The recent tightening of eligibility for federal Pell Grants, set to take effect next academic year, will have little effect on Brown students, according to Director of Financial Aid Michael Bartini.
Changes in the eligibility formula for federal student aid, which were announced by the U.S. Education Department just before Christmas, will likely eliminate the Pell Grants of 89,000 students and reduce the award for another 1.3 million nationwide, according to an analysis by the American Council on Education.
However, if the 600 to 700 Brown students who receive Pell Grants see cuts, "most likely (the difference) would be picked up with more Brown money," Bartini said.
"In many ways at Brown it doesn't matter because we guarantee demonstrated need anyway," he said, adding, "For a Brown student the impact will be negligible."
Pell Grant awards range from $400 to $4,050 a year and are given to low-income undergraduates who qualify based on the federal formula for calculating financial need. The formula takes into account the applicant's state and local tax burden. In a spending bill passed last November that opened the way for the reductions, Congress allowed the state and local portion of the formula to be recalculated based on more current economic indicators.
In many states, such as New York, Massachusetts and Virginia, the estimated state tax burden declined, resulting in decreased or eliminated Pell Grants. In two states, Connecticut and Virginia, the estimated tax burden increased. The new formula will save the federal government $300 million next year, out of a total budget of $12.4 billion, according to the ACE's analysis.
Though there has not been a major study of the new rules' effect on the University's financial aid budget, Bartini said he did not anticipate a significant impact. He said any change will depend on the distribution of states from which students with Pell Grants come to Brown.
President Bush also announced in a speech two weeks ago that his budget would seek to increase the maximum Pell Grant award by $100 a year for the next five years, to $4,550.
However, newspaper reports noted Bush had pledged as a presidential candidate in 2000 to raise the maximum Pell award to $5,100, and that some Democrats were skeptical of Bush's proposal, calling it short on details. Bush said he would ask Congress to reform the student loan program "to make it more effective and efficient."
Bartini said President Bush's proposed increases were small and would not have much impact for Brown students.
