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Washington Partner Perspectives For March 13, 2007

Today’s questions are answered by John Dean, a Principal at the firm.

John specializes in representing clients with interests involving the Federal student assistance programs. Prior to joining a predecessor firm to Washington Partners, John served as assistant counsel to the Committee on Education and Labor of the U.S. House of Representatives. He is an attorney admitted to practice law in the District of Columbia and Virginia.

Today’s questions focus on pending proposals to increase the maximum Pell grant.

The Continuing Resolution signed by the President calls for a $4,310 maximum Pell grant for the coming academic year. This is a sizable increase. Why now?

Dean:
College cost has emerged as a potent political issue, that’s why. The need for an increase is nothing new.

Last year Republicans seemed to argue against increasing the maximum Pell and typically responded to questions regarding the issue by pointing out the significant growth in federal costs associated with the program. Why the change in heart on the issue of what the maximum should be?

Dean:
It’s not a total change in heart—after all, the SMART and Academic Competitiveness Grant programs were Republican initiatives. But the increase in the maximum Pell in the ’08 Bush Budget would seem to be something of a response to the Democrats. Some have also noted that there seems to be something of a pattern in Presidential administration’s proposing increases in student aid during their last two years. Finally, I would note that the increase in the maximum Pell is consistent with the Spellings Commission on the Future of Higher Education report.

Should students be concerned about how Congress will pay for the Pell maximum increase?

Dean:
In support of answering “no,” I would note that it’s hard to imagine Congress reducing the maximum Pell grant in a year or two for budgetary reasons. The probability will be that they will increase funding for the program without offsets if they determine there are no funding offsets—like student loan program cuts—to produce the funding. On the other hand, in support of being worried, students should know that Congress and the Bush administration appear to want to rob Peter to pay Paul—the budget cuts to the student loan program will have the impact of reducing borrower benefits some students would otherwise receive.

Congress and the President appear to be nearing a difficult decision on whether or not they support the FFEL program. If they decide to proceed with the Bush budget cuts, which are of course proposed in the context of the Pell increase, they will need to be ready to address possible problems with student loans that could result if FFEL is cut too much.

Mr. Dean may be e-mailed at jdean@wpllc.net or 202.289.3900.


Washington Partners, LLC is a full service government affairs and public relations consulting firm that has built a reputation for producing results. The partners - long-term insiders in education policy - came together in 2002 to form Washington Partners, LLC. The firm boasts a staff of strategic and innovative thinkers providing a wide array of services that are customized to meet clients' needs. By consistently exceeding client goals and expectations, the firm's client list continues to grow. The firm's website may be found at: www.wpllc.net.

"Partner Perspectives" is produced weekly by Higher Education Washington, Inc. and is available on both the Washington Partners, LLC website and under "Opinions and Interviews" in the HEWI Quad located at www.hewiquad.net. Opinions expressed in "Partner Perspectives" are those of the person interviewed and not those of Washington Partners, LLC, its clients, or of Higher Education Washington or the HEWI Quad.

"Partner Perspectives" may be reprinted upon request made to Higher Education Washington, Inc. or Washington Partners, LLC.