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Managing American: Education

TheWeekInCongress.com (TM)

Week Ending March 2, 2006

H.R.990 To provide all low-income students with the same opportunity to receive a Pell Grant by eliminating the tuition sensitivity provision in the Pell Grant program.

The Higher Education Act of 1965 governs, among other things, Pell Grants for students attending US colleges and universities. Section 401 of the law provides that a lowering of a student’s education costs such as a course-hour cost reduction will result in a reconfiguration in the total amount of the student’s grant. The law established cost levels that trigger a reconfiguration of the grant amount when met providing the original grant was at least $2,700.00. The provision has created problems when States reduce course hour costs resulting in a loss of grant funds to all the participating students but also provides different amounts of money to low income recipients if one enters a lower tuition college and the other a higher tuition college.

The bill would strike the relevant paragraph (3) of section 401, thereby completely removing any cost triggers effective in any academic year beginning on or after July 1, 2007.

Between 90 and 100,000 student would be affected by an estimated $108 per student.

Sponsor:  Rep. George Miller (D-CA-7^th)

Vote: Padded House by voice vote February 27, 2007

Cost to the taxpayers: Not discernible without data on the number of grants affected and the grant amount changes. Estimated cost would total around $10 million.

Earmark Certification:   Not applicable to this bill.

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