Washington, D.C. - Legislation cosponsored by Representative Berman to repeal a rule that unfairly reduces Pell Grant scholarship aid for low-income college students who attend low-cost colleges and universities - including over 82,000 students in California - passed the U.S. House of Representatives this week.

 

Under current law, a provision called "tuition sensitivity" limits the amount of Pell Grant aid eligible students receive annually based on their tuition costs - keeping students who otherwise qualify for a maximum Pell Grant scholarship from receiving the full sum.  While the Pell Grant scholarship can cover a studentˇ¦s cost of attendance, which is the sum of tuition and fees as well as books, supplies, transportation, room and board and miscellaneous personal expenses, "tuition sensitivity" is based on a premise that tuition is the major educational expense facing students, and should therefore determine grant need.

 

In reality, for most students, these related education and living expenses often present the greatest financial barriers to attending college. At Californiaˇ¦s community colleges, where tuition was recently reduced, the tuition sensitivity rule hits students especially hard. The legislation approved in the House, the Pell Grant Equity Act (H.R. 990), would eliminate this provision and restore fairness to the Pell Grant award process - boosting need-based aid for students in the most financial need.

 

According to the Congressional Research Service, the Pell Grant Equity Act would benefit approximately 96,000 students nationwide in the 2007-2008 academic year, and would provide an average Pell Grant scholarship increase of $108 per student.  The bill will provide a one-year fix in order to offer affected students immediate relief; the Education and Labor Committee plans to make the fix permanent when it reauthorizes the Higher Education Act.

 

In California, 570,000 students received Pell Grant scholarships worth approximately $1.45 billion for the 2004-2005 academic year. Nationwide, more than 5 million undergraduate students received a Pell Grant scholarship in FY 2006 - of these recipients, more than 74 percent have incomes below $30,000.

 

For more information on the Pell Grant Equity Act, click here.}