FOR IMMEDIATE RELEASE
Contact: Haley Chitty
Director of Communications
Washington, DC -- February 14, 2011 -- President Barack Obama issued a fiscal year (FY) 2012 budget today that seeks to preserve the maximum Pell Grant amount of $5,550. This would be accomplished through reductions and changes to other federal student aid programs. NASFAA President Justin Draeger issued the following statement:
"We commend the President for his continued commitment to the Pell Grant, the cornerstone of the federal student aid programs. It is regrettable that the Administration is proposing to maintain Pell by making cuts to other student aid programs that provide much needed funds to students. Eliminating subsidized Stafford loans for graduate students and two Pell Grants in an award year will undeniably have a negative impact on students, but maintaining funding for the Pell program, which could be facing a $20 billion shortfall in FY 2012, is our highest priority.
"We look forward to working with President Obama on his proposals to restructure the federal Perkins Loan program, create a federal student loan conversion program to help students successfully repay their student loans, and other changes designed to strengthen the student aid programs.
"Education spending - and federal student aid in particular - represents a small but vital portion of total federal spending. As lawmakers consider the President's budget, we encourage them to remember that federal student aid is a direct investment in the American people and helps bolster the competitiveness of our underserved populations. Cuts in education spending and college access initiatives condemn low-income, college qualified students to a lifetime of hardship."
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at 2,800 colleges, universities, and career schools across the country. Each year, financial aid professionals help more than 16 million students receive funding for post secondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
Publication Date: 2/14/2011