As many as 2,000 UW-Madison students could see a reduction in financial aid from Pell Grants due to a proposed government revision of the formula that determines the amount of money students can receive, according to Steve Van Ess, director of UW-Madison student financial services.
In December, the U.S. Department of Education suggested a change in the formula that determines eligibility for Pell Grants, which are the largest need-based financial aid grants in existence.
Presently, the government determines eligibility by weighing a family's income against certain allowances and arriving at a family's Estimated Family Contribution. In short, income minus allowances equals EFC. Students whose families' EFCs fall below a certain level are eligible for Pell Grants, which can potentially assist students in paying for up to 60 percent of yearly attendance costs.
The proposal seeks to reduce the number of allowances for state and other taxes, thus increasing some families' EFCs and reducing the amount of aid a student can potentially receive, according to Van Ess.
\[The government does not] have to do it; they're choosing to do it,"" Van Ess said.
Van Ess said while he does not disagree with the government's updating of the formula, he does disagree with the fact that they have not been consistent in updating regularly.
""Their defense has been 'hey, we're supposed to update these tables on a regular basis,' but they haven't updated the thing for 10 or 11 years,"" he said.
Van Ess also criticized the use of the money that would potentially be saved by altering the aforementioned formula. He projected the money may be used to cover deficit spending within the program.
""They're not talking about taking that money and turning around and giving other students the money,"" he said. ""They're talking about students just [getting] less money.""
Van Ess estimated 2,000 of the 3,745 UW-Madison students receiving Pell Grants would see a reduction of between $200 and $300. He did note the neediest students would see little or no change to the amount of aid they receive.
The proposal has upset both Gov. Doyle and members of the PK-16 Leadership Council, which is comprised of Wisconsin's most prominent educational figures, including UW System President Kevin Reilly.
In a PK-16 Leadership Council statement, the members of the council called on the Wisconsin Congressional delegation to reverse the potentially ""devastating"" plan to reduce Pell Grant funding. Doyle called the proposal ""more unwelcome news for Wisconsin families and students"" in a statement.
""I urge the Bush administration to reconsider this decision so that families in Wisconsin and across the country can continue to have full access to Pell Grants,"" Doyle's statement said.
