Pell Grants May Face $6 Billion Shortfall

Paying for College
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<p>"Battered by a worsening economy, college students are seeking federal financial aid in record numbers this year, leading Bush administration officials to warn Congress that the most important federal aid program, Pell Grants, may need up to $6 billion in additional taxpayer funds next year.</p>

<p>Driving the increased applications for federal aid, in part, have been nontraditional students returning to school to improve their job skills during the economic downturn, said Terry W. Hartle, senior vice president for public affairs at the American Council on Education, which represents colleges and universities.</p>

<p>Estimates by the Department of Education suggest that the new president will face an unusually burdensome financing shortfall or the fallout that would accompany trimming the nation’s leading college aid program....</p>

<p>As of July 31, 800,000 more students had applied for grants than on that date last year, according to the memorandum, which called the increase one of the largest ever year to year.</p>

<p>This year, more than six million low-income college students will receive Pell Grants ranging from $431 to $4,731, federal officials said."
<a href="http://www.nytimes.com/2008/09/18/education/18grant.html?_r=1&ref=education&oref=slogin%5B/url%5D"&gt;http://www.nytimes.com/2008/09/18/education/18grant.html?_r=1&ref=education&oref=slogin&lt;/a&gt;&lt;/p>

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<p>I really think that part of the short fall is due to the nontraditional students, as Terry Hartle says in the article. We have an adult program at my institution...geared towards working adults who never completed their college degrees (or started a degree for that matter). We have seen a large influx of students returning to the classroom, partially due to the worsening economy, others have realized how important a college degree has become...and, not surprisingly, many are recently declared independent students who put off attending college until they reached 24, got married, or had their own dependent. 4 years ago, we saw about 25% of our adult (nontraditional) students receiving Pell...now it is closer to 50%.</p>