The maximum available Pell Grant award would increase based on changes in the Consumer Price Index plus an additional 1 percent. That means a 2 percent hike of the price index could translate into a 3 percent increase in Pell Grant money, said Zack Pohl, spokesman to U.S. Rep. Mark Schauer, D-Battle Creek.

The Consumer Price Index is a measure of the average cost of consumer goods and services. It is used to indicate inflation.

“It is important to keep the Pell Grant money increasing as inflation increases so (students) don’t lose ground,” said Val Meyers, associate director of the MSU Office of Financial Aid.

There were 7,004 students at MSU who received Pell Grants during the 2007-08 school year.

The changes in the Pell Grant’s funding would increase the grant’s maximum award to $5,550 in 2010 from the current $5,350, Meyers said.

But the current Pell Grant maximum award includes $490 in supplemental funding, which is set to run out, Meyers said.

The grant would be tied to the price index starting in 2011, and by 2019, the award would increase to $6,900.

“Increasing the grants will result in students being able to stay in school and get their degrees,” Schauer said.

The House is expected to vote on and pass the bill today, Schauer said.

But some representatives worry the bill will not be effective.

“This bill will eliminate student choice and create a complicated government-run system. As a result, it is unlikely millions of students would save money, and likely that taxpayers will pay more,” said U.S. Rep. Mike Rogers, R-Brighton, in an e-mail.

Schauer also submitted an amendment to the bill that would help out-of-work employees go back to school to receive training for 21st-century jobs.

“It will allow schools, states and nonprofits to encourage dislocated workers to complete their degrees,” he said.

The bill also simplifies the Free Application for Federal Student Aid, or FAFSA, form and lets applicants use tax return information to apply.

The revised FAFSA form would eliminate dozens of questions about assets that have very little impact on financial aid eligibility, Pohl said in an e-mail.

It also would allow the U.S. Department of Education and Department of Revenue to share information pertinent to the financial aid application.

“This is basically paving the way by allowing the two areas to talk to each other about this data,” Meyers said.