The federal Pell Grant program is staring into the face of a huge shortfall for the 2008-09 academic year, according to the NY Times. The grant program that provides assistance for college on the basis of economic need could see a short fall of as much as $6 billion for the academic year just now starting.

A number of factors have come together to create the problem. The Chronicle of Higher Education points to the increased size of the Pell Grant as one factor contributing to the short fall.


© Tracy O

Inside Higher Ed ran a store this weekend on the increased number of Pell Grant applicants. The number of applicants for the Pell Grant has increased by 800,000 students compared to the 2007-08 academic year. The increase is being blamed on the current economic crisis in America. Hardest hit:

• Neveda has seen a 32% increase in Pell Grant applicants
• Pell Grant applications have increased by over 24% in Arizona, Georgia, and Florida
• Increases of about 20% have occurred in Alabama, Arkansas, California, DC, North Carolina, and Virginia

The problem is aggravated by short falls in funding in previous years.