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FOR IMMEDIATE RELEASE: January 26, 2005

SCHUMER BLASTS NEW FED PROPOSAL THAT WOULD STRIP THOUSANDS OF UPSTATE STUDENTS OF COLLEGE TUITION

New Schumer Study Shows Dramatic Effect on Upstate New York College Students

Schumer Unveils Plan to Prevent Change In Pell Grant Formula

Schumer Reveals Local Impact: In Western NY 6,500 Students Affected; 6,000 in Finger Lakes Region; 4,200 in Central NY; 4,200 in Capital Region; 5,700 in Greater Binghamton area; 2,200 in North Country; 9,200 in Hudson Valley

Thousands of college students in upstate New York could lose a significant source of tuition assistance if a new Administration plan is enacted, US Senator Charles E. Schumer warned today. Schumer also announced his support for bipartisan legislation that will ensure no students lose any aid due to the Administration’s changes to the Pell Grant formula.

“As tuition costs continue to soar, we must help working families – not make college even harder to afford,” Schumer said. “We need to make sure students have the resources they need to go to school and succeed. The federal government should do everything possible to make college more affordable for working families and I will fight tooth and nail to make sure that upstate students who need Pell Grants don’t have them taken away.”

According to recent reports, the Bush Administration is moving forward with its plan announced in December to change the way student aid under the Pell Grant program is calculated. According to the American Council of Education, the new calculations would disqualify 89,000 low-income students from the Pell Grant, an estimated 6,500 of whom are New Yorkers. An additional 1.3 million – including 95,000 in New York – would see a reduction in their student aid.

Federal Pell Grants are the government's largest form of financial aid to help low-income undergraduate students and certain post-baccalaureate students pay for their college education. The grant does not have to be repaid and can be used at approximately 6,000 participating institutions nationwide. Pell grants range from $400 to $4,050, depending on the student's financial need, their cost to attend school, and whether they are enrolled as part-time or full-time.

In December, the Department of Education announced plans to change the way students and their families calculate their expected family contribution, or EFC, for the 2005-2006 school year. The EFC is the amount that students and their families are expected to contribute from discretionary income towards college in a given year. A family’s EFC determines eligibility for Pell Grants and other forms of federal aid. Schumer said that while the President has also indicated plans to increase the maximum grant awarded, it does not justify the harm done to thousands of students by the calculation change made by the Department of Education and that the increased aid should be a supplement to the current grants.

To illustrate the potential harm that could come of the Administration’s changes, Schumer today released a report detailing the school-by-school on students at upstate New York colleges and universities. Specifically, Schumer’s study showed the following:

· In Western NY, an estimated 6,500 students could either be disqualified from receiving a Pell Grant or see a drop in their aid
· In Rochester/Fingerlakes, an estimated 6,000 students could either be disqualified from receiving a Pell Grant or see a drop in their aid
· In Central New York, an estimated 4,200 students would either be disqualified from receiving a Pell Grant or see a drop in their aid
· In the Capital Region, an estimated 4,200 students would either be disqualified from receiving a Pell Grant or see a drop in their aid
· In the Greater Binghamton area, an estimated 5,700 students would either be disqualified from receiving a Pell Grant or see a drop in aid
· In the North Country, an estimated 2,200 students would either be disqualified from receiving a Pell Grant or see a drop in aid
· In the Hudson Valley, an estimated 9,200 students would either be disqualified from receiving a Pell Grant or see a drop in aid.

To prevent these changes from stripping this critical financial assistance from upstate New York college students, Schumer joined with Senators Jon Corzine, Ted Kennedy, and Gordon Smith to introduce bipartisan legislation today that would only allow the new EFC rules to be applied to students who would not see a reduction in their financial assistance as a result of the change. Schumer and the Senators also sent a letter to President Bush today urging him to restore these cuts in his Fiscal Year 2006 budget proposal which is expected to be released in early February.

“Tuition prices are going through the roof and at the same time the federal Government is planning to cut off financial aid to thousands of students who need help to make their dream of a college degree come true,” Schumer said. “And for parents working hard on a budget to pay these bills, skyrocketing tuition costs mean debt and second mortgages. The federal government has to do more—not less- to help these parents and students out.”

In September, Schumer released a study showing that college tuition has increased by 224% in upstate New York over the last two decades and detailed his plan to let New Yorkers deduct up to $12,000 of college tuition. For the last two years, New Yorkers have been taking advantage of Schumer’s college tuition tax deduction which will be worth $4,000 this year and saving hundreds of dollars to help pay for a college education for their children. Schumer said today that tripling the deduction to $12,000 remains a top priority for 2005.

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