Some Iowa State students could be borrowing less money for college if a new proposal to increase Pell Grant money is passed.

The White House’s proposal is part of the FY2001 program, which is aimed at increasing student retention rates across the country. The proposal would increase the maximum Pell Grant from $3,300 to $3,500.

Earl Dowling, director of financial aid, said 5,300 undergraduates at Iowa State received Pell Grants for fall 1999. He said he believes the increase would help student retention.

“The more grant money we have, the less money students have to borrow,” he said.

The loan program is the fastest-growing federal financial aid right now, he said. ISU students borrowed $89.5 million in federal loans in fall 1999.

“Anything we can do to see more growth in grants than in loans is going to benefit students,” he said.

However, Dowling said he would like to see the Pell Grant limit increase to $4,000.

“This office believes that more money should be available for Pell Grants,” he said.

Dowling also said the FY2001 program still has to go through Congress, which will be a long process. “We’re a long way from any final decision on the Pell Grant,” he said.

Dowling said students should get involved in the budget process.

“Student voice and student action is always important in helping Legislature make their decisions,” he said.

According to the Chronicle of Higher Education, one of the Clinton administration’s goals in proposing the FY2001 program is to increase retention among minority students.

Rafael Rodriguez, director of Minority Student Affairs, said the retention rates among minority students are lower than for non-minority students across the country. Financial, academic and social problems contribute to the lower rates, he said.

“That’s a challenge for all institutions to work on addressing those issues,” he said.

However, Rodriguez said the problems differ between universities.

“They have nuances as to why that’s happening with their own institution,” he said.

According to the 1999-2000 ISU Fact Book, Iowa State retention rates for the first year for Caucasian students is 84.6 percent while for Hispanic students it is 81.1 percent, and 82.7 percent for blacks. The retention for four years is 25.5 percent for Caucasian students, 8.9 percent for Hispanics and 9.7 percent for blacks.

Rodriguez said Iowa State’s effort to boost minority retention includes increasing the number of George Washington Carver scholarships from 60 to 100 this year. There also will be a new scholarship program called the “Multicultural Visions Program,” which will begin in fall 2000.

“We’re looking at how to attack those issues and how to increase that retention,” he said.

The Pell Grant is a need-based grant, rather than race-based, Rodriguez said. However, the increase in grant money will help retention among both minority and non-minority students at the university.

“Anytime you can get gift aid instead of loan debt, you can increase retention,” he said. “It’s a major, major proposal because it affects the entire United States.”