Report states more need-based aid necessary

A new report issued by the Institute for Higher Education Policy, a non-partisan research group, and Scholarship America, an organization distributing student financial aid, reports not all qualified high-school students from low-income backgrounds may be able to obtain aid to help them attend college.\nBased on a cost-benefit analysis of student-aid financing, authors of the report titled "Investing in America's Future: Why Student Aid Pays Off for Society and Individuals," linked increased student aid to many societal benefits, including higher tax revenue, lower unemployment, greater productivity, reduced reliance on public assistance, decreased crime and increased quality of health. \nThe report says although the societal benefits can best be achieved through need-based grants, in the past 30 years, need-based financial aid has gone from 61 percent of all federal student aid to 22 percent. \nJamie P. Merisotis, president of the Institute for Higher Education Policy, said in a press release there is no problem with promoting academic merit, but if merit grants replace need-based aid, "we are doing a disservice to low-income populations. That support is important because we all benefit as a society from that investment. It's not about them -- it's about our collective interest as a nation."\nThe report also shows during the past 20 years, the gap in college-going rates between affluent and needy students has hardly moved. The report also predicts, if current levels on need-based aid financing continue, the gap will continue to widen.\nThis phenomenon has been occurring at major universities all over America, including IU, said Bill Erich of the IU Student Financial Aid Office.\n"We are getting, especially at main-line institutions, a wealthier student body," he said. "In 1990, over 18 percent (of college students) were eligible for Pell Grants (a major need-based financial aid). Today it's less than 15 percent."\nErich also emphasized the lack of choice of schools for low-income students. \n"The last year that anyone could go to the school of their choice, provided they could get in, was 1980-1981," he said. "Choice is being more and more limited. Whether you have a choice is based far more on family income."\nThe report suggests to remedy the current trend, the federal government double the maximum Pell Grant to $8,000 from the current $4,050. They also suggest student aid be refocused toward need-based grants and policy-makers work more closely with the private sector to secure revenue for scholarships. \nJunior Ann Stone failed to obtain financial aid because her family income was too high. However, Stone feels need-based aid is more important and should be emphasized. \n"I can afford (to attend college), and I wouldn't want to take money away from people who need it," she said. "I would feel really selfish."\n-- Contact staff writer Jenny Kobiela at jkobiela@indiana.edu.