Investing in students

Monday, Sept. 22, 2008 | 2:06 a.m.

Financial institutions and the automobile industry aren’t the only ones standing in line for an infusion of cash from the federal government. Let’s not forget low-income students who have big dreams that can be fulfilled only if they have the opportunity to attend colleges or vocational schools.

The New York Times reported Thursday that federally funded Pell Grants, which help these students pursue their dreams at 5,400 institutions nationwide, face a $6 billion shortfall next year.

The sluggish economy, naturally, is largely to blame. Record numbers of students are turning to financial aid as their options continue to shrink. Many of them are adults who were laid off and have been forced to train for new careers.

At the same time, colleges nationwide have been raising tuitions. UNLV, for example, will have tuition increases of 5 percent in both 2009 and 2010.

This combination of rising tuition and increasing unemployment is making Pell Grants more critical than ever. Bear in mind that roughly 90 percent of the recipients come from families with incomes of $40,000 a year or less.

Although the grants come nowhere close to covering full tuition in many cases — they range from $431 to $4,731 this year — every little bit counts when you are trying to scrape together the resources to attend school. There is no doubt that Pell Grants are popular; they are received by more than 6 million individuals.

If Congress does not address the shortfall in the grant program, it will increase the perception many people already have that higher education is too expensive and therefore out of reach for all but the wealthiest Americans. Inaction in Washington would certainly lead to cuts in individual grants and force many recipients to drop out of school.

We must not forget that investing in college and vocational education is one of the wisest uses of federal funds. That is why every effort should be made to ensure that Pell Grant funding keeps pace with rising education costs and demands for assistance.