Pell Grants have been rising. Pell grants are designed to help low and moderate income families send their children to college. Because they are grant monies, not loans, they do not have to be paid back. 20011 has brought a surge in proposals to cut the budget, and federally back monies for college is one area that is being targeted.
This spring the House has proposed cutting Pell Grants by $5.7 billion dollars. The effect will be reduce the average grant by $785, and reduce the maximum grant limit to $4,705. The Obama administration has proposed that federal subsidies for secondary education be cut for grants for summer programs and in subsidies for graduate education.
Although Pell grant funding has been going up, so has the cost of tuition. In fact, Pell Grants can not keep up with those costs. 62% of students have already had to change their plans because of having too little money. They may be unable to go to their first-choice school, have to go into two-year rather than four-year program, or not attend college at all.
Although by law colleges have to notify potential students with what their financial package will be by February 1, it looks like this year, they will be awarding students packages that will have to be changed if the budget is cut in this area.
For more information on cutting college costs, financial aid, and financial planning for college, visit the Collegebaiscs website and check out their Paying for College section.
