Clay Collin/Collegiate Times
A higher education overhaul that allows for an increase in Pell Grant funding at universities has been signed by President Barack Obama as a part of the health care reform bill.
Students will now receive federal financial aid directly through the government instead of working through middleman lending agencies. Obama contends this stipulation will make an extra $68 billion available over the next decade, much of which will be funneled into Pell Grant funding.
The bill was signed Tuesday morning after passing the House and Senate, despite Republican opposition to the health care package.
Virginia Tech representatives are contemplating the effects that the funding increase could have on the university.
According to Mildred Johnson, director of the undergraduate admissions department, Pell Grants could affect an institution’s enrollment and the applicant’s choice to apply.
“I would certainly think that students would choose to apply more based on the amount of funds given to them, but that’s no guarantee,” Johnson said.
A student’s decision to go to a college depends largely on factors such as the reputation that a school has earned or the opinions of current students, said Johnson.
However, in some cases, a student’s financial background could play a role in the selection of an institution in situations such as the availability of financial aid and the cost of tuition, particularly for students from lower income families.
During the 2008-09 academic year, 2,752 Tech students received a more than $8.9 million in Pell Grants, according to Barry Simmons, director of scholarships and financial aid. For the current school year, the maximum grant is $5,350. Obama expects the maximum grant to rise to $5,975 by 2017.
“We want to have students to be able to afford to come here, but I do believe they would rather elect to go to other places if we don’t put forth competitive financial aid awards,” Johnson said.
On the other hand, Simmons does not believe that the Pell grant increase would make a significant difference in a prospective student’s decision.
“I don’t think the scale of the change will be enough to influence student behavior positively or negatively,” Simmons said. “It’s not that we don’t appreciate the increase. It’s just that increase in itself will help students, but that’s not going to make or break any of their decisions.”
“I chose to come here because I wanted to come here, but money wasn’t the main issue,” said Christien Byun, a Tech student who receives Pell Grant funding.
“I didn’t make my decision based on the cost of the school,” Byun said.
The reform also lowered monthly payments for Pell Grant recipients from 15 percent of discretionary income to 10 percent of discretionary income.
A version of this article appeared in the Mar 31 issue of the Collegiate Times.
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More Federal interference where it doesn't belong...here come higher tuitions.
It sounds all nice a rosy when the federal gov't can front the money to anyone who wants to go to college, but the effects are rising tuition and rising student debt.
Obama should take the money and pay off the country's debt instead of watering-down higher education.
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Water down higher education? Allowing qualified students come to tech increases our quality. If they're smart enough to get in I'd much rather have them come here than go somewhere else just because it's cheaper.
As for rising tuition, that's caused by rising costs and a reduction in state funds, which leaves student's to pick up the rest of the cost. Some students having $5,000 of their yearly tuition paid for doesn't do it.
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Yes it does water down higher education b/c Universities have more and more applicants to choose from, but in return they move to letting in more and more students every year. The costs for accomodating these students is very high and all the while the University is competing with other universities for the best students. Therefore, the schools will spend money on many perks to draw students that really don't enhance the learning process.
Meanwhile, with state budges being cut schools will have to raise tuition and cut jobs to balance out costs of attracting and accomodating an increasing number of students. One of these costs is having most beginner classes tought by TA's in large auditoriums rather than professors, b/c the professors are needed for the upper-level classes.
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In addition, many more students will be let in to schools in general b/c of the increase in federal funding. This again, sounds like a good thing, but in reality can give misguided hope to those students that don't actually belong in college in the first place.
Some of these students may have not had sufficient schoolwork to prepare them for college which is unfortunate but if they go to college and don't graduate they then are stuck with levels of debt that are very hard to pay off without a degree.
Other students may have had the schoolwork necessary to complete college but don't have the drive or work ethic to graduate and they too would be better served had they never attended college.
There are plenty of scholarships available from private institutions and colleges that can help alleviate the costs of higher education. However, without federal funding for student loans, college costs would be dramatically less and student debt would not be as big an issue at it currently is.
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