About 100 ISU students could lose eligibility for Pell Grants, and several others may see their aid packages reduced in 2005 after the federal government updates tax tables for this year’s Free Application for Federal Student Aid.

Financial aid for an estimated 800 to 900 Iowa students and nearly 90,000 nationwide could be affected because of a modification of the formula figuring a family’s adjusted gross income, according to the Iowa College Student Aid Commission.

“We are hoping that by getting information out early, students can plan accordingly,” said Roberta Johnson, associate director of the office of student financial aid. “We will try to utilize funds from other sources to minimize the impact as much as possible.”

Students are awarded Pell Grants based on how much their families are able to contribute to their education. To qualify, a student’s family can only contribute up to $3,850 toward his or her education. For every $100 a family is able to contribute, the student is eligible for less funding.

The Pell program is one of the largest government-funded aid programs. The loans do not have to be paid back after graduation.

Family contribution can be determined by computing the adjusted gross income for the family after Social Security, federal and state taxes have been deducted from its total income.

This formula has changed by decreasing the percentage of state taxes taken out in the equation, resulting in a higher gross income for every student.

The tax tables that were used to calculate the grant amounts were more than 17 years old. The new tables showed that students had an expendable income 3 percent higher than the previous amount, $4,050.

A total of 12,119 Pell Grants, totaling approximately $28 million, were awarded for the 2003-04 school year among the three Iowa regent schools.

ISU students accounted for 4,803 of the awards, totaling $11.8 million. ISU students can expect a reduction of approximately $269,500 in lost Pell Grants next year, Johnson said.

The change will not affect the neediest students who have a family contribution of $0. However, the new formula will affect almost every other student.

“Some students will see a negative impact,” Johnson said. “You’ll see a lot of students affected in the middle range, which means students will need to borrow more money or work more.”

Keith Greiner, research director at the Iowa College Student Aid Commission, said the updated forms will not affect state grants, which are independent.

Johnson recommends filing a FAFSA as soon as possible in order to get the best aid package available.

“Students should fill out FAFSA now,” she said. “I can’t stress that enough.”

All students who are planning to attend Iowa State or another college next year should complete and submit the FAFSA before March 1 to be considered for the best aid packages.