2008 Woodie Awards
Pell Grant recipients may not receive promised funds
Issue date: 10/9/08
With the financial crisis plaguing the nation's economy, an increasing number of college students are seeking financial aid from the federal government, causing Bush administration officials to warn Congress that $6 billion in additional taxpayer money is needed to fund the nation's most important federal aid program, the Pell Grant.
Created in 1972, the Pell Grant has long been the most important form of financial aid for millions of low-income students, whether they be recent high school graduates or older middle-class workers, who rely on these grants to afford higher education. According to Hopkins Student Financial Services, 534 students from the freshman class received Pell Grants, a 6.5 percent increase compared to the class of 2011.
"I think it is safe to say the increase in the number of Pell Grant recipients is a reflection of the worsening overall economy," Director of Student Financial Services Vincent Amoroso said.
Pell Grants are only available to the most need-based students. According to Ellen Koontz Ostendorf, associate director of student financial services at Hopkins, nine out of 10 recipients who receive the federal grant have family incomes of $40,000 or less. But due to the declining economy and increasing unemployment rate, the number of students seeking federal aid is rapidly growing.
Thomas Skelly, director of budget services, told lawmakers that both the number of recipients and the costs of tuition have significantly increased in the past two years. In fact, in a memorandum detailing the problem to lawmakers, Skelly wrote that more than 800,000 prospective students applied for federal grants compared to last year.
The memorandum indicated that in the first half of 2008, about nine million students nationally applied for financial aid; a 16 percent increase from last year.
The number of Hopkins students applying for aid also increased.
"We anticipate an increase in the number of students and families seeking some type of financial assistance from us whether it is in the form of loans, grants, work study or scholarships. The state of the economy has a direct impact on many families' ability to pay the associated cost of sending their son or daughter to college," Amoroso said.
Created in 1972, the Pell Grant has long been the most important form of financial aid for millions of low-income students, whether they be recent high school graduates or older middle-class workers, who rely on these grants to afford higher education. According to Hopkins Student Financial Services, 534 students from the freshman class received Pell Grants, a 6.5 percent increase compared to the class of 2011.
"I think it is safe to say the increase in the number of Pell Grant recipients is a reflection of the worsening overall economy," Director of Student Financial Services Vincent Amoroso said.
Pell Grants are only available to the most need-based students. According to Ellen Koontz Ostendorf, associate director of student financial services at Hopkins, nine out of 10 recipients who receive the federal grant have family incomes of $40,000 or less. But due to the declining economy and increasing unemployment rate, the number of students seeking federal aid is rapidly growing.
Thomas Skelly, director of budget services, told lawmakers that both the number of recipients and the costs of tuition have significantly increased in the past two years. In fact, in a memorandum detailing the problem to lawmakers, Skelly wrote that more than 800,000 prospective students applied for federal grants compared to last year.
The memorandum indicated that in the first half of 2008, about nine million students nationally applied for financial aid; a 16 percent increase from last year.
The number of Hopkins students applying for aid also increased.
"We anticipate an increase in the number of students and families seeking some type of financial assistance from us whether it is in the form of loans, grants, work study or scholarships. The state of the economy has a direct impact on many families' ability to pay the associated cost of sending their son or daughter to college," Amoroso said.
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