Bush's budget proposal could help students

BOWLING GREEN, Ohio -- President George W. Bush's recent budget proposal for 2008 could help more needy college students than ever before.

Included in President Bush's $2.9 trillion budget proposal is an increase in the Pell Grant, according to the National Association of Student Financial Aid Administrators.

The Pell Grant, in simple terms, is free money for very low-income students, said Laura Emch, director of financial aid for the university.

President Bush does not have budget authority, so his budget is only a proposal, said Chuck Knepfle, assistant provost and director of financial aid assistance at Miami University,

If passed by Congress, the Pell Grant will have a $1,350 increase over the next five years.

President Bush has already signed legislation for the remainder of the 2007 fiscal year. The legislation will include an increase in the maximum Pell Grant given to a student to $4,310. This rise in maximum Pell Grant award is effective on July 1, according to the NASFAA.

According to the NASFAA Web site, the organization has endorsed the Pell Grant increase.

"An increase hasn't been done in a while, it's not keeping up with inflation," said Emch.

Receipt of the grant is based off of the Expected Family Contribution, part of the Free Application for Federal Student Aid form each student seeking aid is required to fill out.

With the proposed budget, the awarded amount of the grant given will increase along with the range of students eligible to receive the award.

Along with the proposed changes in dollar amount, President Bush's budget also aims to make the following changes in the Pell Grant program according to NASFAA:

Make Pell Grants available year-round at two and four-year institutions.

Limit Pell Grant eligibility to the equivalent of 16 semesters to encourage students to complete their educations in the standard time.

Eliminate the Pell Grant award rule, which limits the amount of support students attending low-cost institutions receive versus high-cost institutions.

But there are some concerns with the proposed eliminations within the budget.

Speculation had been building among college lobbyists that a proposal would include a Pell Grant increase, but would pay for it largely with money taken by ending other student-aid programs, including the Supplemental Educational Opportunity Grant Program, which provides about $770 million a year to low-income students, according to the Inside Higher Ed Web site.

Emch said jokes have been spreading around about the proposal, such as "Robbing Peter to Pay Pell."

Overall educators are pleased with the proposal to increase the Pell Grant, both Emch and Knepfle said.

At both BGSU and Miami, the departments of financial aid anticipate an increase in money received from the Pell Grant.

In 2006, 4,700 students received over $12 million from the Pell Grant at BGSU. Close to 3,000 students at Miami University received over $7 million from the Pell Grant.

For updates on the Pell Grant visit www.nasfaa.org. n