The purchasing power of Pell Grants has deteriorated so sharply that the maximum award of $3,000 would have to double to cover the same proportion of college tuition that it did 20 years ago, according to a report on student aid.
College officials and students have long complained that steady increases in tuition and fees over the last two decades have eroded the value of the Pell Grant. The report, released last week by the Education Resources Institute and the Institute for Higher Education Policy, confirms that trend.
The maximum Pell award in 1977 was $1,400, which covered 72 per cent of the price of a four-year public-college education, and 35 per cent at a four-year private college. The maximum grant in 1997, however, was $2,470, which covered 34 per cent of the cost at a four-year public college, and 13 per cent at a four-year private campus.
Since 1996-97, the last academic year included in the data, Congress and the Clinton Administration have spent relatively heavily on Pell Grants: The maximum award for 1999-2000 will be $3,125.
The study also found that:
* The erosion from 1977 to 1997 was less pronounced for the average Pell award. In 1977, the average Pell of $759 covered 39 per cent of the cost of attending a four-year public college, while the 1997 average of $1,577 covered 22 per cent. The average Pell covered 19 per cent of the cost of a private education in 1977, and 9 per cent in 1997.
* From 1977 to 1997, the average price of attending college increased by 304 per cent. Adjusting for inflation over that period, the average price for all sectors rose by 49 per cent, while median family income rose by 10 per cent.
* The proportion of undergraduate students with loans increased more rapidly from 1990 to 1996 than the proportion that received grants, although the latter group was larger. Those with loans rose from 19 per cent to 26 per cent, while those with grants increased from 36 per cent to 39 per cent.
Single copies of the report may be obtained free by calling (800) 255-8374, ext. 4762, or on the World-Wide Web (http://www.ihep.com).
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Section: Government & Politics
Page: A32