Today, Sens. Mazie Hirono (D-HI) and Patty Murray (D-WA), and Reps. Mark Pocan (D-WI) and Bobby Scott (D-VA) introduced a bicameral bill – the Pell Grant Preservation and Expansion Act of 2021 – that would make NCAN’s top priority of doubling the
Pell Grant a reality.
This bill addresses the stagnating purchasing power of the Pell Grant for the long term by setting a five-year plan to reach a $13,000 maximum Pell Grant in 2027-28, which is double the 2021-22 maximum award of $6,495. Further, the Pell Grant maximum
would be automatically adjusted for inflation each year annually after reaching the $13,000 threshold.
“Doubling the Pell Grant will target financial aid to our students with the greatest financial need,” said Kim Cook, executive director of NCAN. “This legislation would provide certainty to Pell Grant funding and expand access to undocumented students,
part-time students, and students who need additional time to complete their postsecondary programs.”
Students who receive Pell Grants face a dwindling pool of truly affordable public postsecondary options and rising unmet need in their pursuit of a degree. NCAN’s research shows that only 23% of public
bachelor’s degree institutions and 41% of community colleges were affordable for a student who received the average Pell Grant in 2018-19.
Reversing the trend of decreasing affordability is a key step necessary to close the equity gaps in postsecondary attainment.
At its historic high, the Pell Grant covered nearly 80% of the cost to pursue a bachelor’s degree at a public institution. That figure for this coming academic year is only 29%. This new bill would set the Pell Grant on the path to reach NCAN’s goal of
a purchasing power of 50% of the cost of attendance by the end of the decade.
In addition to laying out a plan for Pell Grant increases and moving the Pell Grant to mandatory funding with the future award fixed to inflation, this bill makes several other positive changes for the students whom NCAN members serve.
The bill expands
Pell Grant eligibility to students who are undocumented and returns the lifetime limit on Pell Grant access to 18 semesters. The new proposal would also allow students to receive a minimum Pell Grant of 5% (rather than the current 10%) of the maximum
award. This last change is particularly impactful for “less than half-time" students who currently can lose their Pell Grant eligibility if their cost of attendance is less than the minimum Pell Grant threshold.
The Pell Grant Preservation and Expansion Act also makes changes to the financial aid eligibility formula that build upon the FAFSA Simplification Act of 2020.
Students who receive means-tested benefits (such as SNAP) would be automatically eligible for the maximum Pell Grant award. This change has been a longtime priority for NCAN because it provides early awareness for students about their Pell eligibility
and prevents the federal government from repeatedly asking students to prove their income.
Further, students who receive a negative Student Aid Index (SAI) under the new aid allocation formula would be eligible for additional Pell dollars above the maximum amount. This means a student who receives the lowest SAI of -$1,500 would receive those
additional dollars toward their Pell Grant—for a total of $14,500 by the end of the bill’s five-year implementation period.
This proposed new law also addresses Satisfactory Academic Progress (SAP). It would require institutions to provide academic warning periods for students before they lose access to federal financial aid due to not meeting SAP requirements.
Further, it creates onramps for students who lost access to federal financial aid due to SAP requirements to return to eligibility after a leave of absence from higher education.
NCAN endorses this law as a pathway to both expand access to and increase the affordability of higher education for our students. Now that the bill has been introduced, it will be sent to the respective education committees for review.
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