Increased Pell Grant Level Could Hurt More than Help Students

(Vocus) April 9, 2010 -- Pres. Obama signed the new direct lending to colleges bill. This could lead to an increase in the amount of Pell Grant money for students. The maximum grant right now

is $5,350. Pres. Obama expects the maximum grant to rise to $5,975 by 2017. So that’s good? Right? Not necessarily. Pell increase can really be a dis-service to students, retention and graduation.

[AcademicMAPS president Dr. Neal Raisman says “The Pell increase may actually harm students. It is only good if colleges and universities do not take the increase in Pell as a basis for raising tuition and fees as they almost always do. And they always go well beyond the annual Pell increase. This hurts students badly and is very poor academic customer service.”

“Schools figure that if there is additional Pell funding available to students, they might as well just increase the costs of attending at least that amount since the whole thing will balance out. It won’t cost the students any more money if tuition goes up since Pell will cover it. This is wrong thinking.”

AcademicMAPS analysis indicates that $5,975 is a maximum Pell allowance. Just because Congress and the President authorize an increase of $200 a year in Pell does not mean that the full increase automatically goes to every Pell recipient.

The actual amount of Pell a person receives depends on the student’s Expected Family Contribution (EFC), the total Cost of Attendance (COA), and status (full-time, half-time, etc.). The EFC depends on a number of factors and not what the family actually has available to contribute but what the federal formula decides the family should be able to put into the cost of attending college based on the Free Application for Federal Student Aid (FAFSA). After filing a FAFSA, the student receives a Student Aid Report (SAR), or the institution receives an Institutional Student Information Record (ISIR), which notifies the student if he or she is eligible for a Federal Pell Grant and provides the student's EFC. The total Cost of Attendance (COA) is not just tuition but all costs determined appropriate and required to attend.

Scholarship America® Named “Slam Dunk Charity” and One of the “10 Best Charities Everyone’s Heard Of”

MINNEAPOLIS & ST. PAUL April 08, 2010--Scholarship America®, the nation’s leading nonprofit scholarship and educational support organization, has been listed by Charity Navigator as a “Slam Dunk Charity” and on its list of “10 of the Best Charities Everyone’s Heard Of.”

Charity Navigator characterizes “Slam Dunk Charities” as those that have earned a 4-star rating for both organizational efficiency and organizational capacity, and have a donor privacy policy in place—indicating commitment to both fiscal responsibility and protecting the personal information of their contributors. The “10 of the Best” list recognizes large, complex organizations that work throughout the country and the world.

According to Charity Navigator, charitable givers should feel confident that the organizations listed put their donations to good use. Scholarship America has been rated a 4-star charity by Charity Navigator for eight consecutive years.

“Scholarship America takes great pride in both effectively and efficiently achieving our mission to assure all students have access to education beyond high school,” said Mim Schreck, Interim President, Scholarship America. “We thank all of those who trust us with their charitable donations.”

Scholarship America® is a national education service organization that mobilizes support for students getting into and graduating from college. Since 1958, Scholarship America has awarded more than $2 billion in scholarship assistance to more than 1.7 million students through our three core programs: Dollars for Scholars®, Scholarship Management Services®, and Dreamkeepers Emergency Financial Assistance program. More information is available at www.scholarshipamerica.org