ATLANTA — An additional 8,722 students in Georgia would receive Pell grants if excessive lender subsidies are cut, according to a new report released by the Campaign for America’s Future. The report shows that this simple change would provide an average Pell grant of $3,010 to about 181,580 students across the state.
With the average cost of tuition at a public college in Georgia increasing by 19 percent between 2000 and 2007 and up 6 percent in the last year alone, President Obama’s budget calls for a cut in lender subsidies to make the financial aid system more efficient.
Campaign for America’s Future co-director Robert Borosage said the president’s budget proposals would make major changes to the federal financial aid system so more families can pay for college.
“Family incomes and college grants haven’t kept pace with soaring tuition costs,” said Borosage. “No student should be priced out of the college they need to succeed in the modern economy. With more and more high school graduates putting off higher education because they can’t afford it, the president’s budget would help provide the change students and families need.”
The college affordability proposals in the president’s budget would increase and expand Pell grants and Perkins loans, make the American Opportunity Tax Credit permanent, broaden the U.S. Department of Education Direct Loan program, phase out bank loan subsidies and create state and federal partnerships to help students complete their college education.