New Pell Grant rules threaten student aid

Dancarlys Valdez wouldn't be in college if it weren't for the United States government. Like many students, she relies on federal aid to pay for college. But that aid - and her education - is in danger.

Valdez receives a Pell Grant from the federal government. For over 30 years need-based Pell Grants have put low-income students through college without the worry of having to pay the government back.

But under new federal rules created to save the government $300 million, the number of Pell Grants will be cut next fall by 89,000 and almost every type of financial aid nationwide will be negatively hit.

For the 4,500 UB students who receive Pell Grants as financial aid, such planned cuts are a major concern.

"As a low-income student I am worried about how I am going to pay my tuition if the government lowers the grants," Valdez said. "This is a very difficult situation because I also heard that they are going to increase college tuition so I have no idea of how this is going to work out."

According to Terri Mangione, senior associate vice provost for Student Academic Records and Financial Services, the formula for determining Pell Grant eligibility is directly tied to state taxes. Because of the formula's complexity, predicting exactly how many students will lose eligibility and how much they will lose is difficult.

Approximately 30 percent of UB's undergraduate students currently receive Pell awards, and they range from a minimum of $400 a year to a maximum of $4,050. According to Mangione, UB students who rely most on Pell Grants will not be affected by the recent federally proposed cuts.

"The good news is that our highest need students, those who are eligible for maximum Pell Grants will not see a decrease. We are sure about this," Mangione said. "However, I am estimating that approximately 100 to 150 of our current Pell eligible students may see a decrease of approximately $100 per year. These really are just educated guesses at this point."

The students who are at the most risk for losing the greatest amount of money are those currently receiving the minimum award, Mangione said. If their Pell Grant eligibility changes, students could go from receiving a minimum $400 award to none.

That could be a problem from students like Valdez, especially with SUNY tuition scheduled to increase next fall.

"Pell Grants help me a lot because I live with my mom and my two brothers," Valdez said. "My mom cannot afford my college tuition, so Pell Grants pay it for me."

Henry Durand, the director of UB's Center for Academic Development Services, said the Pell Grant reductions are only one in a series of budget cutbacks.

"There will be a squeeze on the middle class students as a result of this," he said.

Despite the cuts, Durand said he believes affected students will still be able to go to college.

"Every little bit helps of course," he said. "But those who are going to lose the funding are receiving the minimum amount so there will be other ways to get that money."

Mahoganey Jackson, a junior nursing major, receives the maximum grant of $4,050 but said she's still worried about losing her various scholarships and paying off her loans.

"The reduction of Pell Grants will make students and parents take out more loans and leave the student more in debt when they graduate," Jackson said.

"Even with that amount I have to take out other loans and at the current rate I will owe $25,000 when I graduate next year," she added. "If the Pell Grant is taken away I will have to get a second job to pay for school and this will interfere with nursing school."

The government should be concerned that more students will drop out of school because debts will keep them from paying for tuition, Valdez said.

In Mangione's opinion, one of the problems is that Pell Grants have not kept up with the pace of tuition increases nationally and at both public and private colleges and universities.

"What this has caused over the last 15 to 20 years is that students with financial needs are receiving less in federal grants and are forced to use a higher percentage of loan dollars to fund their educations," Mangione said. "We are waiting for more information to be able to determine the full impact of the changes on UB students."