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HIGHER EDUCATION
IN THE FEDERAL BUDGET
President Bush’s FY2002 Budget Plan for higher education proposes a $1 billion increase in Pell Grant appropriations (an 11.4% increase from FY2001). This would raise the maximum award by $100 to $3,850. The President’s budget plan does not include adequate funding for other important student-aid programs such as Supplemental Educational Opportunity Grants (SEOG), the Leveraging Educational Assistance Partnership (LEAP), Perkins Loans, and College Work-Study. President Bush’s FY 2002 plan does not increase funding for the Childcare Access Means Parents in School (CCAMPIS) program to meet the 1998 Higher Education Act mandated level, which prevents additional colleges and universities from expanding childcare services on their campuses.
| Appropriations for Federal Higher Education Programs (in millions) | |
PROGRAM |
FY1999 |
FY2000 |
FY2001 |
FY2002 (requested) |
|
Pell Grants |
$7,704.0 |
$7,639.7 |
$8,756.0 |
$9,756.0 |
|
Maximum Award
|
(3,125) |
(3,300) |
(3,750) |
(3,850) |
|
Supplemental Grants (SEOG) |
619.0 |
631.0 |
691.0 |
691.0 |
|
LEAP |
25.0 |
40.0 |
55.0 |
55.0 |
|
Perkins Loans |
130.0 |
130.0 |
160.0 |
160.0 |
|
Federal Work-Study |
870.0 |
934.0 |
1,011.0 |
1,011.0 |
|
Child Care Access Means Parents In School (CCAMPIS)
|
5.0 |
5.0 |
25.0 |
25.0 |
|
What should be done?
The maximum Pell Grant should be increased by $600, to $4,350. Pell Grants provide basic college assistance to financially disadvantaged students. The grants are the foundation of low-income students’ aid packages.
Supplemental Educational Opportunity Grant (SEOG) funding should be increased by $100 million, to $791 million. The SEOG program provides additional grant assistance to Pell Grant recipients based on need. SEOG expands college options for the poorest students.
Leveraging Educational Assistance Partnerships (LEAP) should be increased by $45 million, to $100 million. The LEAP program encourages states to continue to expand their own grant programs. States must match each dollar LEAP dollar two-to-one. New York uses LEAP funds to support increased grant aid, early intervention, community service, and scholarship programs in specialized academic areas.
Perkins Loans should be increased by $70 million, to $230 million. The Perkins program provides low-interest loans to needy students, making them less reliant on more costly loan programs. In addition, these increases would help to fully reimburse colleges for loan forgiveness.
Federal Work-Study should be increased by $39 million, to $1.05 billion. The Federal Work-Study program provides students money to pay for college through jobs on campus, in the community, and in the private sector. This self-help program encourages 750,000 financially disadvantaged students to develop strong work habits and gain exposure to potential employment opportunities. Federal Work-Study funds must be matched by at least one-third, and institutions often exceed this level.
Funding for Childcare Access Means Parents in School (CCAMPIS) should b
e increased by $45 million. CCAMPIS provides funding for four-year grants
to colleges and universities to expand childcare opportunities on their cam
puses. In 1998, the Higher Education Act (HEA) authorized $45 million for
this program, but in its first year only $5 million was actually allocated
(allowing only 87 campuses to participate). Last year’s addition of $25
million will allow more campuses to participate, but will still not provide
for the HEA mandated level of $45 million (where approximately 750 centers
can participate).
For more information contact: Miriam
Kramer.
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