[Oasfaa] Students May Be Shut Out of College

[Ron1BOk at aol.com]

I ran across this story and thought it was interesting......

-Ron

Students May Be Shut Out of College

By GREG TOPPO
.c The Associated Press

  
WASHINGTON (AP) - Low-income students who are otherwise qualified 
academically to get into college may soon be shut out of the hallowed halls 
anyway because of a financial aid system that favors middle class students, 
according to a panel authorized by Congress to oversee financial aid. 

The issue starts with a rising number of low-income students qualifying for 
college. 

``We've all heard about the baby boom, but now we have a baby boom echo, 
which rivals the baby boom in size,'' said Juliet V. Garcia, president of the 
University of Texas at Brownsville and a member of the Advisory Committee on 
Student Financial Assistance. 

Combine the boom with escalating costs, inadequate grants and a shift by 
colleges away from need-based aid programs that generally help students 
lacking financial resources, and the result could be a barrier keeping 
qualified students out of college, the committee said Wednesday. 

According to the report, many of the nation's poorest students kept pace with 
their peers in preparing for college. From 1987 to 1999, completion rates on 
college preparatory courses grew more than 20 percent for the poorest 
students, while middle class students' completion rates grew about 21 
percent. 

Given current demographic projections, by 2015, an ethnically and 
economically diverse group of students - 80 percent of them not white - will 
apply for college. 

More than 45 percent of minority students will be from families that can 
contribute only a minimum amount and must rely on generous financial aid. But 
since 1993, the report said, state-funded, merit-based financial aid 
programs, which favor middle-class students, have increased 336 percent in 
real dollars. Meanwhile, funding for need-based financial aid programs, which 
favor poorer students, has risen 88 percent. 

The report said rising college costs also are hitting poor families harder, 
with more of their income eaten up by college expenses. Last year, the cost 
of college as a percentage of real family income was 62 percent for 
low-income families, 16 percent for middle class families, and 7 percent for 
the wealthiest. 

Even after they get to college, the report said, low-income students end up 
footing a larger proportion of the bill than other students. After 
subtracting grants, loans and personal outlays, low-income students in a 
four-year public college typically face $3,800 in college-related debt. 
Middle class students typically face $2,250 in unmet need, while upper-income 
students face $400 in debt. 

At the same time, the report said, the maximum federal Pell grant has failed 
to keep pace with college costs. In 1975, a student could cover 84 percent of 
costs at a public four-year college with such grants. By last year, he or she 
could only cover 39 percent. As a result, many low-income students are forced 
to work full- or part-time, cut back on coursework or simply drop out. 

The committee said federal and state governments must shift to awarding 
financial aid more on the basis of need. 

Education Secretary Rod Paige on Tuesday said President Bush wants to 
increase the maximum Pell grant by more than 50 percent, to $5,100, for 
first-year students. Currently, the maximum is $3,300. 

Garcia applauded the proposal, saying the committee wants to go further - she 
urged Bush to double the maximum Pell grant to $6,600. 

Jeff Stoltman, who oversees financial aid at Wayne State University in 
Detroit, said doubling Pell grants is a strictly short-term solution. 

``It's a big Band-Aid, but it's a Band-Aid,'' he said. 

Stoltman said one recommendation of the report is right on target: Colleges, 
states and the federal government must work together to help keep low-income 
students afloat. 

On the Net: http://www.ed.gov/ACSFA 

AP-NY-02-21-01 1747EST

Copyright 2001 The Associated Press. The information contained in the AP news 
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