Update From Financial Aid
Dear Parents and Families:
In mid-March the Gonzaga Financial Aid Office submitted a letter to you describing the present state of federal financial aid, as well as the various plans being debated to equitably distribute these growingly limited resources. Much has happened in a month, and as the federal government approaches the end of their concurrent resolution to continue debate (this deadline being Friday the 8th at midnight), now is as critical time as ever to have your voice heard. Although a vote has not yet taken place, President Obama and Speaker Boehner are encouraging Congress to extend their concurrent resolution, once again, to keep debate ongoing. If Congress does not extend their concurrent resolution to continue debating this issue, nothing will be solved and the government as a whole will “shut down.” If the federal government were to “shut down” a succeeding domino effect would cause some mild confusion in the distribution of financial aid, not to mention the lack of a clear path being resolved for financial aid’s immediate future in the 2011-2012 academic year, and beyond.
Here is a synopsis of what has been proposed at the federal level:
Pell Grant (awarded to highest need students): Congressional House Budget Chairman Ryan has proposed a plan that would impact the Pell Grant significantly. Chairman Ryan has proposed to cut the Pell Grant program for 2012 to the levels it operated at in 2008. The current maximum Pell award is $5,500 per year; the 2008 maximum was $4,731. However, although this is a significant decrease as it is, the Pell Grant was only funded with a total of $19 billion in 2008; where as the cost of Pell Grants for 2012 was estimated to be $44 billion. It should also be noted that the amount of Pell recipients has increased dramatically over the last four years. Estimating a maximum Pell award under this plan is difficult, but under this plan the end result would ultimately decrease it dramatically.
Chairman Ryan also proposes linking the Pell grant to increases in tuition. An ally of Gonzaga, the Association of Jesuit Colleges and Universities, has studied this proposal significantly in the past and sees no benefits to moving forward with this philosophy. If such a plan were enacted there would be large discrepancies amongst schools and their awards. For example, in 2011 Gonzaga is proposing a tuition increase of 4.3% from 2010. The state schools in Washington are estimating a 15-20% increase from 2010 to 2011. Although tuition totals vary greatly between Gonzaga and these institutions, Gonzaga students would not receive an equitable benefit when compared to their Washington State University and University of Washington peers.
SEOG, Subsidized Stafford Loans, Perkins Loans, etc: Other financial aid opportunities currently are not in the limelight as much as the Pell Grant program is. However, this does not indicate that they are not being examined closely alongside many other issues in Chairman Ryan’s budget. As we hear more about these programs we will keep you informed.
If you are concerned about Chairman Ryan’s plan, have received the benefit of any of the aforementioned programs or know someone who has, please join us as staff, faculty, students, and the entire GU community in voicing your concern. Our colleagues with the Association of Jesuit Colleges and Universities have graciously been advocating for not just the 28 Jesuit universities across the United States, but for all financial aid recipients nationwide. We understand that there are many variables and layers to Chairman Ryan’s plan that address items well beyond education and financial aid, however education has remained the root of success for not only current students, but these Congressmen, and leaders worldwide. It’s imperative that we remain passionate about the educational outcome of Chairman Ryan’s bill. As peers in this discussion we’d like you to join us and the AJCU in attempting to be heard. Please write to your congressman at https://writerep.house.gov/writerep/welcome.shtml to join in the discussion.
Thank you,
The Gonzaga Financial Aid Office