As state and federal politicians consider passing bills to cut financial aid, the number of applications for federal student aid has increased this year at Ohio University.
The Ohio College Opportunity and Pell grants, which award money to needy students, could both face cuts next fiscal year.
The Ohio College Opportunity Grant was cut from $1,008 to $888 per student last year, and Gov. John Kasich’s budget proposal would cut funding for the grant by $35 million to $41 million next fiscal year, according to state budget documents.
The future of the grant will be decided once the governor finalizes the budget June 30, according to the Ohio Board of Regents’ website. This school year, 3,315 OU students received these grants.
About 29,800 OU students have applied for some form of aid this year, only a slight increase from the same time last year, when about 29,500 applied. The number of applicants has increased by more than 10 percent in each of the last three years.
“It really doesn’t surprise me with the economy the way it is,” said Sondra Williams, director of student financial aid.
The Pell Grant, the largest federal grant program, also faces potential cuts.
Although a U.S. House bill in March sought to cut the $5,550 maximum Pell amount by $845 next year, current projections suggest that will not happen, Williams said. However, cuts to the maximum award amount are likely for the 2012-13 school year, she added.
U.S. President Barack Obama’s budget proposal includes eliminating summer Pell Grant coverage, according to the Congressional Budget Office. Such a change would save about $7 billion during the next 10 years, the office estimated.
Currently, students can receive up to two Pell Grants in a year — one during the school year and one during the summer, Williams said.
Money saved by cutting year-round Pell Grants would go toward maintaining the maximum award, according to the Congressional Budget Office. However, the federal government is expected to cut $66.4 billion in Pell funding from 2012 to 2021, according to a U.S. House bill.
So far this year, OU has awarded about $47 million in Pell Grants to about 12,900 students on all campuses, Williams said.
Last year, OU gave out more than $300 million in financial aid for all campuses, she said. This includes loans, grants, scholarships and work-study programs on the federal, state, university and private levels.
During the 2008-09 school year, OU disbursed about $260 million in aid, and the year before, the total was about $226 million. Numbers for this year cannot yet be calculated, Williams said.
Although distribution has increased as more students are applying for and qualifying for financial aid, tuition increases and cuts to grant programs have and will continue to take a toll on OU students, Williams said.
“Our money isn’t going quite as far.”
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