Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: January 19, 2007             No. 2

Tuition Sensitivity 

The reduction of the student enrollment fee to $20 dollars per credit demonstrates California’s and the Governor’s commitment to maintaining affordable access to California Community Colleges. While this is great news for the 2.5 million students in the system, the reduction in fees does have a catch—it will prevent students from receiving the maximum Pell Grant of $4,050. As a result, because of the “tuition sensitivity” language included in the Pell Grant authorizing statute, California students will receive fewer funds than any other students in the nation, as California is the only state affected. 

What creates an even further challenge is the timing of the fee reduction and its impact on the Pell Grants. As the fee reduction becomes effective in Spring 2007, California Community Colleges will be faced with the technical complications of paying students a “regular” Pell Grant amount for the fall semester and a lower “alternate” Pell Grant amount for the spring semester. The U.S. Department of Education (USDE), is uncertain its system can accommodate two Pell Grant amounts for one student in the same academic year, and the statutory language within the Higher Education Act (HEA) limits their ability to solve the situation without an amendment to the HEA.   

Language to remove tuition sensitivity was included in President Bush’s Fiscal Year 2006 Budget and both House and Senate HEA reauthorization bills. While there is bi-partisan support for eliminating tuition sensitivity, there is no guarantee that the HEA will be reauthorized in June 2007. As a result, Community College CEOs are being asked to send letters of support to their congressional representative to address the tuition sensitivity issue. Specifically, members of the California Congressional Delegation are being asked to include language in the fiscal year 2007 Labor-HHS-Education appropriations bill, which would prevent California community college students from being penalized because they have selected a low-cost institution.

Members of Congress are being encouraged to amend the appropriations bill for 2007-08 to remove Section 401(b) (3), the tuition sensitivity clause. Section 401(b) follows: 

            (b) PURPOSE AND AMOUNT OF GRANTS.—(1) The purpose of this subpart is to provide a Federal Pell Grant that in combination with reasonable family and student contribution and supplemented by the programs authorized under subparts 3 and 4 of this part, will meet at least 75 percent of a student’s costs of attendance [defined as tuition and fees, books and supplies, transportation, room  and board, child care, and miscellaneous personal expense], unless the institution          determines that a greater amount of assistance would better serve the purposes of section 401. 

            (2)(A) The amount of the Federal Pell Grant for a student eligible under this part shall be—

            (i) $4,500 for academic year 1999-2000;

            (ii) $4,800 for academic year 2000-2001;

            (iii) $5,100 for academic year 2001-2002;

            (iv) $5,400 for academic year 2002-2003; and

            (v) $5,800 for academic year 2003-04,

            Less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year 

According to the California Community Colleges System Office, more than 260,000 California Community College students will be affected in 2007-08 by the reductions of their Pell Grant award payments—an approximately $17 million loss to the state of California. Payments to the lowest income and most disadvantaged students attending full time will be reduced by $112, and those less than full time will also suffer losses proportionate to their awards. The Federal Division has been in ongoing contact regarding this issue with key staff for all of the California Congressional Delegation officers during Washington visits throughout the year. 

We must all come together to assist the neediest of our Pell Grant students to resolve this issue once and for all. We will keep you posted on the outcome of this issue. Attachment B is a sample letter provided by the System Office. 

—Jamillah Moore, Ed.D.