DOCSLIB.ORG

The Status of Federal Student Aid Programs the Pell Grant, Student Borrowing, and Student Support Programs

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Status of Federal Student Aid Programs the Pell Grant, Student Borrowing, and Student Support Programs The Status of Federal Student Aid Programs THE PELL GRANT, STUDENT BORROWING, AND STUDENT SUPPORT PROGRAMS The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 1 ACE and the American Council on Education are registered marks of the American Council on Education and may not be used or reproduced without the express written permission of ACE. American Council on Education One Dupont Circle NW Washington, DC 20036 © 2015. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, with- out permission in writing from the publisher. Suggested citation: American Council on Education. 2015. The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs. Washington, DC: American Council on Education. SECTION 1 Pell Grants The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 1 Pell Grants Figure 1. Total Pell Expenditures, Maximum and Average Pell Grant, Number of Recipients, and Congressional Funding Figure Level,1: Maximum 2008–09 and to Average 2013–14 Pell Grants (in 2013 Dollars) $6,000 $5,803 $5,947 $5,739 $5,659 $5,645 Maximum Pell Grant1 $5,000 $5,024 $4,019 $4,107 $4,000 Average Pell Grant 1 Dollars $3,676 $3,649 $3,678 per Recipient $3,000 $3,155 $2,000 $1,000 Academic Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Total Pell $19.4B $32.5B $38.2B $34.7B $32.7B $33.7B Expenditures # of Pell 6.2M 8.1M 9.3M 9.4M 9.0M 9.2M Recipients Note: In constant dollars, the congressional funding award level was as follows: $5,350 (2008–09), $5,550 (2009–10), $5,500 (2010–11), $5,500 (2011–12), $5,645 (2012–13), and $5,730 (2013–14).2 Sources: Baum, Sandy, and Kathleen Payea. 2013. Trends in Student Aid. New York: The College Board. http://trends.collegeboard.org/sites/default/files/student-aid-2013-full-report.pdf Baum, Sandy, Diane Cardenas Elliott, and Jennifer Ma. 2014. Trends in Student Aid. New York: The College Board. http://trends.collegeboard.org/sites/default/files/2014-trends-student-aid-final-web.pdf • In 2009–10, the total spending for Pell Grants rose for two reasons. First, the number of recipients increased by 1.9 million students and year-round Pell Grants were made available for the first time. • After the termination of year-round Pell Grants in 2011–12, the total Pell expenditures fell even though the number of students being served continued to increase to more than 9 million students. • The number of students qualifying for a Pell Grant remained at or above 9 million for four consecutive years. • Since the year-round Pell Grant was discontinued, the average Pell Grant awarded to a student has been approximately $3,650—approximately $2,000 less than the Pell Grant maximum. 1 In 2013 dollars 2 Congressional Budget Office In 2013 dollars The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 2 Pell Grants The Expected Family Contribution (EFC) is calculated based on the financial information provided by each student on the FAFSA. The EFC takes into consideration the dependency status of the student (dependent, independent). If the student is independent, the formula may also be adjusted if he or she has dependents. • Only undergraduate students who have an EFC of zero and enroll full time/full year receive the maxi- mum Pell Grant. • Figure 2a illustrates the percentage of students each year who qualify for a zero EFC based on their family income calculation. With the exception of 2008–09, the year before the year-round Pell went into effect, the number of students who have a calculated EFC of zero has remained at or near 66 percent. • As Figure 2b indicates, 85 percent or more of all Pell recipients have a family income under $40,000 per year. • 99.9 percent of all independent students who receive Pell Grants report an income of under $40,000 per year. FigureFigure 2a: 2a: Percentage Percentage of ofPell Pell Recipients Recipients with with a Zero a Zero Expected Expected Family Family Contribution Contribution Total % Zero EFC 2008–09 57.3% 2009–10 67.4% 2010–11 65.9% 2011–12 67.5% Academic Year Academic 2012–13 66.4% 0 50 100 Percent Figure 2b: Percentage of Pell Recipients That Have a Family Income of Under $40K per Year Figure 2b: Percentage of Pell Recipients That Have a Family Income Under $40K per Year % All Under $40K % Dependents % Independent % Independent w/o Dependents with Dependents 2008–09 88.7% 88.7% 99.9% 90.1% 2009–10 87% 82.2% 99.9% 88.2% 2010–11 84.9% 75.5% 99.9% 86.5% 52 2011–12 84.8% 76.1% 99.9% 85.7% Academic Year Academic 2012–13 84.7% 76.9% 99.9% 84.5% 0 50 100 0 50 100 0 50 100 0 50 100 Percent Percent Percent Percent Source: U.S. Department of Education. 