4
WEDNESDAY, JANUARY 12, 2005
New Pell formula reduces grants
BY ERIC JOHNSON
ASSISTANT STATE & NATIONAL EDITOR
Just two days before Christmas,
the federal Department of
Education unveiled a revised for
mula for calculating financial aid.
The new guidelines, updated for
the first time in more than a decade,
will eliminate Pell Grants for more
than 80,000 low-income students.
While the neediest participants in the
federal government’s largest scholar
ship program will remain unaffected,
as many as 1.3 million others will see
their awards reduced.
The education department pro
vides Pell Grants, which do not
have to be repaid, based on finan
cial need. During the 2003-04
academic year, more than 5 million
students received awards ranging
from S4OO to $4,050.
To determine eligibility, offi
cials rely on tax data to find the
amount of discretionary income
each student or family has avail
able to spend on college. In order
to estimate how much money fam
ilies can contribute on their own,
federal officials need to know how
much income is taken by state and
local taxes.
The old formula was based on
IRS tax tables from 1988, while the
updated version uses data pulled
from itemized income tax returns
filed in 2002.
“Federal law requires that the
Department of Education use the
most up-to-date information avail
Librarian to turn the page on time at UNC
BY JOSEPH R. SCHWARTZ
ASSISTANT UNIVERSITY EDITOR
Each day, UNC library officials
comb through intellectual texts
amassed over two centuries, but
they soon will lose one of their
most valuable resources.
Deputy University Librarian
Larry Alford will end his 30-year
tenure at UNC on Jan. 31 to become
the vice provost for libraries and
university librarian at Temple
University in Philadelphia.
Alford, whose salary as of
October 2004 was $124,000 a
year, began working at the library
in 1970 as a UNC sophomore and
jokes that he “never left college.”
Despite being passed over for
UNC’s top librarian post, Alford told
Temple officials that he wasn’t inter
Your remedy for the
MCAT
able,” said Alexa Marrero, press sec
retary for the House Committee on
Education and the Workforce. “By
using the best information, we’re
going to make sure the funding is
targeted where it’s most needed.”
Marrero said Congress and the
Bush administration were simply
carrying out a long-overdue revi
sion, but critics contend that the
new formula shortchanges students
and doesn’t give a true measure of
financial need.
“If it were really accurate, then it
would be the right thing to do even
if people lost some money,” said
Sandy Baum, a senior policy analyst
with the College Board. “But the
fact is that they’re not accurate.”
The new data seem to show a
decreased tax burden for most fam
ilies, which increases their expected
contribution and decreases eligibil
ity for aid. That’s the reason many
students currently receiving grants
will no longer be eligible, and oth
ers will face reduced awards.
Under the new guidelines, stu
dents receiving the maximum
amount of aid will not be affected,
but those with family incomes over
$ 15,000 could see reductions.
Baum contends that gather
ing information from itemized tax
returns provides a skewed picture
because higher-income families
tend to itemize more often than
those of lower income. The formula
also fails to take into account sales
taxes, and Baum fears the new num
ested in leaving UNC when they first
contacted him last summer.
But after some prodding, he
decided co consider the post seri
ously. After a yearlong, nationwide
search that was narrowed down
to four finalists, Alford accepted
Temple’s invitation.
“I was really impressed in the
vision that the (Temple) presi
dent and the provost have and the
resources that they’re willing to
commit,” he said.
With his new title in hand, Alford
is the focal point of that new vision.
He will be Temple’s first vice pro
vost for library affairs and the first
to oversee all 17 campus libraries.
Richard Englert, chairman of
the search committee, said Alford’s
qualities aligned perfectly with his
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bers already might be outdated.
“They’re from 2002, and many
state and local taxes have gone up
since 2002,” she said.
Janet Hansen, a senior policy
researcher at RAND Education,
said recent fiscal troubles in many
states might have rendered the
updated formula obsolete before it
even goes into effect.
“I think the concern is that
because of economic conditions,
a number of states raised taxes in
2003 and 2004,” she said. “If there
have been tax increases since the
data that the government is using,
then people would actually be pay
ing more tax than those calcula
tions are assuming.”
The decision to go ahead with
the new model for the 2005-06 aca
demic year is expected to trim S3OO
million from the projected increase
in the cost of the Pell program.
“The reason that they’re making
the change is that they want to save
some money,” Baum said.
