Though threats to Pell Grant program funding loomed for students after Republican victories in the midterms, a new resolution before the House of Representatives may save students from slashes to federal aid.
Following their electoral takeover of the House last month, Republicans announced plans to cut up to $6 billion in funding for the college aid program.
This fall, the U.S. Public Interest Research Group predicted that Pell Grant financial aid will drop by 15 percent for each recipient following the GOP takeover, and that hundreds of thousands of recipients will lose qualification if Congress does not increase financial aid funding for the 2011-2012 academic year. In September the Republican Party vowed to return federal spending to pre-stimulus levels.
But the planned decreases may not come to pass after all, as the House gears up to vote this week on a continuing resolution that includes a boost to Pell Grant funding sufficient to cover a gap of about $5.7 billion in federal financial aid for the next academic year, according to Associate Vice President for Federal Relations Scott Fleming.
The continuing resolution is a temporary funding measure to keep government services running without approving a federal budget.
Pell Grants are available for low- and middle-income students. About nine million students receive aid from the program each year, with award amounts based on expected family contribution, the cost of enrollment in the institution, enrollment status and duration of attendance. Eligibility is determined through completion of the Free Application for Federal Student Aid.
The proposed cuts were particularly troubling for Georgetown, as 11.1 percent of its students were enrolled in the Pell Grant program in the fall of 2009, according to the Office of Planning and Institutional Research.
During the 2009-2010 academic year, 827 Georgetown students received Pell Grants totaling $3,471,781, University President John J. DeGioia said in a June letter to Speaker of the House Nancy Pelosi (D-Calif.). According to statistics from the U.S. Department of Education, Georgetown ranked 21st in the number of Pell Grant recipients among the nation’s highest-ranked universities for the 2008-2009 academic year.
DeGioia predicted that GU students would lose a total of $500,000 if Congress did not act to increase funding for the grants for the upcoming academic year.
In March, the Health Care and Reconciliation Act of 2010 set a higher cap on the amount of aid able to be awarded per student, from $5,350 in the 2009-2010 academic year to $5,550. The 58 percent rise in total aid possibilities was recorded in the College Board’s Trends in Student Aid 2010 report.
Because of the additional one million students eligible for grants due to the current economic recession, however, the maximum award is projected to be cut by $845 per student next year, according to the U.S. Public Interest Research Groups.
A decline in the amount of federal grant money could also take a toll on the greater number of low-income applicants Georgetown received this year.
“I’m hoping Georgetown is going to continue to have as a priority responding equitably to all populations. And I would think we would based on our history. But it’s going to take money that we don’t have right now,” Dean of Undergraduate Admissions Charles Deacon said.
Despite the proposed cuts, Georgetown remains dedicated to advocating increased funding and providing need-blind admission, said Fleming. According to DeGioia’s letter, Georgetown contributed over $75 million in student financial aid in addition to the aid provided by federal programs during the 2009-2010 academic year.
“At the moment, we are continuing to fight to secure the added Pell Grant funding as Congress sorts out what to do with the fiscal 2011 appropriations bills which are not yet enacted,” Fleming said.
It is currently unclear how funding for the federal departments, including the Department of Education, will be distributed, Fleming said.
The university is also countering the possible decline in aid with an increased emphasis on philanthropy, especially from graduating seniors.
“I’m hoping the senior class doesn’t just give a senior class gift, but walks away knowing that whatever they can give, if Georgetown is worth it to them, that they think others should get there,” Deacon said. “We need to build that culture at Georgetown, but that’s because it’s such an important issue going forward. And I think we’re trying, but it’s hard to do.”
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