With the nation’s financial system in turmoil, many education leaders are calling for Congress and President-elect Barack Obama to earmark funding for schools and college students in a new economic stimulus package to help prop up the economy.

The Student Aid Alliance, an umbrella advocacy organization that includes historically Black colleges and Hispanic-serving institutions, is asking Congress for an immediate $500 increase in the maximum Pell Grant. Help for students and families paying for college should be “an integral part” of a new stimulus bill, the group says.

“History shows that during economic downturns and periods of job loss, Americans turn to postsecondary education,” according to a letter jointly written by alliance co-chairs, Molly Corbett Broad, president of the American Council on Education, and Dr. David Warren, president of the National Association of Independent Colleges and Universities. A Pell Grant increase would provide a maximum grant of $5,300, or enough to cover 80 percent of average tuition and fees at a four-year public college or university.

“This would help over 5 million Americans make the choice between unemployment or retraining, between dropping out of college or continuing their education,” the letter states.

Pell Grant applications also are up by about 10 percent this year, as more needy students apply for aid, the leaders noted. The program already faces a $3.4 billion shortfall because of heavy recent use of the program. In addition to increasing the maximum Pell Grant, Congress should use the next stimulus bill to retire the remaining shortfall, the alliance said.

Alliance members include the United Negro College Fund, the National Association for Equal Opportunity in Higher Education and the Hispanic Association of Colleges and Universities.

But with automakers, lenders and other industry leaders fighting to get government aid, the prospect of new higher education funding is murky. K-12 education groups also are seeking funds from any new economic stimulus package. These advocates are targeting school repair and construction, saying that such projects could provide jobs and improve student learning.