Will a $260 Increase In Pell Money
Make a Difference?

Patrick Sutton 

As The White House warms to the $464 billion dollar spending bill that includes a $260 boost in Pell money, some House republicans still remain speculative. The loudest critics claim that the bill is being rushed to vote without adequate time to amend. But let’s not confuse the means with the ends: What will this change in higher education?

The Pell grant is a federal aid grant named after Claiborne Pell, that awards funding based on “financial need” that is determined by an application called Free Application for Federal Student Aid (FAFSA). Recipients that receive Pell money are typically “high need” students.

So what types of changes can we expect to see from a $260 increase in Pell Money—now that the grand total of available money is $4,310?

Not many.

Although it is a valiant effort to provide the economically underprivileged with a chance to attend school, a closer look at the historical efficacy of Pell funding yields more telling information: in the past 20 years, public education has become more expensive—so much so that a maximum Pell grant only covers 30% of a 4 year public education, whereas 20 years ago, it covered 60%.

Currently, the average yearly tuition cost of a 4 year public institution is around $6,000, but when living expenses and the costs of materials are factored in, the sum rises to around $13,000. The cost of public education typically rises around 5.9% a year.

When that number is compared to the average yearly rise in Pell funding, which has been frozen since 2003-2004, it becomes obvious that the efficacy of Pell money is eroding. Fortunately, students that need to look elsewhere funding benefit from a recent increase in the minimum wage.

The average student that receives the full Pell grant, will still need to come up with about $8,490 per year. At $7.25 an hour, this comes out to 1,171 hours of work per year, or 22.5 hours per week.

Aside from working, there are many other types of scholarships and opportunities for the economically under priveldged.

Putting harsh criticism aside, this is a step in the right direction. After all, if the cost of public education increases 5.6% ($672 if tuition and living expenses are considered), $260 dollars is something, but a lot more is needed.

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-Sources

Associated Press; Bush Ready to Sign Off on Spending Bill; The New York Times; 1-31-07

Jean Schemo, Diana; Accord on Increasing Pell Grants; The New York Times; 1-30-07

Kelley, Rob; Average College Cost Breaks $30,000; CNNMoney.com; 10-27-06