The Bush Administration is warning that the economic battering consumers are taking today will likely increase the need for the federal government to expand the funding of its popular Pell Grant program to keep pace with anticipated demand.

Last week, The New York Times published excerpts of a memorandum from Thomas P. Skelly, the Department of Education’s Director of Budget Service, who warned that the country’s current economic climate is stoking demand for Pell Grants which is currently funded to the tune of $14.2 billion annually. Skelly noted that as of July 31, 2008, 800,000 more students had applied for grants than last year, from a program that currently assists six million low-income college students.

Director Skelly has said that funding should be increased to $20.1 billion for the 2009 fiscal year, which would represent an increase of 40% over the previous year. Grants are disbursed to eligible students in amounts ranging from $431 to $4731 with increase in the maximum granted likely.

Applying For A Federal Pell Grant

Before students can apply for a Federal Pell Grant, families must fill out a FAFSA or Free Application for Federal Student Aid form which the federal government will use to determine grant eligibility. The deadline for applying for the upcoming academic year (which begins with the Fall semester) is June 30th. The FAFSA determines what is known as an EFC – Expected Family Contribution – the amount of money that each family must come up with to pay for their student’s schooling.

There are several factors brought into consideration when applying for a Pell grant including: tuition, room and board, books, supplies, and related expenses. Moreover, class load – which is the number of credits carried – is another factor which helps determine eligibility.

Part time students are eligible to receive Pell Grant money, but the amount of money they’ll receive is lower. Each factor is weighed against the family’s EFC to determine whether a grant will be awarded and for how much.

Tags: college grant, Department of Education, Pell grant, student aid

The state of Minnesota is offering a unique program for high school students: free college credits are being given to those who take (and pass) certain state-approved tests. Unfortunately, the response from high school students has been disappointing as the program is being underutilized. With more than $5 million earmarked by the state through 2009 to cover the tests, only $43,000 has been spent so far.

Save Thousands On Tuition Costs 

Minnesota’s “Get Ready, Get Credit” program is unique in that it is the only state to pay the test fees to help students get college credit. Although still responsible for administrative fees of $15 to $25 per test, Minnesotans are passing up the opportunity to receive free college credit and the opportunity to save thousands of dollars in tuition costs.

Lack of Publicity Hurts

Part of the problem with the program is that it hasn’t been receiving the publicity necessary to catch the attention of students. Some are saying that the college-level exam program is being passed by in favor of more popular choices for college credit, including Advanced Placement and International Baccalaureate. Additionally, many guidance counselors and teachers just aren’t that familiar with the state-paid exams. As a result, the state is planning to publicize the program and is hoping more students take the tests this Spring.

Students May Take Up To Six Exams

Students are allowed to take as many as six of the tests which include Algebra, Spanish, and U.S. History. Credits are accepted by member schools of the Minnesota State Colleges and Universities system however the University of Minnesota — Twin Cities is only accepting a handful of the 34 exams that students may take, as their admittance requirements are stricter than the state system.

For more information about Minnesota’s CLEP program, please visit the state’s Department of Education for details. Please visit the following links for aid charts and planning tools to help you prepare for college.

Source: Department of Education, State of Minnesota

Tags: CLEP, college aid charts, college credit, college planning tools, Department of Education, Minnesota, University of Minnesota