'Lighter' tax burden means smaller Pell Grants
BY CYnthia Lee
UCLA Today Staff
UCLA students who receive federal Pell Grants may get less next
fall or be dropped from the eligibility roll altogether because
of recent changes made by the U.S. Department of Education to state
tax tables.
UC estimates that about half of its 46,000 Pell recipients will
see their grants reduced an average of $100, and about 500 students
will lose their minimum $400 awards entirely.
The tax tables were updated last month over concerns voiced by
UC President Robert C. Dynes and California Com munity Colleges
Chancellor Mark Drummond that the changes showing many families
are paying less in state and local income taxes — and thus
have more income available to pay for their children's education
— were based on erroneous data.
In fact, state educators pointed out that data from the California
State Franchise Tax Board show that Californians' tax burden has
grown, not shrunk as the new tax tables presume. They asked that
publication of the new tables be delayed until the discrepancy was
resolved, but the department proceeded with the update, replacing
data that was more than a decade old.
As a result, UC officials estimate that students will lose $2.4
million. Last year, UC campuses received national acclaim for enrolling
a higher percentage of Pell Grant recipients than any other top
ranked public or private university, and UCLA led the nation for
having the largest proportion of undergraduates receiving these
grants.
"We anticipate that approximately 166 students will lose their
Pell eligibility," said Ronald Johnson, UCLA's director of
financial aid. Other students, primarily from families earning $35,000
to $40,000 a year, will likely see a small reduction in their grants.
Educators said there is hope that the new tax tables may be adjusted
when the Higher Education Act comes before Congress for reauthorization.
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