As President Barack Obama’s special congressional committee closes in on its Nov. 23 deadline to vote on a $1.5 trillion deficit-cutting proposal, financial aid for college students continues to be an area vulnerable to spending cuts.

Biola students lost approximately $620,000 in state financial aid this year, after state bill SB 70 was passed in March changing eligibility requirements for the Cal Grant program. And now the federal Pell Grant program, a critical source of need-based financial aid for more than a third of Biola’s undergraduate population, is facing possible reduction as Congress struggles to find funds.

Federal Pell Grant program currently unfunded

Approximately 1,400 Biola students receive some form of the Pell Grant, ranging from several hundred dollars up to the maximum award of $5,550, according to the Financial Aid Office. Biola director of financial aid Jonathan Choy said that even reducing the Pell Grant by $200 per student would have a significant negative impact that would add to the growing financial gap in higher education. Biola students have steadily demonstrated increasing levels of financial need in recent years, with the university’s Pell Grant funding more than doubling from $2.1 million in the 2006-2007 school year to $5.5 million in 2010.

“The urgency is there, we know that,” Choy said. “Year after year, it’s just going to get worse.”

$24.3 billion is needed to maintain the Pell Grant at its current levels, but Congress has yet to come up with a way to fund this program for the 2012-2013 school year. While the House and Senate have each put forward their own proposals, a compromise bill could be weeks, or months away, as Congress continues to debate over how to cut deficit-spending while also maintaining much-needed programs.

Financial aid legislation impacts neediest college students

“Everything’s on the table,” said financial aid counselor DJ Crawford regarding potential program cuts.

Crawford noted that education is an area that is always traditionally on the chopping block during budget debates, since students often lack a voice in the political sector.

“The people who are going to be hit the most are our neediest students,” Crawford said, explaining that the Pell Grant is determined based on expected family contribution, with the highest award given when a student’s EFC is $0. “[The Pell Grant] has been an important part of bringing people here, keeping them here, and sending them off as they graduate without being in insurmountable debt.”

State financial aid recently reduced

Pell Grant legislation follows a trend of recent changes in the financial aid landscape of higher education. California’s SB 70 now requires that students qualify for the Cal Grant program each year, rather than once upon their admission to college. Eligibility is determined based on a family’s combined income and assets, and if these are even $1 over the limit, students are disqualified from their award.

Senior journalism major Amy Ortega was one of the nearly 70 students who lost their Cal Grant this year.

“It was a complete mess, I was crying and freaking out,” Ortega said. “My parents can’t help me with school, they can barely help me pay for three books.”

A week before coming back to school, Ortega was informed that she would be receiving money from Biola’s Cal Grant Discretionary Fund. The university’s commitment of $440,000 to form this fund out of last year’s surplus revenue helped buffer students through the loss of their Cal Grant this semester, but was an emergency, one-time only commitment, according to Choy.

Cal Grant program still vital for Biola students

Preserving the Cal Grant has been on the top of Biola’s financial priority list for the past few years. Ortega was one of several Biola students who traveled to Sacramento last year with a delegation of students from private schools across California to share her story with legislators and thank them for the impact of the Cal Grant.

“To some, it’s just a bachelor’s degree, but it’s not just a bachelor’s to my family,” Ortega said, a first generation American who will be the first in her family to graduate college. “It’s a huge accomplishment because it doesn’t come that easy.”

Assistant director of undergraduate admissions Chanelle Markwalder, who coordinated Ortega’s trip, said Biola has been sending students to the capitol for the past 10 years in order to keep the topic of financial aid in front of legislators, and plans to continue to do so in the future.

“A lot of our students that get the Cal Grant wouldn’t be able to come if they didn’t have that,” Markwalder said, noting that financial aid is a deal-breaker across the board both for students considering Biola and those trying to complete their degrees here.

Students graduating with debt

Senior Christian ministries major Jessica Oh receives both a Cal Grant of around $9,700 and the highest possible Pell Grant award of $5,550. Oh said she wasn’t affected by the recent changes to Cal Grant eligibility, but noted that without her financial aid package, she wouldn’t be able to afford Biola. As it is, she is still overwhelmed by the amount of debt she will graduate with next semester.

“I feel obligated to pay off my loans before going into ministry,” Oh said. “But I’ll spend the first five years just paying off my education.”

Oh shared that she doesn’t feel free to fully pursue God’s calling into ministry because of her debt.

Cost of private education a long-term investment

The price of a private college education can be a tough decision, Crawford said, but ultimately it is a financial investment that should not be underestimated, either by students or by lawmakers. It is a misconception that financial aid such as the Pell Grant or Cal Grant is simply free money handed out to college students, Crawford said, as these students go on to get jobs and contribute back to society.

“If we don’t invest in our students, how are we going to create a tax base that is going to sustain our government?” Crawford asked. “We’re reeling economically right now, so we are only looking at one thing — cutting the budget — but that is simplistic and ultimately short sighted.”