2015. “Federal Pell Grant Program Annual Data Reports.” http://www2.ed.gov/finaid/prof/resources/data/pell-data.html The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 3 Pell Grants FiguresFigures 3a–3e: 3a–3e: Inflation-Adjusted Inflation-Adjusted MaximumMaximum Pell GrantGrant Coverage of Published Prices at Public and Private Nonprofit Nonprofit Four-Year Four-Year Institutions Institutions (in 2014 (in 2014 Dollars) Dollars) 3a. Public Four-Year Tuition and Fees 3b. Private Nonprofit Four-Year Tution and Fees % Covered by Pell Grant % Not Covered by Pell Grant % Covered by Pell Grant % Not Covered by Pell Grant 2004-05 $5,095 $5,095 2005–06 2006-07 2007–08 2008-09 2009–10 2010-11 % covered by Pell Grant Academic Year Academic 2011-12 2012-13 2013-14 2014–15 $5,730 $5,730 Percent 0 50 100 0 50 100 3c. Public Four-Year Tution and Fees and Room and Board 3d. Private Nonprofit Four-Year Tution and Fees and Room and Board % Covered by Pell Grant % Not Covered by Pell Grant % Covered by Pell Grant % Not Covered by Pell Grant 2004-05 $5,095 $5,095 2005–06 2006-07 2007–08 2008-09 2009–10 2010-11 Academic Year Academic 2011-12 2012-13 2013-14 2014–15 $5,730 $5,730 Percent 0 50 100 0 50 100 3e. Public Two-Year Tution and Fees % Covered by Pell Grant % Not Covered by Pell Grant 2004-05 $5,095 2005–06 2006-07 2007–08 2008-09 2009–10 2010-11 Academic Year Academic 2011-12 2012-13 2013-14 2014–15 $5,730 Percent 0 50 100 Sources: U.S. Department of Education. n.d. The Federal Pell Grant Program End-of-Year Report, 2012–13. Washington, DC: U.S. Department of Education; unpublished data from the U.S. Department of Education, Office of Education; Baum, Sandy, and Jennifer Ma. 2014. Trends in College Pricing. New York: The College Board; Baum, Sandy, Diane Cardenas Elliott, and Jennifer Ma. 2014. Trends in Student Aid. New York: The College Board. http://trends.collegeboard.org/sites/default/files/2014-trends-student-aid-final-web.pdf The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 4 Figures 3a–e are based on the inflation-adjusted maximum Pell Grant. These figures represent students who receive the maximum award. Students who receive the average Pell award or less than the maximum Pell award would be responsible for taking additional loans or paying directly for the cost not covered by the Pell award. Figure 3a and 3c • In 2004–05 the maximum Pell Grant covered, on average, approximately 80 percent of the tuition and fees at a public four-year institution. • In the past 10 years, the average proportion of public four-year institutions’ tuition and fees covered by the maximum Pell Grant award has decreased from approximately 80 percent to approximately 60 percent. • The average proportion of public four-year institutions’ tuition, fees, room, and board covered by the maximum Pell Grant award has decreased from 40 percent to 30 percent in the last decade. Figure 3b and 3d • The average proportion of private nonprofit four-year institutions’ tuition and fees covered by the maxi- mum Pell Grant award has fallen slightly in the last decade, from approximately 20 percent in 2004–2005 to 18 percent in 2014–15. • The average proportion of private nonprofit four-year institutions’ tuition, fees, room, and board covered by the maximum Pell Grant award is down slightly in the last decade, from approximately 15.5 percent in 2004–05 to 13.5 percent in 2014–15. Figure 3e • The maximum Pell Grant award has covered 100 percent of the average in-state tuition and fees at public two-year colleges for the entire decade. The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 5 SECTION 2 Student Borrowing The Status of Federal Student Aid Programs: The Pell Grant, Student Borrowing, and Student Support Programs 6 Student Borrowing Figure 4a: Percentage of Undergraduate Students Borrowing Federal Subsidized and Unsubsidized Loans Figure 4a: Percentage of Undergraduate Students Borrowing Federal Subsidized and Unsubsidized Loans No Sta ord Loans Subsidized Only Unsubsidized Only Both Subsidized and Unsubsidized Loans 2003-04 73% 12% 4% 11% 2008-09 68% 6% 5% 20% Academic Year Academic 2013-14 67% 6% 4% 24% 0 50 100 Percent Note: Numbers for 2013–14 are based on projected 2013–14 undergraduate headcount enrollment at degree-granting Title IV institutions.
