Financial aid scarce

According to a report conducted by the Indiana Education Policy Center, the difficulty accessing financial assistance for college is being partially overlooked by the U.S. Department of Education, particularly a widening of the gap between low and high-income students.\nThe report, entitled "The Access Challenge: Rethinking the Causes of the New Inequality," accuses the department of not placing enough emphasis on the growing inefficiency of federal Pell Grants.\n"What happened is that nationally, prices (for college) have increased a great deal and financial grants have gone down," said Edward St. John, professor of educational leadership and policy studies, who authored the report.\nThe report debates studies conducted on the accessibility of college by the National Center for Education Statistics saying the department "failed to even consider the possibility that financial aid influenced college enrollment."\nThis influence refers to federal Pell Grants given to students based on academic standing and financial need.\nAccording to the report, since 1980, the purchasing power of Pell Grants has decreased considerably. Pell Grants have increased monetarily over the years, but have failed to keep up with the nation's economy, causing a gap between low and high income students.\nThis gap has caused a hardship on low-income students who are unable to pay for college and financial aid is not helping them out as it should, while high-income students are too rich to apply for federal or state need, said St. John.\nThe report also argues that the number of students aided by federal grants has expanded and the number of Pell Grants has actually increased, but the grants itself are worth less compared to the nation's inflation rates.\nSt. John said he places part of the blame on the federal government focusing more on federal loans rather than free money from the government, a process that started during former President Ronald Reagan's administration.\nBill Ehrich, associate director of the Office of Student Financial Aid, said he agrees with St. John, noting that during 1980-81, 80 percent of student assistance are grants and scholarships, while today, 80 percent are loans. \nCollege tuitions have also increased, placing a heavier burden on the student to pay his or her way.\nFor the 2001-02 school year, 4,642 students used the federal grant at IU. The average amount each grant provided was almost $2,400.\nEhrich said he believes IU is a minority when dealing with Pell Grants because IU tends to be a wealthier student body when compared to community colleges, where most Pell Grants are used.\nAlthough federal assistance is not what it used to be, state assistance seems to keep pace with the nation's economy, St. John said.\n"Indiana, surprisingly, has been doing a marvelous job overall as far as state grants," St. John said.\nOver 3,000 students used state grants last year, with an average of $2,473 per grant. \nMost states only provide grants for the amount of the most expensive in-state public school, not taking into account the state's private schools, which are generally more expensive than public schools.\nIndiana, on the other hand, gives far beyond the amount of the highest tuition at a public school, with only California giving out more money in state financial aid.\nDavid Perlini, executive director of the State Student Assistance Commission of Indiana, said Governor Frank O'Bannon protected all of the state's student financial aid from budget cuts this year, but the assistance may not be protected after next year.\n"Indiana was actually faring better and helping our students far better than most states," Perlini said. "The concern is that we will more than likely not be able to maintain that unless we have extraordinary increases (in state funds)."\nDespite concerns in the future for student aid, St. John agreed Indiana is serving as a role model on how to distribute financial aid.\n"A number of states are beginning to look at Indiana as a model to build their state grant programs," he said.