Pell Grant faces a shortfall as more people head back to school in uncertain economic times.

It’s “the mother of all shortfalls,” according to one Washington insider. Others worry that it may get lost amid the nation’s larger financial crises involving banks and mortgage lenders.

But one thing is increasingly clear: Fueled by a declining economy that has many lowincome Americans returning to school, the Pell Grant program is facing a growing shortfall that soon may reach $6 billion.

“It’s such a large figure that Congress and the administration cannot ignore it,” says Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers.

In calling it “the mother of all shortfalls,” Nassirian tells Diverse that it will dwarf past shortfalls, including the one that followed the Sept. 11 terrorist attacks.

The last shortfall was exacerbated by Sept. 11 and the economic slowdown that followed. The shortfall was about $1.3 billion in late 2001 and, with Congress taking no action, it grew to $2 billion in the 2002 and $3.7 billion in 2004. Congress finally paid it off in 2006, when it was $4.3 billion.

“It’s just huge,” he tells Diverse. “Ignoring it would bring draconian cuts.”

More than 6 million students are slated to get a Pell Grant this school year, with amounts ranging from $400 to $4,700. Congress and President Bush agreed to spend $14 billion on the program this fiscal year, but that amount is not sufficient to meet the huge demand.

Pell’s structure is such that shortfalls are not uncommon, given the ups and downs of the U.S. economy. As Nassirian notes, the program is in many ways an “entitlement,” meaning that anyone who qualifies based on income is entitled to funding. Yet the number of recipients may fluctuate from year to year, particularly when a spike in jobless rates and uncertain employment prospects are sending many young adults back to school.