On Feb.11, House Republicans proposed cutting the maximum a student can receive from the Pell Grant from $5,550 to $4,705.
The Pell Grant program is a need-based federal program that provides money for low-income students depending on the information from the Free Application for Federal Student Aid. A student’s income, their parents’ income, family size, assets and the number of family members in college are factors that determine who qualifies for the grant and for how much.
Kathleen Strickland, director of State and Federal Grant and Scholarship Programs in the Office of Student Financial Assistance, said, “A student who is given the federal formula, or Effective Family Contribution, of zero is a financially-needy student and the type who is eligible for $5,550 per year, which is the maximum.”
A student can receive money if their EFC score is higher than zero, but they will not receive the maximum amount.
Strickland said if the maximum is cut, financially-needy students will receive less money and those who are not as financially needy will not receive any.
“It will definitely have an impact because we have a big Pell Grant population at NSU,” she said. “In these difficult times, people are having a rough time and the cut is just going to escalate it and make it more challenging to go to school and for people to fund their education.”
Tasha Riddle, freshman psychology major, said, “I’m a financially-needy student who relies on the Pell Grant to get money so without that money I may not be able to go to this college. You may see less students going to NSU since it is so expensive and if we can’t get the money, then we can’t go [here].”
In order to keep the Pell Grant at the current maximum, President Barack Obama’s 2012 budget proposes reducing the Pell Grant issuance from twice a year to once a year, and cutting subsidies for loans for graduate and professional students.
With subsidized loans, the government currently pays the interest on the amount awarded while the student is in school. Strickland said if subsidies are cut interest will accumulate immediately instead of six months after the student graduates.
If the Pell Grant is eliminated, students will be affected starting this summer. If the maximum is cut, students will be affected in the fall 2011 semester.
Strickland said, “We have not started awarding for the 2011/2012 academic year, but we anticipate begging any day now. In a way it’s kind of good because we may have to change those awards [depending on how the Senate votes].”
