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Stimulus Outlook Friendly to Pell Grant

by Charles Dervarics , January 15, 2009

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"Tax relief, done in a refundable form, can work hand-in-hand with Pell Grants to ensure more opportunity,” said Rep. Lloyd Doggett, D-Tex. Doggett who sits on the House Ways and Means Committee.

Adding a Pell Grant increase to the next economic stimulus package — a goal of many higher education organizations — is moving closer to reality based on details emerging from the U.S. House of Representatives and Senate.

Congressional Democrats favor a $500 increase in the maximum grant for needy students, at a cost of $15 billion for two years, reports the Politico, a Washington, D.C., newspaper. While the package still is taking shape, education advocates told Diverse they also expect such action based on recent discussions on Capitol Hill.

“I don’t think anyone really opposes it,” said Angela Peoples, legislative director for the United States Student Association (USSA). “We’re definitely excited to hear about that.”

The increase would bring the maximum Pell Grant above $5,000, to $5,231. “This is great news for students,” Peoples said. “There are a lot of families struggling to pay for college.”

Overall, education could receive $140 billion under the stimulus package, including funds for Title I, special education and other K-12 programs, Politico noted.

President-elect Obama has discussed a new economic stimulus package of more than $700 billion, the amount of last fall’s financial sector bailout. In addition to education, dollars would flow to infrastructure projects as well as to states and localities to shore up Medicaid and other health and service programs.

Education groups have offered various Pell proposals in recent weeks. A coalition led by USSA, the American Association of State Colleges and Universities and other groups had recommended a 50 percent increase in the grant, to $7,000. That group also has sought an extra $250 million for college work-study for needy students.

A larger group, including the American Council on Education, has proposed a $700 Pell Grant increase, a gain of 15 percent, along with a doubling of funds for Supplemental Educational Opportunity Grants. The ACE-led group also is seeking infrastructure grants for colleges and universities to build and renovate facilities, with a focus on environmentally friendly “green” construction.

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