Congressional Republicans are
quick to point out that the overall
number of grant recipients is project
ed to increase for the next academic
year, and the overall budget for the
program will continue to rise.
With more eligible students than
ever, the $12.5 billion program
already is facing a severe budget
shortfall, projected at about $4
billion for 2005.
“The goal, ultimately, is to
increase the maximum award for the
Deputy
Librarian
Larry Alford
will leave UNC
on Jan. 31 and
move to Temple
University.
expectations for the position.
“We wanted to go for someone
who came from an outstanding
research university,” he said. “We
also wanted someone who could
come in and look at the university
from a vantage point of the future.”
UNC Librarian Sarah Michalak
said those qualities will make
Alford tough to replace.
“He’s a very hard worker, and it’s
hard to imagine how you could just
News
Pell Grant program,” Marrero said.
The focus should be on helping
the neediest students, she added,
and that means raising the cur
rent cap of $4,050. “By continuing
to use outdated information and
wrongly adding hundreds of mil
lions of dollars to the shortfall, it’s
going to postpone any hope of an
increase in the maximum award.”
Democrats on the Education
and Workforce Committee contend
that the Bush administration is
responsible for creating the short
fall by consistently underestimat
ing the number of students eligible
for the grants.
“It seems to us that the Bush
administration does a really lousy
job of projecting this,” said Tom
Kiley, press secretary for Rep.
George Miller, D-Calif., the ranking
minority member on the commit
tee. “I think it’s fair to say that by
running a shortfall in this program
every year, it gives them political
cover to say the money isn’t there.”
Kiley said the updated formula
wouldn’t provide a good mea
sure of student needs, and he was
straightforward about the result of
the change.
“The bottom line is that making
this cut means students that pre
viously had this money and need
this money for college are going to
lose it.”,
Contact the State National
Editor at stntdesk@unc.edu.
choose one person to fill his shoes,”
she said, noting that officials will
likely create several new positions
in the wake of his departure.
Although Michalak stepped into
her position in September, she said
she had looked forward to work
ing with Alford, who is well-known
throughout the library community.
“I just think that he is just a
marvelous librarian,” she said. “The
number of people who know him
and admire him and love him that
I’ve encountered here ... just dem
onstrates that he’s made so many
great contributions.”
Alford was quick to note his
respect for and appreciation of
Michalak and all of his colleagues.
“(UNC) is such a great institu
tion. ... There are great students and
faculty here that I’ve really enjoyed
working with,” he said. “It’s been a
really wonderful experience being
here, and I will miss it.”
Contact the University Editor
at udesk@unc.edu.
S^SOjNSjQN3^
‘ Z REQuisTED^
For Chancellor’s Awards
For Excellence in Student Activities & Leadership
Nominations are encouraged from all faculty, staff and students
of the University Community
Senior Awards Primary Area of Achievement
Algernon Sydney Sullivan Award Humanitarian contribution (one male, one female)
Irene F. Lee Award Character, scholarship, leadership (female)
Walter S. Spearman Award Character, scholarship, leadership (male)
Frank Porter Graham Award Improving quality of life of the University community through
principles of equality, dignity, and peace
George Moses Horton Award Leadership, initiative, creativity in multicultural education
programs
E. Eugene Jackson Award Member of the graduating class whose leadership and selfless
dedication have strengthened the class pride and University
loyalty, enriching the lives of seniors, and made the most
significant contribution to the University
John Johnston Parker, Jr. Medal Student self-governance
J. Maryon Saunders Award Recognizes the greatest contribution to the preservation and
enhancement of the feeling of loyalty and goodwill
Ferebee Taylor Award Recognizes the principle of honor as one of the University’s most
hallowed ideals
Junior Awards Primary Area of Achievement
Jane Craige Gray Memorial Award Character, scholarship, leadership (female)
Ernest L. Mackie Award Character, scholarship, leadership (male)
Graduate/ Professional Award Primary Area of Achievement
Boka W. Hadzija Award Awarded to the graduate/ professional student who has been
judged most outstanding in character, scholarship and leadership
QJ.hcr Awards Primary Area of Achievement
Ernest H. Abemethy Prize Student publications
Cornelius O. Cathey Award Recognizes the greatest contribution to the quality of campus life
or the efficacy of University programs for students through
sustained, conservative participation in established programs,
or through creative, persistent effort in development of new
programs
Gladys and Albert Coates Award Given to a member of the Student Congress judged most
outstanding on a criteria of statesmanship, commitment and
constructive involvement in issues affecting the quality of
University community
Robert B. House Distinguished Service Award Unselfish commitment, through service to the University and to
the surrounding community
International Leadership Award The Class of 1938 Joseph F. Patterson, Jr. and Alice M. Patterson
International Leadership Award for international awareness and
understanding
Jim Tatum Memorial Award Athletics plus co-curricular activities
NOMINATIONS DUE: MONDAY, FEBRUARY 7, 2005
Nomination Forms Available Online at:
www.unc.edu/chancellorsawards
For further information contact, Kathy Sutton, 966-4045
Pell cuts won’t hurt
University students
Will cost SI7SK
to cover shortfall
BY ERIC JOHNSON
ASSISTANT STATE & NATIONAL EDITOR
About 1,500 UNC-Chapel Hill
students will see a reduction in
federal aid next year as a result of
recalculated Pell Grants, but the
University and the state should be
able to offset those losses.
