The U.S. Department of Education is planning to update tax information for the 2004-05 academic year, possibly cutting the amount of federal Pell Grants awarded to students, although Northwestern might be in the clear.

State tax tables are one of the variables in a formula that determines how much financial aid for which a student can qualify. Until now the department has been using tax figures from 1988, but data from 2000 will be used next year.

Because tax rates were lower in 2000 than in 1988, the estimates for the what parents can contribute will be higher because, theoretically, parents will have more money to contribute — reducing the need for Pell Grants.

But the low tax rates of 2000 might not be a reality any longer. Since 2000 the sluggish economy has meant many states have jumped the tax rates back up — meaning the amount families can actually pay now is less that what estimates from the low 2000 tax rates would indicate.

“Since 2000, states have actually raised taxes, so the tax information is not accurate (for) today, ” said Jacqueline King, director of Center for Policy Analysis at the American Council on Education in Washington, D.C.

Some people opposed to the change in the formula said it is ill timed because it couples a reduction in aid with rising tuition costs. Rebecca Dixon, associate provost for university enrollment, said tuition has risen every year she has worked at NU.

“Now (raising tuition) is absolutely commonplace,” she said.

Pell Grants are one component of the financial aid award, but unlike loans, they do not have to be repaid. The maximum award amount varies each year, depending on program funding — this year’s maximum is $4,050.

Medill freshman Raymond Garcia said he would have to be more resourceful if his Pell Grant award was reduced.

“Even if (financial aid awards) do go lower, I will still be able to attend,” Garcia said. “I would just look for outside scholarships to make up the difference.”

But students at NU might not notice much of a difference. Dixon said NU uses tax tables prepared by the College Board, which she said are up to date, to determine the expected family contribution. Government changes then would not immediately affect NU students.

“We are as liberal as we can be because we take other factors into consideration as much as possible,” Dixon said.

There also has been a movement in Washington to block the proposed tax-table changes.

Sen. Jon Corzine, D-N.J., pushed an amendment through the U.S. Senate to stop the Department of Education from changing its formula. Corzine drew support from a Congressional Research Service report, saying that updating the tables would leave 84,000 students without aid.

Supporters of the amendment include the American Association of Community Colleges, the American Council on Education, the U.S. Student Association, and the United Negro College Fund.

But supporters of the Department of Education argue that it is not possible to gauge exactly how many students will lose aid, and higher-income students might be the only ones affected. In the recent annual budget recommendation for education, the U.S. House suggested increasing Pell Grant funding by $1 billion.

But for some students, changes to their Pell Grants won’t impact their education.

“I wouldn’t worry about it,” said Grace Delos Santos, a Weinberg senior. “My parents value my education too much to let this (reduction in financial aid) supercede all financial burdens.”