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Penn's chance of receiving $110,000 in federal funds to help cover the costs of hosting students displaced by Hurricane Katrina has all but disappeared.

Just two months ago, Penn seemed to have the money coming its way. Congressional leaders now say that is unlikely to happen -- and apparently the University does not mind.

A plan to give colleges $1,000 for each hurricane-displaced student they hosted was abandoned by Congress at the end of last month, effectively leaving universities to foot the bill.

In September, the Department of Education announced a $227 million plan to help colleges and universities cover the costs of taking in evacuees. In Penn's case, the 110 students admitted from regions affected by the storm meant $110,000 for the University.

President Bush, however, did not include that money in the emergency spending plan he submitted to Congress at the end of October.

Still, Penn officials say they are not concerned about the plan's apparent abandonment.

Mike Harris, a University administrator, said that the University was never searching or hoping for compensation. He said the promise of reimbursement did not play a role in Penn's decision to host student evacuees.

"Penn made a humanitarian and not an economic decision," Harris said.

Though Harris acknowledged that a lot of time has been spent making sure evacuees are accommodated, hosting students "did not represent a substantial financial drain to the University."

When President Amy Gutmann decided "that Penn could contribute to the effort, the financial aspects were not the driving force," Harris said. "Reimbursement was not anticipated or part of the discussion at the time."

The Department of Education "still supports the proposal" despite the fact it was not included in Bush's emergency spending package, department spokeswoman Samara Yudof.

In addition to the $1,000-per-student compensation, the proposal included funds to help displaced adults repay their student loans. It would also have aided colleges and universities in the severely damaged areas and supported students enrolled in area institutions.

Jessica Silver, a Tulane University sophomore currently studying at Penn, praised the actions of colleges taking in displaced students but said that she supports the government's decision to abandon the compensation plan.

"This is a crisis, and [colleges taking in students] should be looked upon as a good thing," Silver said. "I don't think colleges should be compensated $1,000. What does that cover? It's like a gift."

Silver said that universities taking in students are "doing their part" to help victims of Katrina and have accepted their share of the burden.

"I feel like everyone has to help out, and every college has so much money to begin with," Silver said. "The government has enough to deal with" when it comes to hurricane relief.

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