That’s the finding of prelimi
nary calculations by Shirley Ort,
associate provost and director of
scholarships and student aid for
the University.
“It probably won’t be felt direct
ly by the students because we’re
expecting that through a combi
nation of state grants and some
private money, we should be able
to cover most of this,” she said.
Ort estimates that about 1,400
Chapel Hill students will lose SIOO
in Pell money, and another 90 stand
to lose S4OO. None of that, she said,
should translate into an increased
burden on those students because
the financial aid office should be
able to make up the difference.
“I’ve been doing this for 30-plus
years, and these things happen all the
time,” she said. “We try and manage
our resources so, if it’s an adjustment
on the margins, we can handle it.”
Ort said she maintains a reserve
of about $300,000 out of a total
budget of $lB3 million —and the
projected shortfall from the Pell
changes is estimated at $175,000
for UNC-CH.
Across the UNC system, the
impact of the Pell Grant change will
depend heavily on whether the state
can come up with extra funding.
Steve Brooks, executive director
of the state education assistance
authority, said that under the state’s
formula for distributing aid, stu
dents who apply early should not see
any overall reduction in funds, even
if their Pell Grants are reduced.
“The way the UNC need-based
grant is structured, it will make up
for that loss for students that apply
on time,” he said.
The trouble arises for students
who wait too long to submit aid
applications. Each year, the state
distributes aid money on a first
come, first-serve basis until it runs
out. By compensating for the lost
federal aid money, the state risks
running out of its own pool of
funds earlier than usual.
To keep that from happening,
Brooks wants the governor to
include a request for about $lO
latty (Ear Mwl
million extra in this year’s budget
proposal. While he acknowledged
that the budget will be tight,
Brooks said the governor and the
legislature have been supportive in
past years.
“They seem to be very sensitive
to the fact that it costs money to
go to school, and we want to make
sure people can do it,” he said.
Financial aid directors at a num
ber of system schools said they are
looking at ways to use their own
resources to help address a poten
tial shortfall for Pell recipients.
Most had not yet calculated how
many students would be affected.
“Asa school, we will try to fill the
need with our funds,” said Emily
Bliss, director of financial aid at
UNC-Wilmington. “It’s probably
going to be a minimal change to
our students.”
AtN.C. State University, officials
are projecting a loss of $700,000
in Pell fimds. Julia Mallette, direc
tor of scholarships and student
aid, said her office will be examin
ing ways to minimize the student
impact if the state funding doesn’t
come through.
“Certainly there are other
resources we can pull together to
cover the shortfall as best we can,”
she said.
Ort and Mallette both said they
understood the need to update the
formula, even if they aren’t terribly
pleased with the impact.
“I think it’s probably something
the federal government should have
been doing all along,” Mallette said.
“When you wait 10 years to make
the update, it’s a more significant
impact.”
While she doesn’t expect any
further funding disruptions in
the near future, Ort said she’d be
keeping “a careful eye on what the
White House and the Department
(of Education) are doing vis-a-vis
funding levels.”
“This is an era of tight money
in Washington, and domestic pro
grams are really going to be closely
scrutinized.”
Contact the State & National
Editor at stntdesk@unc.edu.
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P.O. Box 3257, Chapel Hill. NC 27515
Michelle Jarboe, Editor, 962-4086
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