Information about how the American Recovery and Reinvestment Act (ARRA) will affect Pell Grants and other aid for low income students.
Roughly $17 billion to increase the
maximum Pell and eliminate the program's current shortfall.
The funding will
increase the maximum Pell to $5,350 in 2009-10 and $5,550 in 2010-11.
Nearly $14 billion to temporarily
replace the Hope Scholarship with a new $2,500 tax credit for tuition and other
expenses - including textbooks. The new credit will benefit lower-income
families who do not pay taxes because 40 percent ($1,000) is refundable. It is
also available to families with higher incomes as it is phased out for people
making $80,000 ($160,000 for families with a joint income).
