Hundreds of colleges charge low-income students tuition that is half or more of their household's entire yearly income, according to a report released today by the New America Foundation that seeks to shed light on colleges' aid practices and to prod Congress to change the structure of Pell Grants.
The purpose of Pell Grants, which help about 9 million low-income Americans attend college, is being undermined by many colleges that either are not admitting many Pell recipients or are doing little else to help needy students pay for college costs not covered by Pell, according to New America.
"Worse yet, there is compelling evidence to suggest that many schools are engaged in an elaborate shell game: using Pell Grants to supplant institutional aid they would have otherwise provided to financially needy students, and then shifting these funds to help recruit wealthier students," according to the report, which was written by Stephen Burd, a senior policy analyst at the Washington think tank. "This is one reason why even after historic increases in Pell Grant funding, low-income students continue to take on heavier debt loads than ever before."
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2014/09/17/think-tank-backs-changes-pell-pointing-out-tricks-colleges-play-merit-aid