Economy, Demographics Cited in Student-Aid Surplus

By Robert C. Johnston

Washington

In 1989, the federal Pell Grant program began compiling a deficit that reached $702 million in 1992. Today, the aid program for college students is running a $1.3 billion surplus, the second consecutive year money has been left over.

Department of Education officials say shifting student demographics and a healthier economy are responsible for the surplus, which Congress and President Clinton want to use to raise...