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NEA Statement of Principles on Federal Funding for Higher Education

(en Español)

October 20, 2003

"Perfect Storm" Batters College Affordability for Many Families

Bush Administration and Congress Worsen
Nationwide Crisis in Higher Ed

As Congress debates higher education funding and the latest data on rising tuition and fees at U.S. colleges and universities are released this week, millions of Americans are being hammered by a perfect storm of a stagnant economy, soaring college costs, and aid reductions due to federal and state cutbacks.

The economic downturn has left many young people and families with fewer resources to pay for a four-year college degree just as costs skyrocket and public and private assistance become more difficult for them to obtain. With almost all states struggling through the worst fiscal crisis since World War II, state universities and community colleges are receiving less and less help from policymakers. As a result, tuition and fees rose rapidly this year, with students at some institutions seeing hikes as high as 20, 30, or even 40 percent. At the same time, many universities and private foundations are cutting back on scholarships to needy students, leading greater numbers of them to take out more and more loans, work full- or part-time jobs, postpone their education, or abandon their dreams altogether.

President Bush and Congress have made this crisis worse. With a maximum of just over $4,000 and an average value of $2,400, Pell Grants no longer provide nearly enough assistance to working families to pay for college costs. Yet the Bush administration is not proposing any increase in the maximum Pell Grant award but is revamping the Pell Grant funding formula so that 84,000 middle-class families are no longer eligible.

The Bush administration and Congress also doled out trillions of dollars in tax breaks over the past three years mostly to corporations and the wealthiest individuals, which siphoned billions of dollars out of state revenues available for higher education and other critical needs. Now they are pushing forward a $87 billion aid package for Iraq—at a time when the entire annual federal budget for education barely tops $50 billion-while freezing funding for higher education.

To lessen the impact of the funding crisis on students and their families and ensure that higher education remains a top priority, NEA proposes that the Bush administration and Congress take immediate actions, including:

  • Raising the Pell Grant maximum to restore its previous purchasing power and ensuring that all students and families who are currently eligible for assistance remain eligible;
  • Significantly increasing funding for other sources of federal assistance such as supplemental grants and work-study;
  • Providing additional direct fiscal relief to states and localities to pay for higher education and other critical needs;
  • Passing legislation that allows children of undocumented immigrants who reside in this country to gain in-state tuition at public colleges and universities.

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