Jon S. Corzine: “I join with Senator Kennedy and others today in introducing an urgent and critical piece of legislation, the Student…”

“I join with Senator Kennedy and others today in introducing an urgent and critical piece of legislation, the Student Fairness Act. This bill would provide rebates to the many college students who will be receiving a dramatic reduction in their Federal financial aid come the return of classes this September. Due to an obscure change made in December of 2004 to a complicated and little-known formula used by the Department of Education to determine Pell Grant eligibility and allotment, many students will see a surprising increase in their expected family contribution, EFC, and a decrease in their Pell Grants. We must act now to prevent these decreases in aid from pricing our students out of college, forcing them to postpone their education and put their career goals on hold. These changes to the tax tables, at the behest of the Administration, have the effect of cutting $300 million from the successful Pell grant program, upon which more than 5 million students nationwide rely. It is projected that, as a result of these cuts, 1.3 million students will see a reduction in their Pell grants and a projected 90,000 more will become ineligible entirely for Pell grant assistance. According to a survey performed by the New York Times, some students could lose up to $6,000 in financial aid and the average family will have to pay an extra $1,700 before clearing the eligibility bar.…”