Harvard Unaffected By Grant Increase

The U.S. House of Representatives voted Tuesday to increase the maximum federal Pell Grants by $400 in an effort to help students afford higher education. On this campus, though, the University endowment will be the main beneficiary of this decision, financial aid officers said yesterday.

In order for Harvard students to receive Pell Grants, they must have a high enough level of need to also receive a Harvard grant. Since all students who are on aid theoretically have all their "demonstrated need" met, any extra money from Washington Harvard's funding should drop by a corresponding amount.

And so those students receiving Pell Grants will not receive any more total aid as a result of this increase--rather Harvard will cut back its own contributions by up to $400 to keep aid levels steady. The maximum grant level rose from $3,125 to $3,525.

According to students, though, Harvard should not reduce grant levels since any student receiving grant money has also accepted enough loans over four years to graduate with a hefty debt.

"Why would Harvard necessarily subtract $400?" said Theresa M. Robertson '99. "It should go to the students who need it."

Robertson, who has received Pell Grants for four years, said she has "no idea" how much debt she will have after graduating this June.

Robert S. Clagett, program director for family financial planning in the Financial Aid Office (FAO) acknowledged that Harvard students would not necessarily benefit from the grant increase.

"The net effect for Harvard students is zero," he said.

He added, though, that this federal action would benefit students more than past legislation, which instead increased the Stafford loan limit. If the government had increased students' Stafford loans--which are interest-free until six months after graduation--Harvard would still have decreased the need-based grants it offered.

The House resolution reversed a recent tendency to increase Stafford loans.

"Congress doing this is a very positive sign that they're worried about the level of student debt. It's different from what has frequently happened," Clagett said.

If the House had instead voted to increase Stafford loans, it would have actually increased some students' debt, according to Clagett.

"Harvard students are at least indirectly impacted by the decision because the alternative was to increase the loan limit," he said.

While a recent Office of Career Services survey indicated 95 percent of students said their debt load would have no effect on their post-graduation career plans, another survey by the FAO revealed 87 percent of students were unaware of the full amount of their impending debt.

In the next two weeks, seniors who have taken loans will be required to attend exit interviews and informational meetings at the FAO for information on managing their tuition debt.

Only 500 to 600 Harvard students currently receive Pell Grants. Ninety percent of the Pell Grant recipients come from families with incomes lower than $30,000 per year.

But for students at community and state colleges the grant increase will have a major effect. Unlike Harvard, these institutions often can not afford to meet a student's entire need.

"The advantage is for the thousands of students at the community colleges or state colleges that don't have their own internal school scholarships," Clagett said. "That increase can have a dramatic impact on their ability to attend that college."

The House passed the resolution with a resounding 397 to 13 vote. The Senate is expected to give their approval to the increase as well.

The debate did have a partisan spirit, despiteits almost unanimous passage by both parties.Democrats expressed concerns that the Republicanbill was intended to divert money that wouldotherwise have gone to President Clinton'seducational initiatives.

But Republicans complained that the President'splan, which aims to help school districts hire atleast 100,000 new teachers, would negativelyimpact the successful Pell Grant program.

Cambridge's representative Democrat Michael A.Capuano approved the resolution, along with mostof his party.

"He knew the cost of a college education issoaring and programs like the Pell Grant help cutthose costs," said Alison M. Mills, Capuano'spress secretary.

Rep. Howard P. McKeon (R-Calif.), the bill'sco-sponsor, stressed the superiority of grants toloans in helping students afford the university orcollege of their choice

The debate did have a partisan spirit, despiteits almost unanimous passage by both parties.Democrats expressed concerns that the Republicanbill was intended to divert money that wouldotherwise have gone to President Clinton'seducational initiatives.

But Republicans complained that the President'splan, which aims to help school districts hire atleast 100,000 new teachers, would negativelyimpact the successful Pell Grant program.

Cambridge's representative Democrat Michael A.Capuano approved the resolution, along with mostof his party.

"He knew the cost of a college education issoaring and programs like the Pell Grant help cutthose costs," said Alison M. Mills, Capuano'spress secretary.

Rep. Howard P. McKeon (R-Calif.), the bill'sco-sponsor, stressed the superiority of grants toloans in helping students afford the university orcollege of their choice