How Will Pell Grants Be Affected With President Obama’s Proposal?

Higher education in the United States has long been a major focus but also an area of great debate.  In this country, having a college education provides people with the best opportunity to get ahead by securing a stable and good paying career.  With a college degree, more doors open than without a degree.  Unfortunately, while some people have the means to pay for college or a level of credit to secure student loans, low income people are not as fortunate.

To even the playing field when it comes to a college education, a variety of government programs have been developed over the years, one in particular of importance being the Pell grant.  With financial aid, more than 9 million people in this country have the chance to enter or finish college.  Without this kind of assistance, most of these individuals would never be accepted to college or have the chance to finish the education started.  Although the Pell grant program has faced obstacles before, a recent press conference has stirred up a hornet’s nest.

In this conference, the United States Secretary of Education, Arne Duncan, along with the Assistant Secretary, Carmel Martin, confirmed President Obama’s proposed budget cuts to the Pell grant program, followed by fielding questions.  Sadly, these cuts are a definite sign of the economic downturn that has imprisoned so many people in America.  Making this proposal an even greater concern is the fact that the cuts being discussed are on a grand scale, including new government grants.

During the 2010 midterm election campaign, the Republican side of the House of Representatives suggested a Pell grant reduction for the remainder of the 2011 fiscal year.  For this period, the most students would qualify for would be $4,015 for the 2011 to 2012 academic year, a significant reduction from $5,550.  However, President Obama is now unveiling his own budget proposal specific to the Pell grant program.   With this proposal, over the next 10 years $100 billion would be eliminated starting with funding for the 2012 academic year.

Although the budget cuts would not affect all colleges and universities within the United States, they would certainly prove devastating for many.  Obviously, the concern of school officials is for low income students who would have a difficult, if not impossible time paying to earn a college degree.  Under this new proposal, the final policy would allow people to be awarded two Pell grants.  One would cover education for summer school within a calendar year and the second would lower loan subsidies for students enrolled in a graduate program or earning a professional degree.

Interestingly, students attending certain colleges and universities would not be affected because the school itself has the means or programs in place to make up the difference.  However, a huge challenge is that for most of the impacted colleges and universities, the full burden of these cuts for the Pell grant program would fall back on the educational institution.  In other words, if President Obama’s proposed budget cuts were to receive approval, the reduction in funding would transfer directly from being national budget to a school budget issue.

When looking at the proposed budget cuts on a national level and short-term, it means accessibility of higher education for many people would be eliminated.  However, concerns have been raised regarding the way in which these Pell grant cuts would affect the country long-term.  Without finishing college or being accepted into school, low income people would find it extremely difficult to secure gainful employment, leading to frustration and a sense of hopelessness.

Hearing about President Obama’s proposal for budget cuts specific to the Pell grant program has certainly unnerved many people, both in and out of the educational sector.  Because of this, whether this suggestion will ever come to fruition is yet to be determined.  While the proposal has supporters, it is expected to be fought by others.  A third group of House Representatives feel the proposed information is too new and until all the details have been outlined, taking a stand for or against would be impossible.

Leave a Comment

Previous post: