The U.S. Senate began Monday to address a 2005 budget proposal that looks to eliminate the multi-billion shortfall in the Pell Grant program.
The program, the largest need-based financial aid grant in existence, has faced multi-billion-dollar shortfalls for the last several years, said Steve Van Ess, director of the UW-Madison Office of Student Financial Services.
Van Ess said due to the need-based nature of the grant, the government cannot deny financial aid to any student who meets qualification. With a surge in demand for the grants in the last few years, the amount appropriated by Congress for the grants has not been enough.
Congressional support for the grant is widespread, despite its high cost.
\I am very concerned about our nation's deficit, but even in tough fiscal times, we need to invest in proven education programs that work,"" Sen. Herb Kohl, D-Wis., said in a statement.
David Wald, a spokesperson for Sen. Jon Corzine, D-N.J., added the issue is considered a key Senate priority because ""college education is a key priority.""
While Congress works to eliminate the deficit, the consequences of the debt continue to affect those who benefit from the program.
The maximum amount awarded through Pell Grants, usually increased yearly, has been frozen for the past two years and will remain so until Congress says otherwise.
""There not being an increase in [the maximum amount awarded] is not a positive thing,"" Van Ess said.
President Bush's budget plan for 2005 calls for $3.7 billion to be set aside to pay off the shortfall. However, there is currently no plan to increase the maximum amount students can receive per year.
The program was designed to provide needy students with up to 60 percent of their attendance costs. Currently, the maximum any student can receive through the program is $4,050 per year, which accounts for approximately 34 percent of the living costs at the average university and 29 percent at UW-Madison, Van Ess said.
""You'd like to have the grant go up every year to take into account the cost of living and tuition increases,"" Van Ess said.
For the 2003-04 school year, UW-Madison has approximately 3,700 students that are awarded the Pell Grant and are receiving a total of $8.9 million.
