget blueprint is an expansion of the Pell Grant program to nearly $35 billion in aid for next year.
That would amount an increase of over 92 percent for the educational federal grant program since the President was inaugurated. As a result of this increase, eligibility for the program would extend to an additional one million students and bring maximum annual awards to $5,350 to $5,710.
When Obama's budget is released on Monday, it will include a proposition (and Obama's second attempt) to make the Pell Grant an entitlement program like Medicare or Social Security.
If the Pell Grant becomes an entitlement, it would be guaranteed to everyone eligible, which would also obligate Congress to fund the program for all who qualify. The program is currently experiencing difficulties in the budget-making process; because of this, the grants are smaller than the maximum authorized by law.
In his State of the Union address, Obama indicated that college affordability would be a key component of his 2011 budget.
He also unveiled a series of proposals. One such proposal would offer a $10,000 tax credit for four years of college as well as a requirement that graduates pay only 10 percent of their income on federal student loans. Another proposition included in the budget is forgiveness of a student's debt after 20 years for most graduates; for those who select careers in public service, that would happen after 10 years.
Bearing the name of U.S. Senator Claiborne Pell of Rhode Island, the program has become perhaps the most widely utilized means of financial aid to undergraduates. An administration official said Friday that "Pell Grants function much like an entitlement, yet they are funded through an annual appropriations process that can fall behind actual demand for the grants." The official also said that the President hoped his second attempt would "address the recurring shortfalls in the program once and for all." Obama will have to fight on Capitol Hill to make the grant an entitlement; he suggested the idea to Congress last year, but it was rejected.
Under Obama's budget, $34.8 billion in Pell Grant aid would be available. When he took office, $18.2 billion was available. More than 8.7 million students would benefit from the plan, compared with 7.7 million in the current school year.
That would amount an increase of over 92 percent for the educational federal grant program since the President was inaugurated. As a result of this increase, eligibility for the program would extend to an additional one million students and bring maximum annual awards to $5,350 to $5,710.
When Obama's budget is released on Monday, it will include a proposition (and Obama's second attempt) to make the Pell Grant an entitlement program like Medicare or Social Security.
If the Pell Grant becomes an entitlement, it would be guaranteed to everyone eligible, which would also obligate Congress to fund the program for all who qualify. The program is currently experiencing difficulties in the budget-making process; because of this, the grants are smaller than the maximum authorized by law.
In his State of the Union address, Obama indicated that college affordability would be a key component of his 2011 budget.
He also unveiled a series of proposals. One such proposal would offer a $10,000 tax credit for four years of college as well as a requirement that graduates pay only 10 percent of their income on federal student loans. Another proposition included in the budget is forgiveness of a student's debt after 20 years for most graduates; for those who select careers in public service, that would happen after 10 years.
Bearing the name of U.S. Senator Claiborne Pell of Rhode Island, the program has become perhaps the most widely utilized means of financial aid to undergraduates. An administration official said Friday that "Pell Grants function much like an entitlement, yet they are funded through an annual appropriations process that can fall behind actual demand for the grants." The official also said that the President hoped his second attempt would "address the recurring shortfalls in the program once and for all." Obama will have to fight on Capitol Hill to make the grant an entitlement; he suggested the idea to Congress last year, but it was rejected.
Under Obama's budget, $34.8 billion in Pell Grant aid would be available. When he took office, $18.2 billion was available. More than 8.7 million students would benefit from the plan, compared with 7.7 million in the current school year.
Viewing Comments 1 - 2 of 2
John Seagle
posted 2/10/10 @ 11:40 AM CST
With the costs of college rising, Pell Grants are needed more than ever. Great article, Luke, and well-written!
brebdonera
posted 3/22/10 @ 9:26 PM CST
Good scene, interesting post, thanks.
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