Good News-Bad News Scenario for 2006 Pell College Grant Legislation

"The argument is that workers aren’t educated enough to compete (in the global marketplace) so it must be the fault of their teachers. It couldn't be factors like parental involvement, declining school funding, the undermining of science education, rising tuition, cuts in Pell Grants, peer effects, etc. And it couldn’t possibly have anything to do with those tax cuts… " sarcastically blogs Mark Thoma at Economist's View, a group blog by University of Oregon economics professors.

Just before adjourning for August, the House of Representatives Committee on Education finished an extensive two-year look at federal college grants and loan programs. The result was the Higher Education Act (HEA), passed by the House in late July.

And it's a good news/bad news scenario for Pell Grants, need-based grants used by 5 million college students, 1/3 of all undergraduates, to finance their education at 2-year and 4-year schools.

In a nutshell, the good news starting for 2006 is that more colleges are eligible for students to receive Pell Grants, and there is a new flexibility in timing and methods to receive grants. And some welcome nuances were added to eligibility and protection of student grant recipients.

The bad news is financial...of course. Despite Bush campaign rhetoric in 2000 to push the maximum Pell Grant annual amount to $5,100, The maximun grant remains frozen at $4,050 for the 4th consecutive year. (There's a remote chance this could increase by $50 when Congress finalizes the HEA in September.)

And more bad news....the Department of Education tinkered with the financial eligibility formula, resulting in 90,000 students being cut-off from Pell Grants, and another 1.5 million students having their grants drastically reduced.

And some startling new conditions are under consideration for future qualifications to receive Pell Grants. Be sure to read my article, Pell Grants Defined and Updated for 2006, where I summarize all this and more for your quick reading.