Students might suffer another blow to their finances if the U.S. Senate approves the U.S. House of Representative’s current budget proposal, which includes a dramatic cut to the Federal Pell Grant.
The current maximum award a student can receive from the Pell Grant is $5,550, said Rich Williams, a higher education advocate for the U.S. Public Interest Research Group. In the House’s budget resolution, he said, they plan to cut this maximum by about $2,500 per year.
This cut would negatively affect the students who receive the Pell Grant because it would force them to make difficult life choices, he added.
“These are students who can’t afford a cut like this,” Williams said. “(They) would have to make tough choices about whether they can stay in school or go to school.”
If the House’s budget proposal is approved by the Senate, the budget will affect the estimated 10 million students whowill use the Pell Grant in the 2012-2013 academic year, Williams said. This will force students to borrow more money in student loans, and according to The New York Times and a news release Williams sent, student loan debt is now nearing one trillion dollars and will likely top that mark this year.
“The reason why you would reduce the deficit in America is so you have the ability to spend money on critical programs that grow and build our economy,” he said. “If this proposal passes, it could slam the doors to graduation shut for millions of students.”
U.S. Representative Jan Schakowsky (D-Ill.), whose district includes Evanston, also said cutting the Pell Grant would severely affect the future of the United States.
“I think that cutting Pell Grants and assistance to young people to get a quality education is counter-productive for the United States,” she said. “The inability to go to college puts at risk the global competitiveness of the United States. It’s not just individuals who can’t reach their full potential, but that our country can’t reach its full potential.”
According to Schakowsky, President Barack Obama’s budget proposal maintains the Pell Grants. The Senate will look at both budgets, and then create its own set of suggestions. She said the president’s budget is merely a recommendation.
“I certainly voted against the cuts,” Schakowsky said. “We’ve seen a dramatic increase in applications for Pell Grants, and I think that’s reflective of today’s economy because a growing number of students are unable to go to college.”
Instead of cutting programs like the Pell Grant for middle- and lower-income families, Schakowsky has introduced a bill called the Fairness in Taxation Act. This bill would create new tax brackets for the wealthiest Americans and make sure there is enough funding for programs like the Pell Grant.
“Why should we be giving the bill to solve the deficit problem to people who had nothing to do with it?” Schakowsky asked.
Some NU students said the cutting of the Pell Grant could only prove detrimental. McCormick junior Jenna Casady said almost all of her education is paid for by financial aid. So far, she has taken out about $20,000 to $21,000 in loans, and she has a parental contribution of about $3,000.
“Essentially, without those grants, I wouldn’t be able to come to school here,” Casady said. “I think it would affect the demographic of students, especially at colleges like this. I expect that less students in lower socioeconomic classes would be able or willing to come here. You’re setting an entire group up for failure and not being able to make it as far.”
Twenty-five-year-old Marley Dzis, a recent Bienen master program graduate, said she has about $36,000 in loans, and they restrict her choices.
“The amount of loans I have is kind of hindering my ability to move out quickly,” she said.
Dzis also added that she doesn’t want to pay money for rent because she would rather give that money to her parents or put it in a savings account. By having the savings account, she would not have to ask for money from her parents in emergencies.
She also thinks American students face more obstacles compared to her friends who get an education in countries that pay entirely for college. “We have an additional challenge in America, especially if you want to go to a good school,” Dzis said.
Besides affecting students, Williams said cutting Pell Grants will also affect adults.
“When the folks who are being displaced by jobs can’t go back to school, it’s only going to hamper our economy’s ability to recover,” he said.