Load more

Recommended publications
  • Redesigning the Pell Grant Program for the Twenty-First Century
    DISCUSSION PAPER 2013-04 | OCTOBER 2013 Redesigning the Pell Grant Program for the Twenty-First Century Sandy Baum and Judith Scott-Clayton The Hamilton Project • Brookings 1 MISSION STATEMENT The Hamilton Project seeks to advance America’s promise of opportunity, prosperity, and growth. We believe that today’s increasingly competitive global economy demands public policy ideas commensurate with the challenges of the 21st Century. The Project’s economic strategy reflects a judgment that long-term prosperity is best achieved by fostering economic growth and broad participation in that growth, by enhancing individual economic security, and by embracing a role for effective government in making needed public investments. Our strategy calls for combining public investment, a secure social safety net, and fiscal discipline. In that framework, the Project puts forward innovative proposals from leading economic thinkers — based on credible evidence and experience, not ideology or doctrine — to introduce new and effective policy options into the national debate. The Project is named after Alexander Hamilton, the nation’s first Treasury Secretary, who laid the foundation for the modern American economy. Hamilton stood for sound fiscal policy, believed that broad-based opportunity for advancement would drive American economic growth, and recognized that “prudent aids and encouragements on the part of government” are necessary to enhance and guide market forces. The guiding principles of the Project remain consistent with these views. 2 Informing Students about Their College Options: A Proposal for Broadening the Expanding College Opportunities Project Redesigning the Pell Grant Program for the Twenty-First Century Sandy Baum Urban Institute and The George Washington University Judith Scott-Clayton Teachers College, Columbia University and the National Bureau of Economic Research October 2013 This discussion paper is a proposal from the authors.
    [Show full text]
  • University of Phoenix's Processing of Student Financial Aid
    UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF INSPECTOR GENERAL 501 I STREET, SUITE 9-200 SACRAMENTO, CALIFORNIA 95814 PHONE (916) 930-2388 • FAX (916) 930-2390 August 24, 2005 Control Number ED-OIG/A09E0015 Mr. Todd S. Nelson President and CEO Apollo Group, Inc. 4615 East Elwood Street Phoenix, AZ 85040 Dear Mr. Nelson: This Final Audit Report, entitled University of Phoenix’s Processing of Student Financial Aid Disbursements for the Higher Education Act, Title IV Programs, presents the results of our audit. The purpose of the audit was to determine whether the University of Phoenix (UOP) has policies and procedures that provide reasonable assurance that the institution properly makes initial and subsequent disbursements to students enrolled in Title IV eligible programs. Our review generally covered disbursements to UOP students who received Title IV funds during the period September 1, 2002 through March 31, 2004. The Objective, Scope, and Methodology section of this report further explains the extent of audit coverage for each aspect of our review. BACKGROUND UOP, a wholly-owned subsidiary of the Apollo Group, Inc. (Apollo), is a private, for-profit institution of higher education offering associate, bachelor, master, and doctoral degrees and professional certificate programs. UOP has 55 campuses and 102 learning centers located in 33 states, Puerto Rico, and Vancouver, British Columbia. Its educational programs are also offered worldwide via the Internet through University of Phoenix Online, a division of UOP. Apollo contracts with Affiliated Computer Services, Inc. (ACS), a third-party servicer, for the processing of financial aid for UOP’s students. UOP is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.
