Federal Pell Grant No Longer Pays Anyone’s College Tuition: Legislation Introduced To Increase, Expand Grant Amount

GILLIBRAND ANNOUNCES LEGISLATION TO DOUBLE PELL GRANT, MAKE COLLEGE MORE AFFORDABLE FOR WORKING FAMILIES

Editor’s note: Most college students around the country leave college with a mountain of student debt.  This applies whether or not they graduated, and it must be paid back regardless of their employment status or income level.  There are exceptions, as most student loan companies don’t want people to default, but most Americans are unaware of the programs available to help avoid default.  

While New York college students planning to enroll in a SUNY or CUNY college are eligible for TAP (which is not merit based but is income based and provides a maximum of $5,665 per year) and the Excelsior Scholarship program (which is need based but limited to a specific annual number of recipients), other states do not have such funding.  Recipients of Excelsior Scholarships must live and work in NY for the number of years the scholarship was received.  Both of these programs require residence in the state for at least a year prior to applying.

So while an NYC college student can reasonably expect to pay no tuition for a CUNY school, and a small tuition at a SUNY school (SUNY generally costs more than CUNY but not always) if they are low income, residents of other states are often not as fortunate, especially in more rural underfunded areas of the country. This bill seeks to address this discrepancy at the federal level. 

WASHINGTON, D.C. – Today, U.S. Senator Kirsten Gillibrand held a video press conference to announce the introduction of the Pell Grant Preservation and Expansion Act, legislation to make college more affordable for working families. The Federal Pell Grant Program offers low-income students grants of up to $7,395 each academic year to offset the cost of an undergraduate degree.

At its peak in the 1970s, the maximum Pell Grant covered more than 75% of the cost of attending a four-year public college. Today, it covers less than a third. Gillibrand’s legislation would double the maximum Pell Grant and expand eligibility for the program to help ensure that a college education is not out of reach for working families.

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“As the cost of college skyrockets and federal financial aid programs fail to keep up, too many low-income students are forced to take on crippling amounts of debt, or to drop out of school entirely,” said Senator Gillibrand. “This bill acknowledges that $7,395 – the maximum current Pell Grant – simply isn’t enough to help with cost of attendance of $30K or more. By doubling the maximum Pell Grant, expanding access for part-time students, and automatically qualifying the families most in need, the Pell Grant Preservation and Expansion Act will help put a college degree within reach for all students who want one, regardless of background. I look forward to getting it passed.” 

In New York, approximately 370,000 students receive Pell Grants. Over one-third of SUNY students—including over 40 percent of SUNY community college enrollees—are Pell eligible. These grants provide a lifeline for working families to help to afford a college education both at four-year institutions and community colleges. 63 percent of Pell Grant funds go to students whose families earn 30,000 dollars annually, and an estimated 92 percent of Pell Grant recipients had a total family income at or below 60,000 dollars.

Specifically, the Pell Grant Preservation and Expansion Act would: 

1. Increase the Pell Grant maximum award to $10,000 for the 2025-2026 academic year and nearly double the award over the next four years to $14,000 for the 2029-30 academic year and beyond.
2. Automatically qualify low-income students enrolled in federal benefit programs like SNAP or Medicaid for the maximum award, and to receive an extra award of up to $1,500 in addition to the maximum Pell award ($15,500 total).
3. Shift the Pell Grant program to fully mandatory funding to ensure that students can count on receiving their Pell Grants throughout their time in college, irrespective of potential federal budget cuts.
4. Make students eligible to receive the Pell Grant for 18 semesters instead of the current 12 in order to accommodate students taking fewer credits per semester over a longer period of time.
5. Broaden access to Pell for part-time students to ensure that students who can only take a few classes at a time are able to retain access to aid as the maximum award grows.

Banner Image: College classroom. Image Credit – javier trueba

Senator Kirsten Gillibrand