Daniel Barkowitz | August 07, 2006
"Don't Miss-Pell"
So right before my blog respite (is that a Blogspit?), I made an announcement about the new program MIT had undertaken to help students from high need / low income families (the MIT Pell Matching Grant program), but all I did was link to a press release about it. I didn't take any time to explain it.
Well, now I will!!
As you probably are aware, the Federal Pell Grant is the Federal Government's program for US Citizens and Permanent Residents which is designed to be a "floor" grant program for the neediest students (as measured by the Federal Government's formulas). This quasi-entitlement program, which began in 1972 as the Basic Educational Opportunity Grant, and which was renamed for Senator Claiborne Pell of Rhode Island in 1980, provides students who qualify with a starting grant to ease the cost of college and to make educational opportunity possible. The Pell Grant was designed to be a portable grant, meaning that the student could take the grant with them to any school they chose to attend, providing true access and choice.
But the Pell Grant has not stood the test of time. While the program has been authorized and funded every year since its creation in 1972, the maximum Pell is actually worth less now (adjusted for tuition inflation) than it was in 1973 (see this chart for the figures).
So, we at MIT decided to do something about it. Under the direction and leadership of our new President, Susan Hockfield, we created the Pell Matching Grant, a program designed to give the Pell greater impact for students who need it the most. Under this program, which begins this year and is effective for all undergraduate students, qualifying Pell recipients will see their Pell Grant matched, dollar for dollar, by MIT in the form of an additional scholarship.
Since we meet full need, what does this mean? Students who receive a Pell Grant will have their Self Help levels effectively reduced by this amount, requiring them to work or borrow for less than the standard $5500 per year level. In fact, a Pell Grant recipient who receives the maximum $4050 Pell Grant could work for the remaining $1450 of Self Help each year and wind up leaving the institute with no student borrowing at all (see the FAQ or the Press Release for more information on the program).
So what are we doing for the rest of you who don't qualify for a Pell Grant? Stick around, because I'll be updating you on another initiative which is sure to be rewarding...
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The author has filed this entry in the "Financial Aid" section; check it out for further reading on this topic. |
Responses To This Entry:
(Please note that comments are closed after 30 days to reduce spam.)
I had a question about outside scholarships. When do all the payments have to be in, because many of my scholarships require the "verification of registration" form. This would mean that the scholarships won't make it until about mid-September. From talking to some students at MIT, I understand that some people get refund checks , as they met all their financial need already with outside scholarships. Can you explain how that process works?
Posted by: Vu on August 8, 2006 02:13 PM
If we receive scholarship money from MIT, can we use that on buying essentials such as laptops? Also, can we use some of the aid towards joining a sorority/fraternity?
Posted by: Wendy on August 9, 2006 12:26 PM
Can I just say I'm really glad today that, Pell grants aside, Bush & co. backed off destroying most federal student financial aid?
Alternately: I like the blog, it's a good resource!
Posted by: Sam Jackson on August 11, 2006 01:17 AM
Yes, I have the same problem Vu does. At least one of my two scholarships won't be able to get the money to me until 2nd term. How will this affect my self-help for the 1st?
Posted by: Daniel Whitlow on August 13, 2006 06:09 AM
WOW! Lots of posts to comment back on! YAY!
First, Sam, thanks for the visit, and I like your blog! I'll be visiting soon again! (How do I get a link back to mine???)
So, let me give some outside scholarship answers:
First to Wendy's question about applying Outside Scholarships toward the purchase of a computer... We can allow a one-time (during your academic career) purchase of a laptop as an educational expense, but we do require the actual receipt of purchase, and we would need to work with you to see if it can be covered by either student loans or your outside scholarships. As an example, we would not allow the outside scholarship to offset a laptop expense unless you had already replaced both your self-help and summer earnings expectation with outside awards. We also typically do not allow outside funding to provide costs for fraternity or sorority obligations (other than room and/or board charges, which are included as part of your student expense budget). The easiest answer here, Wendy, is call your financial aid counselor for a more detailed conversation about it!
As for the issue about payment of scholarships vs. the timing of bill payment, this is another long answer! First, we will defer payment of outside scholarships which you are expecting just as we defer other financial aid which is pending (that is to say until the 15th of September for Fall bills). Once students have registered for the Fall semester, we will start applying outside payments received by applying checks to students' accounts. If you have an outside scholarship check which will not be in by the 15th of September, I would advise being in touch with your student account counselor to see if s/he would be willing to extend the anticipated credit for your scholarship until the time that the payment is expected.
Any other questions? Maybe this should have been its own post...
Posted by: Daniel Barkowitz on August 13, 2006 06:45 PM