    [Show full text]
  • Financial Aid Renewal Among College Freshmen
    EdPolicyWorks Working Paper: Here Today, Gone Tomorrow? Investigating Rates and Patterns of Financial Aid Renewal Among College Freshmen Kelli Bird1 & Benjamin L. Castleman1 College affordability continues to be a top concern among prospective students, their families, and policy makers. Prior work has demonstrated that a significant share of prospective students forgo financial aid because they did not successfully complete the Free Application for Federal Student Aid (FAFSA), and recent federal policy efforts have focused on supporting students and their families to successfully file the FAFSA. Despite the fact that students must refile the FAFSA every year to maintain their aid eligibility, there are many fewer efforts to help college students renew their financial aid each year. We do not know of any study that has documented the rate at which freshman year financial aid recipients successfully refile the FAFSA, particularly students who are in good academic standing and appear well-poised to continue with their education. The goal of our paper is to address this gap in the literature by documenting the rates and patterns of FAFSA renewal. Using the Beginning Postsecondary Students Longitudinal Study, we find that roughly 16 percent of freshmen Pell Grant recipients in good academic standing do not refile a FAFSA for their sophomore year. Even among high achieving Pell Grant recipients who return for sophomore year, nearly 10 percent do not refile a FAFSA. Failure to refile a FAFSA is strongly associated with students dropping out later in college and not earning a bachelor’s degree. These results suggest that interventions designed to increase FAFSA refiling may be an effective way to improve college persis- tence for low-income students.
    [Show full text]
  • Double the Maximum Pell Grant & Restore State Investment in Public
    How Can Congress Improve College Affordability & Permanently Reduce Reliance on Student Debt? Double the Maximum Pell Grant & Restore State Investment in Public Colleges Our nation’s higher education system remains a key driver of economic growth and social mobility but faces longstanding challenges that have been exacerbated by the COVID-19 pandemic. There remain large racial and economic gaps in college enrollment and completion, and only about 60 percent of all students who enroll in college graduate within six years.1 College is increasingly unaffordable for low-income students, and many colleges lack sufficient resources to provide the comprehensive supports students need to succeed.2 The pandemic resulted in a significant drop in applications and enrollment for BIPOC (Black, Indigenous, and people of color) students, low-income students, and first-generation students — the very students for whom a degree could provide the most life-changing economic benefits — making affordability more urgent than ever.3 SHARE OF TOTAL INCOME NEEDED TO COVER THE AVERAGE NET COST OF COLLEGE IN 2018-19, BY FAMILY INCOME Note: 2018-19 net price figures represent average weighted net prices for first-time, full-time, in-district/in-state Title IV aid recip- ients reported by colleges to the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS); the income levels used in these calculations are the median total income figures for Title IV recipients within each income range, as estimated using the National Postsecondary Student Aid Study (NPSAS) for college students in 2015-16. For decades, the federal government and states have underinvested in students and public institutions.4 Public colleges enroll more than three-quarters of undergraduate students, including 81 percent of BIPOC students, yet state support has been declining for decades, and was battered during the Great Recession.5 Even pre-pandemic, state support had not returned to pre-Great Recession levels.6 Declining state funding does not just mean higher costs for students.
    [Show full text]
  • New Financial Aid Handbook
    GEISINGER LEWISTOWN HOSPITAL SCHOOL OF NURSING FINANCIAL AID HANDBOOK 2019-2020 Financial Aid Harriet Arndt [email protected] 717-242-7206 $ Applying for Financial Aid $ Financial Aid Available $ Verification $ Satisfactory Academic Progress $ Withdrawal $ Consumer Information $ FERPA $ Lending Code of Conduct $ Copyright $ Loan Repayment & Default Management $ Title IX $ Drug, Alcohol, and Tobacco $ Net Price Calculator $ Voters Registration $ Constitution Day $ School Safety $ Financial Literacy $ Credit Card $ IRS-1098T $ Important Website Resources FINANCIAL AID CONTACT INFORMATION The Financial Aid Office is in the Administration Office of Geisinger Lewistown Hospital School of Nursing. Harriet Arndt, Director of Financial Aid 717-242-7206 [email protected] It is very important that you understand financial aid at Geisinger Lewistown Hospital School of Nursing. Being informed to make the right decisions for you now and in the future is the goal of the Financial Aid Office. An Enrollment Agreement will be sent to students at the beginning of each academic year to notify you of important financial information and obligations. The Enrollment Agreement must be signed by the student/parent before financial aid will be calculated. Academic Year An academic year for financial aid purpose consists of 3 trimesters. The fall and spring trimesters are 16 weeks in length, the summer trimester is 12 weeks in length. Financial aid is awarded based on enrollment status: full-time, three quarter time, and half time. HOW DO I APPLY FOR FINANCIAL AID? APPLY FOR AN FSA USER ID AND PASSWORD The FSA user ID and password is used to log into certain U.S. Department of Education websites and acts as an electronic signature for your FAFSA and Federal Direct Student/Parent Loans.
