Community College Journal - April/May 2010

community colleges and other institutions and created greater student financial need. Not only are more students applying for grants, but, of those who qualify, more are actually using them.

Because the Pell Grant program is funded largely through annual appropriations but operates as an eligibility-driven benefit program, a la Social Security, the burgeoning pool of Pell Grant recipients has left Congressional appropriators with a hefty and unanticipated tab. Congress did provide some $16.5 billion for this purpose as part of its recent student loan overhaul legislation.

Between 1986–87 and 2009–10, the maximum Pell Grant increased from $2,100 to $5,350 (see Figure 2). In terms of inflation-adjusted constant dollars, the award has increased $1,219, from $4,131 to $5,350.

Just enacted, the FY 2010 education budget reconciliation legislation ensures some continued increases in the maximum grant.

Figure 2.
Maximum Pell Grant Increases
(Not adjusted for inflation)

$6,000 Dollars

$5,350

$2,100

$0

1986–87 2009–10

Year
Source: College Board, “Trends in College
Pricing,” 2009.

Under the latest proposal, the Pell
Grant maximum would remain flat at

$5,550 for three years, and increase by the Consumer Price Index for each of the next five years. AACC supports this policy; the guaranteed annual increases would inject beneficial predictability into the program and help students and institutions plan.

AACC remains committed to maintaining the strongest level of political and public support for this essential federal program.

AMERIC

The article was supported in part by Lumina Foundation for Education. The views expressed in this publication are those of the authors and do not necessarily represent those of Lumina Foundation for Education, its officers, or employees.

DAVID BAIME is senior vice president for government relations and research at AACC. CHRISTOPHER MULLIN is AACC program director for policy analysis.

AMERICAN NATIONAL STANDARDS INSTITUTE

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