Pell goes up, but so does tuition

The near-doubling of Pell Grant funding hasn’t decreased borrowing by low-income students, writes Ben Miller, a senior policy analyst at the New America Foundation, in the Chronicle of Higher Education. Federal dollars are “gobbled up by insatiable college budgets” and used to offset state cuts in higher education spending.

The increased funding for Pell Grants provided colleges across the country with billions of dollars in additional revenue and resources. And it had arguably the least restrictive requirements of any stimulus dollars. Colleges did not have to ensure that Pell dollars supplemented and did not supplant funds already provided by states and schools. States were not told to avoid cutting their postsecondary budgets, as they were in other programs. This lack of strings left states and colleges free to slash support, increase tuition, and use Pell to make up the difference.

The federal government did not even ask for more transparency about whether colleges successfully graduated students getting this aid—a common last gasp attempt at oversight. Rather, colleges took the dollars and continued the same trend of increasing prices they’ve been following for decades.

The federal government needs to protect the purchasing power of federal student-aid investments and demand “transparency about basic outcomes like completion,” writes Miller.


POSTED BY Joanne Jacobs ON June 11, 2014

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[…] hasn’t decreased borrowing by low-income students, who are supposed to be the beneficiaries. States have cut funding and colleges have raised tuition using federal aid to make up the […]

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