Pell Grants Are On The Rise

The Pell Grants are set to receive a much needed face lift in the coming years, but at what cost?
All undergraduate students first became eligible for the Pell Grant in 1976-77. The maximum allotment at that time was $1,400, which covered 70% of the cost of tuition. For the 2009-2010 academic year the maximum allotment has increased to $5,350, which covers about 30% of the cost of tuition.
President Obama’s current plan is to have the Pell Grant increase every year at inflation plus 1 percent, essentially putting the plan on autopilot, similar to Medicaid and Medicare.
My first thought was good! You’re giving all this money to Wall Street and Detroit, why not give some love to the students who are trying to pay for college. But then I began to think maybe it should be voted on each year. Lawmakers should have the flexibility to look at the needs in a given year and put it to a vote.
Don’t get me wrong, I want students to get all the money they can. In fact, we are giving away $100,000 in scholarship money this year over at scholarshippoint.com, I just want to make sure the process is the best one possible for all involved.