NCAN has long advocated for federal policies that will help close equity gaps in postsecondary attainment. Many of these inequitable outcomes are tied to affordability challenges. Our Growing Gap research found that only 41% of community colleges and 23% of public four-year colleges were affordable to Pell Grant-eligible students in 2018-19.
The Biden administration and the new Congress are making significant strides on proposals to address college affordability. During his first joint address to Congress, President Biden outlined his American Families Plan,
which includes a proposal for free community college tuition through a federal-state partnership, and an increase of $1,400 to the maximum Pell Grant in addition to the $400 increase proposed in his budget. And in Congress, senators and representatives
have introduced three different pieces of legislation: the America’s College Promise Act, the College For All Act,
and the Debt-Free College Act. These three proposals use a variety of methods to cover free community college tuition,
free bachelor’s degree tuition for qualifying students, and/or Pell Grant investment.
“NCAN’s policy priority has been to double the Pell Grant because it is targeted, need-based aid to support bachelor's degree completion where the largest inequities persist for students of color, first-generation college students and students from low-income
backgrounds,” said Kim Cook, NCAN executive director. “We look forward to working with this administration and Congress to find the best route for equitable outcomes to support student success and robust partnerships to support state investment.”
As Congress weighs a once-in-a-generation-size shift in how higher education is financed, it is vital that NCAN members share our perspectives on the various proposals to contribute to the conversation. Whether through reconciliation, or regular legislative
channels, it is likely that Congress debates the best way forward to address college affordability throughout the summer. NCAN welcomes this robust national discussion of a problem we have long flagged as a top barrier to access and success for our
students.
In the coming weeks, NCAN will continue to review these proposals through the lens of our mission and our commitment to equity, which guide our policy principles. Below is a high-level summary
of each proposal based on currently available details.
American Families Plan
Proposed by: President Joe Biden
Calls for a $1,400 Pell Grant increase ($1,800 total when paired with President Biden’s budget proposal).
Guarantees universal, first-dollar free tuition and fees at public community colleges in states that opt in.
Provides eligibility to DREAMers for free community college and Pell Grants.
Invests in HBCUs, TCUs, and MSIs at associate and bachelor’s level to increase affordability for students with family incomes under $125,000.
Creates a grant program to provide funding focused on improving student outcomes.
Invests in diversifying the teaching profession to improve college readiness.
America’s College Promise
Introduced by: Sens. Patty Murray (D-WA) and Tammi Baldwin (D-WI), and Reps. Bobby Scott (D-VA) and Andy Levin (D-MI)
Guarantees universal, first-dollar free tuition and fees at public community colleges in states that opt in.
Requires participating states to maintain their need-based aid and higher education investment and match federal funding at the rate of $1 for every $3 received.
Provides free tuition and fees for Pell Grant recipients at HBCUs, TCUs, and MSIs at associate and bachelor’s level for 60 credits.
Includes funding to help states improve student outcomes.
College for All Act
Introduced by: Sen Bernie Sanders (I-VT) and Rep. Pramila Jayapal (D-WA)
Doubles the Pell Grant to $12,990 and converts it to a 100% mandatory spending program along with expanding eligibility to 15 semesters and prohibiting for-profits from receiving the increased Pell amount.
Guarantees universal, first-dollar free tuition and fees at public community colleges in states that opt in.
Guarantees tuition-and-fee-free bachelor’s degrees from public institutions for students with family incomes below $125,000 in states that opt in.
Requires participating states to maintain their need-based aid and higher education investment and match federal funding at the rate of $1 for every $3 received.
Provides eligibility to DREAMer students.
Increases significantly TRIO and GEAR UP funding.
Debt-Free College Act
Introduced by: Sen. Brian Schatz (D-HI) and Rep. Mark Pocan (D-WI)
Provides debt-free college – based on full cost of attendance – at all public institutions for Pell Grant recipients by meeting unmet financial need. Students would be asked to pay their Expected Family Contribution, and federal (including Pell) and
state grants would be used to cover the remaining balance without loans.
Provides DREAMer students with Pell Grant eligibility.
Creates a federal-state partnership with federal funds matching state funds 1-to-1.
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