The Government Accountability Office released a report last week which revealed that 81,000 students will lose their eligibility to receive financial aid in the form of Pell Grants.
The GAO, an investigative branch of Congress, created the report to analyze the effects of a decision made by the U.S. Department of Education to change the student-aid eligibility formula by using more up-to-date tax information.
"One of the things that could happen with a change in the formula is that a family's need may be less rather than greater -- according to the formula -- when their situation hasn't actually changed," Robin White, AccessU.Va. Project Manager said. "Which means it is possible that the government considers them to have more disposable income available for their child's education than what they do have available."
Director of Student Financial Services Yvonne Hubbard said the formula change could increase the amount of tuition a family is expected to be able to pay, causing many students to become ineligible for Pell Grants. Others could remain eligible but see a decrease in the amount of aid for which they qualify.
According to the GAO report, the change in the financial aid formula will cause families to pay an additional $440 on average out of their own pockets. Nationally, 35 percent of students will see a decrease of about $130 in the amount of money received from Pell Grants. This decrease, coupled with the newly ineligible grant recipicients, is expected to cut national government spending on Pell Grants by $250 million. In the Commonwealth, it is expected that 49 percent of Pell Grant recipients will see their grants decrease by an average of $163.
Because the University will use the same federal financial aid calculation, Hubbard said there are some University students who will no longer qualify for their Pell Grants.
"We have done the calculations, and we don't anticipate that it will cause our students not to come back to U.Va. or not to be able to continue," Hubbard said.
Hubbard also said the Financial Aid Office will be sensitive to the new financial situations of University families, and the resources of AccessU.Va. will make it easier for students to handle the change.
White said AccessU.Va. will continue to meet 100 percent of a family's demonstrated need, and if a family's expected family contribution increases, there are other resources available to help the family cope, such as financial counseling. White also said AccessU.Va. can offer a second layer of protection for students, as it has the ability to cap need-based loans should a family require them to cover changes in its financial eligibility.
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