Plan would increase student aid

President Bush's recent proposal to increase spending for federal student grants could help more students go to college. But some critics said the overall effects will not help the current situation of rising tuition costs since limits on individuals will not change.\nBush proposed an increase for Federal Pell Grant spending Feb. 3 of $10.8 billion -- from $1.9 billion to $12.7 billion -- for the next fiscal year. The Pell Grant is the primary form of need-based student aid from the federal government.\nNow more Pell-eligible students will receive the aid they deserve, said Ed St. John, a professor in the School of Education.\n"They are increasing the total amount because there was an increase in financial need out there," he said.\nBut St. John said there is still a $4,000 limit on the amount an individual can receive in Pell grants, yet a student is having to cover ever-increasing tuition costs. He said the aid amounts and tuition costs aren't balancing out.\n"When state revenues go down because of federal tax cuts, tuitions go up," he said. "The student is paying for the bad economy, and Pell won't adjust for that."\nSt. John said if the federal government raised the maximum amount a student could receive to around $4,800, then students would be better suited to handle the rising costs of higher education. The maximum award amount has risen $875 from 1999 to 2002, according to the U.S. Department of Education Web site.\n"They're underestimating the need for Pell," St. John said.\nThe Indiana Congress did pass an increase of $50 to the limit, but Nick Vesper, a policy analyst for the State Student Aid Commission of Indiana, said it's not going to offset the tuition increases for students.\nHe said the overall budget was increased, but most of it goes to administrative costs -- not directly to student aid. Vesper suggested federal officials raise the maximum about 15 to 20 percent.\nHe said state financial aid would not be affected if students received more money from the federal government. \n"Our grant aid is based only on tuition and fees," Vesper said. "We do not deduct the Pell grant from our consideration. Students can get a maximum from us and a maximum from Pell."\nPell Grants are awarded to undergraduate students based on a financial need calculation -- tuition and room and board costs of an institution minus the expected family contribution. Unlike student loans, these grants do not need to be repaid.\nVesper said the application process is pretty straightforward.\n"Where some students have a problem is the institution has a fixed amount of money they are trying to divide out," he said. "The trick is to get in the application materials as early as possible so you can be at the first of the line to receive money"