Minnesota College Students May Miss Out on Pell Grant Increase
In spite of an increase to the maximum federal Pell Grant award of
more than $800 — mandated by President Obama’s stimulus plan —
Minnesota college students may not receive a single percent increase
in funds due to the way the state distributes its Pell Grant awards,
the Minnesota Daily reports (“Students Aren’t Guaranteed Pell Grant
Increase,” March 2, 2009).
In Minnesota, federal Pell Grants — which are awarded to low-income
students based on need — are linked to state grants. Historically,
when a larger amount of Pell Grant money comes into the state than
was expected, the Minnesota legislature reduces state grant awards.
This exact scenario occurred a year after Minnesota received a Pell
Grant fund increase of $55 million in 2003. That year, the local
legislature reduced state grants by about $18 million, resulting in
almost 3,000 fewer students receiving state aid, according to the
Minnesota Office of Higher Education.
“If [students] are getting both the state [grant] and the Pell
[Grant], they’ll keep getting what they’ve always gotten, but I’m
not sure if they will see any significant increase,” said Republican
Sen. Claire Robling, the Senate Higher Education Committee’s ranking
minority member.
Although MOHE, which distributes state aid, assures students that
they should receive at least a portion of the increase from the
stimulus funds, the Minnesota Senate’s Higher Education Committee
members are concerned that the state’s $5 billion budget shortfall
will force the state to redistribute excess student aid funds to
programs that show a greater need than higher education.
At the same time that many students are wondering if they’ll ever
see a portion of the $800 Pell Grant increase, University of
Minnesota president Bob Bruininks says he has earmarked those funds
for a different purpose. Faced with a $151 million budget cut,
Bruininks is hoping that his institution will be able to use the
stimulus money to hold the university’s tuition increase to 10
percent.
Rodrigo Zamith, a journalism senior at the university who receives
Pell Grants, is worried about his bottom line. He’s afraid that
students may start resenting state legislators if they redistribute
the excess Pell Grant funds, intended for college students, to other
programs.
“$800 for students matters a lot,” Zamith said. “For me, that’s two
months worth of rent.”