House Republicans Would Slow Spending on Pell Grants to Help Balance Budget

SP
Sandra Phoenix
Wed, Mar 18, 2015 11:30 AM

The Chronicle of Higher Education
March 17, 2015

House Republicans Would Slow Spending on Pell Grants to Help Balance Budget

By Kelly Field
Republicans in the U.S. House of Representatives unveiled a budget blueprint on Tuesday that would slow spending on Pell Grants as part of an effort to balance the federal budget.
The plan, which would slash spending by $5.5 trillion over the next decade, would freeze the maximum Pell Grant for 10 years and roll back some recent expansions of the program. The plan is for the 2016 fiscal year, which starts on October 1, but it would set spending priorities for the coming decade.
According to the budget, the changes in the Pell program would make it "permanently sustainable, so that it is able to serve students today and in the future."
While the program now runs a surplus, it is expected to face a shortfall as early as 2017. The Department of Education has estimated that a quarter of recent growth in the program's cost is due to increases in the maximum award that have taken place under President Obama. Fourteen percent is due to recent changes in the needs-analysis formula that have made more students eligible for the grants.
"Increasing eligibility to those with higher incomes drains resources from those who need the most help," the budget reads.
But consumer advocates, like officials at the Institute for College Access and Success, warn that the cuts, if enacted, will force millions of low- and moderate-income students to borrow more, drop out, or forgo college altogether. In a news release, they pointed out that the program's costs have actually declined 20 percent since 2010 and are expected to remain level for a decade, after adjusting for inflation.
"Congress should not balance the federal budget on the backs of students," said Pauline Abernathy, vice president of the institute, known as Ticas.
House Republicans have proposed similar cutshttp://chronicle.com/article/House-Republicans-Propose/145653/ in Pell Grants in past budget blueprints, to no effect. But this year is different because the party now controls both chambers of Congress. The Senate is expected to release its own spending plan on Wednesday.
Kelly Field is a senior reporter covering federal higher-education policy. Contact her at kelly.field@chronicle.com.mailto:kelly.field@chronicle.com Or follow her on Twitter @kfieldCHE.https://twitter.com/kfieldCHE

SANDRA M. PHOENIX
Executive Director
HBCU Library Alliance
sphoenix@hbculibraries.orgmailto:sphoenix@hbculibraries.org
www.hbculibraries.orghttp://www.hbculibraries.org/
800-999-8558, ext. 4820
404-702-5854
Skype: sandra.phoenix1

1438 West Peachtree NW
Suite 200
Atlanta,GA 30309
Toll Free: 1.800.999.8558 (LYRASIS)
Fax: 404.892.7879
www.lyrasis.orghttp://www.lyrasis.org/
Honor the ancestors, honor the children.

The Chronicle of Higher Education March 17, 2015 House Republicans Would Slow Spending on Pell Grants to Help Balance Budget By Kelly Field Republicans in the U.S. House of Representatives unveiled a budget blueprint on Tuesday that would slow spending on Pell Grants as part of an effort to balance the federal budget. The plan, which would slash spending by $5.5 trillion over the next decade, would freeze the maximum Pell Grant for 10 years and roll back some recent expansions of the program. The plan is for the 2016 fiscal year, which starts on October 1, but it would set spending priorities for the coming decade. According to the budget, the changes in the Pell program would make it "permanently sustainable, so that it is able to serve students today and in the future." While the program now runs a surplus, it is expected to face a shortfall as early as 2017. The Department of Education has estimated that a quarter of recent growth in the program's cost is due to increases in the maximum award that have taken place under President Obama. Fourteen percent is due to recent changes in the needs-analysis formula that have made more students eligible for the grants. "Increasing eligibility to those with higher incomes drains resources from those who need the most help," the budget reads. But consumer advocates, like officials at the Institute for College Access and Success, warn that the cuts, if enacted, will force millions of low- and moderate-income students to borrow more, drop out, or forgo college altogether. In a news release, they pointed out that the program's costs have actually declined 20 percent since 2010 and are expected to remain level for a decade, after adjusting for inflation. "Congress should not balance the federal budget on the backs of students," said Pauline Abernathy, vice president of the institute, known as Ticas. House Republicans have proposed similar cuts<http://chronicle.com/article/House-Republicans-Propose/145653/> in Pell Grants in past budget blueprints, to no effect. But this year is different because the party now controls both chambers of Congress. The Senate is expected to release its own spending plan on Wednesday. Kelly Field is a senior reporter covering federal higher-education policy. Contact her at kelly.field@chronicle.com.<mailto:kelly.field@chronicle.com> Or follow her on Twitter @kfieldCHE.<https://twitter.com/kfieldCHE> SANDRA M. PHOENIX Executive Director HBCU Library Alliance sphoenix@hbculibraries.org<mailto:sphoenix@hbculibraries.org> www.hbculibraries.org<http://www.hbculibraries.org/> 800-999-8558, ext. 4820 404-702-5854 Skype: sandra.phoenix1 1438 West Peachtree NW Suite 200 Atlanta,GA 30309 Toll Free: 1.800.999.8558 (LYRASIS) Fax: 404.892.7879 www.lyrasis.org<http://www.lyrasis.org/> Honor the ancestors, honor the children.