President Bush's proposed budget may disappoint students who rely on federal aid to finance their undergraduate educations. Bush's 2002 budget will not increase government help as dramatically as some education officials anticipated.
Bush's administration would increase Pell Grants, which are given to America's neediest college students, by $100 each, bringing them to $3,850 per year.
The administration's budget will not increase funding for other student aid programs, including Federal Work-Study, which grants money for student jobs, and Perkins Loans, which offer loans to students at a 5 percent fixed interest rate. The proposal also will not boost support for Supplemental Educational Opportunity Grants and Leveraging Assistance Programs.
University Financial Aid Director Yvonne Hubbard said Bush's proposal comes as a disappointment to students in need of financial aid.
Twenty-five percent of University students now receive need-based aid, and 1,200 of current undergraduates have received Pell Grants totaling $2.5 million, Hubbard said.
Because many students rely on government aid, the small proposed increase for Pell Grants and the lack of an increase of other programs may force more students to seek private loans to pay for a college education that would intensify the financial burden to students forced to pay off loans at high interest rates.
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"We have students graduating from the University who are $20,000 in debt," Hubbard said.
Because the University has a large endowment, it can compensate for the stagnant funding, so a student does not have to rely on government loans, she added.
The University is "blessed because we have grant money coming from our endowment," Hubbard said. However, "at many schools across the nation, the only money available [to needy students] are Pell Grants and government loans."
Other officials from around the nation shared Hubbard's disappointment.
"After listening to the president advocate leaving no child behind, it's extremely disappointing that his first budget does little to help the millions of students who rely on federal student aid to attend and complete the college of their choice," said David L. Warren, president of the National Association of Independent Colleges and Universities.
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