Three reasons why student aid is crucial to the economic stimulus package.
By Pedro de la Torre III
February 6, 2009
Feb. 9, 2009 UPDATE: Pell grants to remain in the American Recovery and Reinvestment Act. Unfortunately, other education priorities will probably be cut or nixed in the Senate’s version of the bill. Click here to learn more.
Last week, the American Recovery and Reinvestment Act (the “economic stimulus plan”) was passed by the House of Representatives, and is currently being considered by the Senate. The version of the bill that passed the House of Representatives included important policies that will help struggling students, mitigate the effects of state budget cuts to education, and help to stimulate the economy.
Unfortunately, conservatives are singling out education spending for criticism. Sen. Arlen Specter (R-PA), Rep. Boehner (R-OH), Sen. Ben Nelson (D-NE), and others want to either strip this legislation of Pell grant increases and other kinds of education spending.
The number one claim that they make is that student aid like the Pell Grant might be good, but doesn’t actually help get the economy moving. This is simply not the case – expanding student aid programs is a good idea for the American economy.
First, student aid and other forms of education spending dostimulate the economy. Pell grants are targeted based on financial need and the cost of attendance, so nearly all of the money will be spent relatively quickly on books, tuition, housing, etc., and begin circulating in the economy. Some of the tax cuts that conservatives have proposed may not be spent or invested as quickly as student aid, since many individuals or companies could choose to save the funds instead. Expanding access to education will also help our economy in the long run.
What kind of education provisions are included in the recovery and reinvestment package? And why is education important to economic stimulus? The Center for American Progress’s Raegen Miller answers these questions in the latest installment of CAP’s ASKTHEEXPERT series.
Second, students are already suffering due to the recession. State budget cuts have led to large tuition increases and, in some cases, enrollment caps for schools unable to sustain the cost of increasing student populations. Both scenarios make college less and less accessible to the lower- and middle-income young people.
Finally, critics of student aid in the stimulus truly do want to increase Pell Grants at some later, unspecified date, they should remember that it will probably be more difficult to increase student aid in the future. There would also be a short timeline for congressional action: increases to student aid should be passed in time for the fall ’09 semester. Congress has many competing priorities within this time frame, and there are no big debates on higher education expected any time soon.
Students need to speak out now to make sure that these pro-education policies are still in the bill when they get to President Obama’s desk. You can get involved taking action online.
Pedro de la Torre III is an advocacy senior associate at Campus Progress
This article was produced by the Campus Progress advocacy team.
I am trying to understand what the maximum Pell Grant for 2009-2010 will be. I keep reading that the 2009 act increases the maximum Pell Grant per student, but the maximum I see in the Act of $4,860 is less than the $6,000 maximum authorized by the Higher Education Opportunity Act passed in August 2008. What is the correct maximum Pell Grant for 2009-2010?
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I am trying to understand what the maximum Pell Grant for 2009-2010 will be. I keep reading that the 2009 act increases the maximum Pell Grant per student, but the maximum I see in the Act of $4,860 is less than the $6,000 maximum authorized by the Higher Education Opportunity Act passed in August 2008. What is the correct maximum Pell Grant for 2009-2010?
— Delia - Feb 17, 04:45 PM - #