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Despite Higher Pell Grant, Budget Has Few Other Increases

by Charles Dervarics , February 22, 2007

Despite Higher Pell Grant, Budget Has Few Other Increases
Tribal colleges to take a financial hit.

By Charles Dervarics

Despite proposing a large Pell Grant increase for next year, President Bush’s 2008 education budget falls short of goals set by higher education advocates on several fronts, including financial aid and help for minority-serving institutions.

The president’s budget for next year proposes a $550 increase in Pell Grants, bringing the top award to $4,600 — the first increase in nearly five years. “The president’s action will help make the dream of a college education the reality for more Americans,” Education Secretary Margaret Spellings said in presenting the document.

If approved by Congress, Bush’s Pell proposal would surpass the $4,310 grant level proposed by Democratic congressional leaders for fall 2007.

But higher education groups are seeking a bigger increase for 2008 — all the way up to $5,100 next year. Obtaining that figure is the chief priority of the Student Aid Alliance, an umbrella group of leading higher education organizations including the National Association for Equal Opportunity in Education.

The Bush budget also would pay for its Pell increase by cutting other programs. High on the chopping block is the Supplemental Educational Opportunity Grant program, currently funded at $770 million. The program would be eliminated under the 2008 spending plan.

SEOG can provide an additional $4,000 to Pell-eligible students, and the Student Aid Alliance is campaigning to raise funding for that program to $1 billion.

But now advocates will have to go to Capitol Hill and fight just to keep the program alive.

The Education Department said SEOG has awarded funds “under an outdated statutory formula” that does not always reflect the greatest need. It also said SEOG funds would be better “redirected” to the Pell Grant.

Other aid programs slated for elimination include the campus-based Perkins Loan program and Leveraging Educational Assistance Partnerships, which provide states with financial incentives for funding their own need-based student aid programs.

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