Education Officials Propose New College Dropout Repayment Plan

Wednesday, August 11th 1999, 12:00 am
By: News On 6

(Washington-AP) -- Attention Pell Grant recipients: in the
future, dropping out of school could cost you.

The Education Department plans to change the rules regarding
dropouts paying back federal grant money.

Right now, students who quit school before a semester starts, or
just a few days in, are usually the ones who repay the government.
Financial aid officers tally up the amount they spent for supplies,
compare that to the grant amount, and charge students the

But officials now are calling for a single grant-repayment
formula to cover everyone who quits -- regardless of how long they
stay on campus.

Critics say the poorest students would suffer the most. But the
Education Department says when aid is rewarded to students, it's
expected they will complete the term.