Although fees might increase in the CSU system, there is-some good news: Pell grants – federal money for lower-income students – are being increased for the first time in four years. H.D. Palmer, deputy director of-finance for California, said Pell grants would get a significant increase over the next five years.

“The proposal is to have Pell grants increase from the current level, which is $4,050, and it would go to $5,400 over the course of the next five years,” Palmer said about the yearly amount.

Representative George Miller, a California Democrat, said that the grant would increase $260 per year. Next year would put the Pell Grant at $4,310, and Miller said the House and the Senate must still approve the resolution.

Students and administrators such as Financial Aid Director Craig Yamamoto are very excited that there is going to be an increase.-“I like the idea of getting more free money that I never have to pay back,” said Stacey Knauff, a senior liberal studies major.

Michelle Tyler, a junior psychology major, said she is very happy that Pell grants are going to be increased. “An increase in the Pell Grant program means more students will be able to attend college,” Tyler said.

Yamamoto said the amount of Pell grant aid that students receive is based on how much their families are going to be contributing toward your education, which needs to be below $3,700 per year. The student full-time status is also a factor. Yamamoto added that Pell grants only account for portion of a student’s aid. But, with Pell grants being increased, the amount of other aid can be lowered, he said.

A report was released by the Center for College Affordability and Productivity found that as Pell grants increase, fees would go up as well.

“The study found that for every new dollar of grant made per student, tuition rates rise by somewhere between 35 to 40 cents per student, meaning the net financial gain to the student is very substantially less than what would appear to be the case,” according to the report.

Yamamoto said that he disagrees with the study.-“There might be an argument in favor of this point of view with private institutions, especially those with large endowments (they have their own private funds they can award as they see fit),” Yamamoto said.

“My understanding of how fees are set in California with the three public segments, UC, CSU and community colleges, are done in conjunction with the system wide-offices that govern the three segments, along with discussions with the governor and/or his appointees,” Yamamoto said.

Yamamoto said the governor’s office would have to decide, along with the Chancellor’s office and the Board of Trustees, to determine how much the fee increase would be.

Philip Malan can be reached at [email protected]