New rule changes which take effect next fall, and are expected to save the government $300 million in the 2005-6 academic year, ensure that at least 1.3 million students receive
smaller Pell Grants and that 89,000 students who would be eligible for college Pell Grant money will get none.
The new rules are expected to have a "domino effect" across every type of financial aid, "tightening access to billions of dollars in state and institutional grants and, in turn, increasing the reliance on loans to pay for college." Education experts say, "the consequences for the nation's core financial aid programs are among the most substantial in a decade."
"This is the first time in at least 10 years where there's been a significant reduction for this magnitude of students."
The Bush administration first proposed altering financial aid rules last year but Congress "stopped the revisions from taking hold, arguing that tough economic times meant students needed more help to attend college, not less." This year the administration found support from Congressional leaders seeking to constrain the cost of Pell Grants, an expense that has steadily increased as more low-income students go to college.
For more on the consequences of large budget deficits and increased war spending, click
www.politicalthought.net.
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