More Cuts Expected for Pell Grants

The Obama administration came under fire recently for proposed cuts to Pell grants, which the president made in the 2012 budget he offered to legislators last month.

Although Obama supported keeping the grant at its maximum throughout his presidency, recent changes in his budget aroused tensions and criticisms from both the left and the right.

According to The Chronicle of Higher Education, the Department of Education requested $28.6 billion for this year’s Pell grant program – a figure much lower than the $33 billion the department asked for last year.

In a congressional hearing on Tuesday, the department’s top postsecondary education official, Martha J. Kanter, explained that the number of Pell grant recipients increased during the past two years, and that if cuts were not made to it, a $20 billion shortfall could result.

The main cut to the grant would be the year-round provision, which lets recipients of the grant receive more than one per year. Kanter said that this would save $8 billion this year, enough to keep the grant at their maximum of $5,550, which she said would make sure that most students are protected from any cuts.

Both parties criticized the move for different reasons. While Republicans wanted to lower the maximum amount awarded to students, Democrats hoped to prevent cuts to the year-round provision.

Kanter explained that cutting the year-round provision was a more feasible solution because otherwise the maximum amount would have to be lowered, which would affect more students than a reduction of the year-round provision.

Rep. Dennis Rehberg from Montana questioned why an approval of Pell grant increases in 2009 had become permanent, as stimulus legislation was meant as a one-time deal. Kanter said that because of inflation, the grants had to be kept up to date. By returning to pre-2009 levels, Kanter said that the uncertainty and fluctuating amount of Pell grant money would negatively effect students.

The proposed Pell grant cuts by Obama come after the GOP-led House cut approved a budget that cut the maximum Pell grant to $4,705, $855 lower than the current number. Obama has said he will veto this budget.

For additional information on grants, visit our College Grants page.

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Tags: budget cuts, college budget cuts, college grants, federal pell grants, grants for college, pell grants