Minnesota College Students May Miss Out on Pell Grant Increase

Student Loan Girl — Thu, 05 Mar 2009 20:48:00 GMT

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.”

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Congress Joins States and Colleges in Efforts to Reduce Soaring Textbook Costs

Student Loan Girl — Mon, 03 Mar 2008 07:09:00 GMT

With the average college student now shelling out between $900 and $1,000 each year for textbooks and supplies, according to the College Board’s latest Trends in College Pricing report, schools, states, and now Congress are getting involved in the crusade to control the spiraling costs of college textbooks.

Propelled by studies that show the prices of textbooks are rising faster than the rate of inflation, the House of Representatives included provisions in the recently approved College Opportunity and Affordability Act that are specifically targeted at making textbook costs more manageable, reports Elia Powers of Inside Higher Ed (“Different Tacks on Textbook Choice,” Feb. 19, 2008).

The House bill (H.R. 4137), which passed the House on February 7 and renews the Higher Education Act, would have colleges provide advance information in their course schedules about required books to give students time to plan for expenses and comparison-shop for the most cost-effective options.

Also approved by the House was an amendment (H.AMDT.951) proposed by Rep. Tim Ryan of Ohio that would create a pilot competitive grant program to assist a select number of colleges in setting up textbook rental programs.

States Enacting Their Own Textbook Legislation

H.R. 4137 would also require textbook publishers to provide more information about pricing and changes from previous editions, which follows bills already passed by some state legislatures, writes Powers.

Last April, for example, Washington state House Bill 2300 was signed into law, requiring textbook publishers to disclose retail prices and a history of revisions from edition to edition when presenting any materials to faculty.

In June, Oregon passed its similar Senate Bill 365 into law. In addition to charging publishers with providing retail prices and a list of all previous versions of a text to potential adopters, the Oregon measure requires publishers of textbook “bundles” (textbooks packaged with an accompanying CD-ROM or study guide, for instance) to make each component of the bundle available to students separately and to disclose the retail price of each piece.

In California, Assembly Bill 1548, known as the College Textbook Transparency Act, likewise calls for publishers to provide a list of revisions made to new editions, as well as for college bookstores to release the wholesale prices of textbooks. The California bill was signed by Gov. Arnold Schwarzenegger in October and goes into effect in 2010.

Changes at the College Level

In response to the increasingly vocal concerns of students, families, and legislators, not all schools are waiting on Congress or state officials to adopt changes to textbook pricing and marketing practices. Some schools, writes Powers, have already instituted book rental, buyback, or other programs in a move to extend textbook affordability.

At Rio Salado College in Arizona, for example, a partnership with Pearson Custom Publishing allows professors to “build” custom textbooks, drawing material from multiple sources. Administrators believe this program could save students up to 50 percent on reading materials.

The University of Virginia, in addition to expanding its textbook rental and guaranteed buyback programs, is increasing its selection of e-books, which can save students as much as 30 percent over print versions of new editions. And a growing number of U.Va. professors are choosing to purchase older editions of books in cases where the new material isn’t a necessity, a move the university says cuts an average of 75 percent off new book prices.

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Minnesota College Students May Miss Out on Pell Grant Increase

Congress Joins States and Colleges in Efforts to Reduce Soaring Textbook Costs