COLLEGE, Pa. - Although the figures are in the billions nationwide, individual students will see only small increases in the federal financial aid flowing into their bank accounts next year.
President Clinton signed a measure Sept. 30 to increase federal financial aid to college students by $1.3 billion. With a total of $7.56 billion available next year, 900,000 more students will receive federal financial aid, according to the Department of Education.
"Those numbers are nationwide, but when you think about some 3,000 schools across the country, the exact amount of the pie that will come to Penn State students - it's not a huge amount," said Anna Griswold, assistant vice provost for student financial aid.
The University will know in November exactly how much more federal money will come its way.
One of the most substantial increases was for Pell Grants. The maximum amount a student can receive will increase by $230. About a third of the 14,000 students across the University who receive Pell Grants will get the full $2,700, Griswold said.
Griswold also said she was happy to hear the Federal Work-Study Program will receive more funding. Because the minimum wage rose Oct. 1 from $4.25 to $4.75, the University needs more money to pay the same number of students. The minimum wage will eventually reach $5.15 by September.
Despite those increases, Penn State will be able to add a few more students to the 2,700 already participating in the program university-wide, Griswold said.
These and other increases are good for students, such as senior Billie Cartwright, who are facing a tough financial year.
Although she has a Pell Grant and other financial aid, making ends meet means working three jobs. A fifth-year student, Cartwright was forced to take out a loan for the first time because the amount the GI Bill provides decreases after four years.
Grateful for the extra $230, Cartwright said she would rather see tuition go down than federal funding for financial aid increase.
For John Barton (junior-international business), any increase in federal aid is welcome because holding a job and going to school at the same time can be difficult."Last year, I worked 40 hours and carried 19 credits. It was really tough," he said.
"With more money, I'll be able to work less."
Although his Pell Grant and other financial aid covers his tuition, he said, books, rent and food are what have caused him to take out loans to get through college. The University estimates that it costs about $12,000 a year to attend Penn State. Barton said he spends $16,000 per year.
Although students such as Cartwright and Barton will benefit from the increase in the Pell Grant program, the 34,000 students University-wide who have Federal Stafford Loans will not see any increase, Griswold said. By graduation, the average Penn State student in the program has received $14,500 in loans, she said.
"The budget neither increased nor decreased the program," Griswold said, "but we are very pleased with the increased funding in the other major student-aid programs."