Paying for college: Stimulus funds allocated to help students

Many college students on Guam will have an easier time paying for college this coming school year, thanks to stimulus funds from the American Recovery and Reinvestment Act of 2009.
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An additional $4 million has been allocated to Guam for the Pell Grant program, which provides direct aid for undergraduate students who demonstrate financial need.

The funds will be used for a $500 increase in Pell Grant funding -- for students who qualify for the full amount -- during the 2009-2010 academic school year. Students who receive the full Pell grant will have $5,350 to pay for college next school year.

This covers the total cost of tuition at UOG for a full-time, undergraduate resident for the year, even with the recent tuition increase, said Christina Manglona, program coordinator at the University of Guam financial aid office. And money will be left over for books and supplies.

President Obama has further proposed to increase Pell Grant funds for students by another $200 in his fiscal 2010 budget, by recommending a maximum Pell Grant award of $5,550 for the 2010-2011 academic year.

"I think that's really great. Students don't have to rely on pulling out another loan," said UOG senior and Financial Aid Office work-study student Doris Techaira about the $500 increase.

"I'm glad of the increase," said Diana Elayda, 20, who transferred recently to UOG from Saipan. "It will help. I'm trying to avoid loans, I don't want to have a bunch of loans coming at me when I graduate."

Elayda, who is a double major in criminal justice and public administration, found funds for college through federal grants, work-study, the university's Trio program and the G.I. Bill stipend she receives as a reservist for the U.S. Army.
Tax credit

Students and their families on Guam also can benefit from the $2,500 American Opportunity Tax Credit, as Guam's tax code mirrors the federal tax code, said Department of Revenue and Taxation Director Art Ilagan.

The credit is partially refundable and can be used for college tuition funds paid for the 2009 and 2010 tax years.


The credit was created by the ARRA stimulus act, and Obama has proposed in his 2010 budget to make the tax credit permanent.

Manglona said that 75 percent of all undergraduates at the University of Guam receive either partial or full Pell Grants to attend school, and 90 percent of all students at UOG receive some form of financial aid, in the form of scholarships, loans and aid programs from the local and federal governments.
Making it easier

Obama also has recently announced that a simpler and more user-friendly Free Application for Federal Student Aid, or FAFSA, is now in place, with changes that already have been made and further changes that will be phased in over the next few months, according to a news release from the U.S. Department of Education.

The FAFSA Web site now provides instant Pell Grant estimates and student loan eligibility, so students no longer have to wait for weeks to find out about funds for college. During the summer, questions will be consolidated on the online application to make the process easier.

The President also will be introducing legislation to Congress to eliminate 26 financial questions on the FAFSA, which have little impact on the aid award and are difficult for students to complete.

The aim of streamlining the FAFSA is to boost college enrollment throughout the country.

"There are few things as fundamental to the American dream or as essential for America's success as a good education," said Obama in remarks made in April. "America cannot lead in the 21st century unless we have the best educated, most competitive workforce in the world. And that's the kind of workforce -- and the kind of citizenry -- to which we should be committed."


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