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Minnesotans could lose Pell Grant boost that's part of the stimulus law
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The federal stimulus law includes a bump in Pell Grant dollars for low-income college students -- from a current maximum of $4,731 to $5,550 for 2010-11.
But that doesn't guarantee that Minnesota families will get an extra cent.
Most residents who qualify for Pell Grants also receive funds from the State Grant program. The two are tied together and have limits based on both.
So if the Pell grows, that just means that the state's portion declines. That is, unless the Legislature expands eligibility or changes the rules to increase awards. For example, it could raise the total limit or up the living-expense allowance or add another semester of eligibility.
"In the vast majority of the circumstances, we've also adjusted the state grant" when federal funding has increased, said Rep. Lyndon Carlson, DFL-Crystal.
But with a $5 billion-plus deficit, this year is not like other years, and some in education are worried that the program's $60 million surplus created by the increase in Pell will be nabbed for other things.
"It may be hard to hang onto it," said Sen. Claire Robling, R-Jordan, the Senate Higher Education Committee's ranking minority member.
She and Carlson said that if the $60 million is not used for the State Grant program, it should at least be kept in higher education -- perhaps to cushion cuts to the University of Minnesota and the Minnesota State Colleges and Universities system.
The Office of Higher Education, which runs the State Grant program, points out that "Congress intended need-based aid to go up," said spokeswoman Barb Schlaefer, "and if we did nothing, that would change its intent."
About 80,000 Pell Grant recipients attended Minnesota schools in 2007. Of those, about 50,000 students receive a Pell and a State Grant. The roughly 25,000 who just receive Pell Grants are guaranteed to see the estimated average raise of $500 in their award.
Jenna Ross • 612-673-7168
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