Pell Grant Fund Is Underfunded by $18 Billion Dollars
The Pell Grant is the financial foundation upon which many students go to college. The scary news is there is an $18 billion dollar shortfall in the fund this year.The Pell Grant is the great equalizer when it comes to higher education. It provides funding for lower and middle class kids of families making less than $40,000 a year to go to college. The program has been in existence for decades and helped millions better themselves. Indeed, a full six million students took advantage of the program in 2008 alone.
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We'll start with our esteemed elected representatives. Congress decided to issue laws making the Pell Grant fund available to a broader range of potential students. It also increased the amount of funding each student could receive. The problem, however, is Congress failed to also legislate how these increased distributions would be paid for. In short, Congress once again spent money it didn't have. Now the fund is estimated to face a future shortfall of $30 billion dollars a year. Only Congress will be able to fix this one.
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Things have been made worse by the economic situation in the country. The story is the same time and again when it comes to tough economic times. Despite what you might assume, college enrollments go up during tough times as stagnant job markets motivate people to seek out higher education and delay the job seeking process. Practically speaking, this means more students are taking advantage of the Pell Grant, which has also raised expenditures.
Can you still get a Pell Grant to help with the cost of your education? Yes. Just make sure you apply early because there is no telling how Congress might mess this one up when it tries to fix it.
