A proposed federal budget for the 2012 fiscal year threatens to slash funding for Pell Grants, which provide financial aid for low-income students.
Pell Grants are federal grants sponsored by the U.S. Department of Education that typically are awarded to students of low-income families based on a financial need formula as determined through criteria submitted through the Free Application for Student Aid form.
The proposal, which was introduced last Tuesday by House Republicans, suggests reducing Pell Grants to their 2008 pre-stimulus level. Such a reduction would decrease the maximum grant reward by $845 per student. Although reductions seem unlikely during the remainder of the 2011 fiscal year, the 2012 budget proposal aims to cut an estimated $5.8 trillion in federal spending for the next 10 years.
Milton Adams, vice provost for academic programs at the University, said the reduction would force students to look to other sources of financial aid, "either from University financial aid, loans, work or other sources." Adams added that with less aid available, financial concerns could discourage some students from attending the University and other institutions of higher education.
For the 2010-11 academic year, 14 percent of University undergraduate students received Pell Grants, George Stovall director of Institutional Assessment and Studies, said in an email.
The University's AccessUVa program, which meets 100 percent of demonstrated need for all admitted undergraduate students, could help limit the effects of the budget proposal.
"Pell Grants are [but] one source of funding for students," Adams said. "The key across the U.S. is to make education available to anyone who is motivated and qualified and wants to study and learn at a university."
University spokesperson Carol Wood said a number of variables will affect the way the University handles the situation. "We are monitoring the situation closely ... but we won't be able make any final decisions on how the University will address the cuts - nor will we know the full impact of the cuts - until we know the size of the reductions," Wood said in an email.
Administrators are awaiting the ultimate decision from Capitol Hill, where educational spending is just one of many contentious issues in the federal budget restructuring.
"I think both sides are looking for ways to turn the federal budget for upcoming years," said Issac Wood, communications director of the Center for Politics and former Cavalier Daily opinion columnist. "Most of the discussion for budget 2012 will have to wait until they can iron out the details for this year's budget ... [but] parents and students would likely oppose a decrease in [Pell Grant] funding."
Regardless of what happens in Washington, Adams said the University must plan ahead.
The pending change is "not only a challenge for students, it's a challenge for the University to find out how to help students with their funding and what other sources the University needs to use," Adams said.
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