Pell Grant funding cut nationwide

Beginning in the fall of 2004, many college students across the country will face a bleak reality. If they are among nearly half of all college students who receive financial aid, they might have to dig a bit deeper into their pockets. The Department of Education recently revised their financial aid formula, which will reduce the amount of aid awarded by $270 million. \nThis type of federal aid is known as a Pell Grant and is distributed to low-income undergraduate students. This past year, the maximum amount of a Pell Grant was about $4,000. However, with the lagging economy and a few other factors, not only is this amount expected to remain stagnant, but a Pell Grant also will be harder to obtain.\nNick Vesper, the director of Policy Analysis and Research for the State Student Assistance Commission of Indiana, compared data from the 1988-89 academic year with this past school year. "In 1988-89, IU-Bloomington college tuition took 8 percent of household income," Vesper said. "In 2003, it took 15 percent and income has been stagnant in Indiana while IU-Bloomington tuition has gone up."\nOn the other hand, Vesper adds that the decrease in aid will not drastically affect all students who receive Pell Grants. A very small population actually will lose their awards and these students will have small Pell Grants to begin with. The majority of those who have large amounts in Pell Grants likely will keep their award, he said.\nThough this comes as good news to many, it does not fully erase the financial difficulties of families who are struggling to pay for college.\nThis problem is especially apparent in Indiana. According to Let's Invest in Families Today or LIFT, 29 percent of Indiana families with children are low-income families in comparison with the national average of 33 percent. Meanwhile, state lawmakers are not matching their student aid give-outs to tuition increases. \nConsequently, some place blame partially on universities. Vesper said he believes Indiana universities could cut tuition costs by reducing unnecessary spending. A sort of "cutting around the edges" revisal on universities' spending habits could noticeably reduce the amount students must pay, he said. In addition to tuition, there are several other student expenses that are too significant to go unnoticed.\nAccording to IU's Office of Student Financial Assistance Web site, a resident dependent freshman will pay about $16,708 in the 2003-2004 academic year. A non-resident freshman will pay about $27,892. This includes room/board, books/supplies, miscellaneous expenses, transportation and additional fees. \nAfter college many new graduates walk off the podium with a degree and a large debt as well. OSFA states that in 2003-04 the average senior graduated with $18,514 of debt. \nVesper said he discourages students from taking out loans unless it is absolutely necessary. In the case that it is, he said he recommends borrowing just enough for the bare essentials. \n"The trick is not to overborrow. Too many students borrow more than they need," Vesper said.\nVesper advises a few other ways to relieve financial troubles, such as a part-time or work/study job, getting rid of a car or foregoing a vacation. He stresses the importance of carefully scheduling classes in order to avoid an expensive fifth year. After all, state and federal aid lasts four years, not five.\nIn order to apply for an Indiana aid, grant or scholarship one must first complete a FAFSA application.\nA FAFSA application can be filled out at www.fafsa.ed.gov.