College Admission Help

Experts: Pell College Grant Hike Will Be Big

Boston Business Journal - by Jesse Noyes
Friday, February 20, 2009
The stimulus package signed into law by President Barack Obama earlier this week includes increases to grants for needy college students that will provide millions of dollars more in student aid at Massachusetts campuses this fall, experts said.
But financial officers are still in the dark on exactly how the money will be distributed.
The maximum amount a student can receive from a Pell grant, which goes to the most needy students, will increase by $500 to $5,350 for the 2009-2010 academic year. It will go up to $5,500 the next year.
That’s a huge increase, financial aid officers said, and will be helpful in holding up retention rates as student need rises in a terrible economy.
“It’s a win-win for the school and the student because the student gets more money and the school in turn is able to retain more students” said Bernie Pekala, director of student financial strategies at Boston College. About 1,000 students received pell grants at BC this past year.
But Pekala said it’s not clear whether the additional funds will be spread out to a greater number of students or whether eligible students will get more money at this point.
Each year the U.S. Department of Education provides colleges with what’s called a “Pell grid” outlining what students are eligible for the grants and how much they are eligible for. Typically, universities will have already received the grid by now, but there’s been a delay as the recent stimulus actions are factored in, financial aid officers said.
It’s unclear whether the eligibility requirements will be changed to give more students access to the funds, experts said.
“Will start packaging students estimated awards in the next couple of weeks,” said Dan Forster, chief financial aid officer at Simmons College, which said about 20 percent of students there are usually eligible for pell grants.
Whether eligibility requirements are changed or not, experts said more students will be eligible for pell grants as family incomes drop because of lost jobs and declining investments.
“Times are tough for students and the more grant money we can offer them to help them afford the cost of education is a plus,” said Joyce McLaughlin, director of financial aid at the University of Massachusetts Lowell.

Experts: Pell College Grant Hike Will Be Big