Federal student aid programs in jeopardy
By Mike Memoli
The Greyhound (Loyola College-Maryland)
02/11/2003

(U-WIRE) BALTIMORE — Federal funding to some student financial aid programs would be cut this year under proposals currently being debated by Congress and the Bush administration.

Conferees from the House of Representatives and Senate were scheduled to meet last night to begin negotiating a final appropriations bill that includes federal student aid programs. Much of the debate currently centers on the Pell Grant program, which helps low-income families pay college tuition.

The Bush administration announced last week it opposes a Senate bill to increase the maximum Pell Grant by $100 to $4,100. The White House has proposed maintaining the $4,000 limit, while increasing total funding to the program by $1.9 billion to cover its current deficit. Many university lobbyists are working to maintain increases called for in the Senate's bill, citing increased need brought about by increasing enrollment, tuition costs and the weak economy. An estimated 4.4 million students received Pell Grants in 2002.

"Particularly in a time when state budgets are cutting aid programs, particularly for private institutions, the colleges and universities look to the federal government to assist students with paying for college," said Cyndy Littlefield, director of federal relations for the Association of Jesuit Colleges and Universities. "Higher education is usually the first education sector to be cut in tough times. Out of necessity, it's even more important that we keep the pressure on Congress and the administration to keep funding the federal student aid programs."

Littlefield added that the administration's insistence that the Pell Grant program be funded only to cover deficits is misguided since Congress has been able to finance the shortfall separately after the initial appropriation negotiations have finished.

"The Pell Grant usually takes care of itself," Littlefield said. "We are working one to get the maximum grant increased during appropriations, and two trying to take care of the shortfall as best we can."

Despite raising the maximum Pell Grant, the Omnibus Bill passed by the Senate on Jan. 23 would cut or freeze funding to other federal student aid programs across the board. Funding for the Supplemental Educational Opportunity Grant program, which augments Pell Grants for needy students, would drop $21 million to $704 million. The Perkins Loan program, which provides low-interest loans to students from low-income families, would be cut by $5 million to $163 million. These cuts were necessary in order to fund the increase to the Pell program.

"Most people in the higher education community are concerned because the Bush Administration's emphasis has been on K through 12 with the No Child Left Behind legislation," said Mark Lindenmeyer, Loyola's director of financial aid and a member of the College Scholarship Service Assembly Council, which advises the College Board on financial aid issues. "In the long run, that's probably a good thing, because there are a lot of students who aren't being educated properly at that level. But there's a need in higher education too."

"I'm encouraged on one level that they at least have identified Pell as a priority," Littlefield said. "The hope is that we can work the remainder of this year to work towards increasing the maximum grant while also working to take care of the shortfall. This will be a constant process."

According to figures provided by Financial Aid, 1,678 Loyola students currently receive a combined $9.5 million in federal aid, with 249 students receiving Pell Grants.

"We wouldn't be able to enroll the number of students that we enroll and at the level of quality if it weren't for the aid that students are receiving from the federal programs," Lindenmeyer said. "If there is a cutback in the federal student aid programs, the entity that has to make up the difference is the college."

Lindenmeyer said colleges like Loyola with smaller endowments would have more difficulty providing enough aid to compensate for federal cuts. Loyola provided $19 million in institutional aid last year, and as the economy continues to struggle, that number is likely to increase as more families request reevaluations of their financial aid eligibility. But very few students have had to withdraw thus far for financial reasons, he said.

A concern among some college officials was that the weak economy would inhibit the number of applications received for the class of 2007.

Though it was believed that more families would look at less expensive state schools instead of private institutions, Lindenmeyer said that Loyola has seen a slight up tick in applicants this year.

"It's a sizable applicant pool and it's a well-qualified applicant pool, and that's the best of both worlds," he said. "As a result, Loyola's in a pretty healthy position compared to some other colleges."

Copyright ©2003 The Greyhound via UWire

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