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NEWS
[ Tuesday, Feb. 20, 1990 ]
 
445 PSU students lose Pell Grants
Federal budget cuts force Pell Grant program to be slashed

Collegian Staff Writer

Four-hundred-forty-five University students will lose their Pell Grants in 1990-91 as a result of federal budget cuts. The Pell Grant program is the fourth financial-aid package to be cut in the past two weeks.

Robert Evans, University assistant vice president for student financial aid, said yesterday his office used a computer program to determine how many University students would lose their entire grants, but added the number of students who will receive a reduction in awards is unknown.

The U.S. Department of Education announced in its budget proposal for fiscal year 1991 that 14,000 students nationwide will lose their Pell Grants and 1.3 million students will have their grants reduced in 1990-91 as a result of federal budget cuts.

Every student who receives a grant of less than $250 will lose that award, Evans said, adding that students who receive awards from $250 to $2,100 will have their grants reduced between $4 and $155.

Budget cuts already have resulted in funding reductions of three other student aid programs. The cuts announced two weeks ago will cause 400 University students to lose part of their aid.

The Supplemental Educational Opportunity Grant, the College Work-Study Employment program and the Perkins Loan program all lost partial funding when Congress enacted the Omnibus Reconciliation Act. The act released some of the funds which has been frozen since October 1989, when Congress failed to settle on the appropriation funds for the 1990 fiscal year.

Eileen George (sophomore-exercise science) said she expects to receive a reduction in her award, but since the amount of her grant is high, she probably will not lose much.

"I'm not going to have to hunt around for another loan," George said. "(But) I was disappointed. Bush is supposed to be our 'education president' and he keeps cutting all our financial aid."

Evans said students who lose their awards will not be officially notified by the University, because if their incomes do not change, they will automatically be ineligible for the Pell Grant in 1990-91.

Pete Huston (freshman-foreign service) said he will not be affected by the reductions because he receives a $2,300 award a year, adding that his award is high because he is an Army veteran and is self-supporting.

Huston said he thought the problems in student aid rests in federal mismanagement of financial aid funds.

"I'm sure there are some people who need (aid) and don't get it, and there are some people who don't need it and get it," he said. "(But) there are plenty of ways to pay your way through school."

The Office of Financial Aid's policy does not allow financial aid coordinators, who are responsible for counseling students on student aid issues, to comment on the situation, Evans said.

 

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