    [Show full text]
  • 2019 National Profile
    NATIONAL STUDENT AID PROFILE: OVERVIEW OF 2019 FEDERAL PROGRAMS Table of Contents Overview ................................................................................................................................................................................. 1 The Federal Pell Grant Program .............................................................................................................................................. 4 Campus-Based Aid Programs .................................................................................................................................................. 6 The Federal Supplemental Educational Opportunity Grant Program .................................................................................... 6 The Federal Work-Study Program .......................................................................................................................................... 8 The Federal Family Education Loan Program and William D. Ford Direct Student Loan Program ....................................... 13 Repayment, Loan, and Delinquency Status .......................................................................................................................... 17 Public Service Loan Forgiveness ................................................................................................................................. 21 Federal Need Analysis ..........................................................................................................................................................
    [Show full text]
  • The EFC Formula, 2020-2021
    THE EFC FORMULA, 2020–2021 What is the EFC? The Expected Family Contribution (EFC) is a number that determines students’ eligibility for certain types of federal student aid. This number is calculated with the EFC formulas, which use the information that students provide on the Free Application for Federal Student Aid (FAFSA®). Financial aid administrators (FAAs) subtract the EFC from students’ cost of attendance to determine their need for the following federal student financial assistance offered by the U.S. Department of Education (the Department): • Federal Pell Grants, • Subsidized Loans through the William D. Ford Federal Direct Loan Program, • Federal Supplemental Educational Opportunity Grants (FSEOG), and • Federal Work-Study (FWS). The Teacher Education Assistance for College and Higher Education Grant (TEACH Grant) is a non-need-based federal program for which a student must also use the FAFSA to apply. The methodology for determining the EFC is found in Part F of Title IV of the Higher Education Act of 1965, as amended (HEA). Tables used in the computation of the EFC for the 2020–2021 Award Year were published in the May 31, 2019 Federal Register (ifap.ed.gov/fregisters/attachments/FR053119.pdf) (84 FR 25244). What is the source of data used in EFC calculations? All data used to calculate a student’s EFC comes from the information the student provides on the FAFSA. A student may submit a FAFSA: • by using FAFSA on the Web, • by using the myStudentAid mobile application, • by filing an application electronically through a school, or • by mailing a FAFSA to the Central Processing System (CPS).
    [Show full text]
  • Reflections on Pell Championing Social Justice Through 40 Years of Educational Opportunity
    Reflections on Pell Championing Social Justice through 40 Years of Educational Opportunity THE PELL INSTITUTE June 2013 FOR FURTHER INFORMATION THE PELL INSTITUTE FOR THE STUDY OF OPPORTUNITY IN HIGHER EDUCATION 1025 Vermont Avenue, NW, Suite 1020 Washington, DC 20005 P 202.638.2887 F 202.638.3808 www.pellinstitute.org ii REFLECTIONS ON PELL June 2013 THE PELL INSTITUTE For the Study of Opportunity in Higher Education About The Pell Institute, sponsored by the Council for Opportunity in Education, conducts and disseminates research and policy analysis to encourage policymakers, educators, and the public to improve educational opportunities and outcomes of low-income, first-generation students and students with disabilities. The Pell Institute is the first research institute to specifically examine the issues affecting educational opportunity for this growing population. Aboutiii 06 ACKNOWLEDGEMENTS 07 PREFACE: From Clay Pell 08 HIGHLIGHTS OF A LIFETIME: Claiborne Pell 10 INTRODUCTION: From Arnold Mitchem 12 WHO RECEIVES PELL GRANTS: A Snapshot PERSONAL FACTS & REFLECTIONS 16 THE BEOG AND ME By Karen Boran, Ed. D. 20 REFLECTIONS FROM A “PELLUMNA” ON THE PROFOUND VALUE OF THE PELL GRANT By Vickie Choitz 22 STUDENT ACTIVISM IN PROMOTING ECONOMIC DIVERSITY: The Continued Relevance of Pell By Spencer Eldred 26 THE PELL GRANT: A Signal of Value By Christopher M. Mullin, Ph.D. 28 GIVE ‘EM HELL...GIVE ‘EM PELL FOR ANOTHER 40 YEARS! By Deborah Northcross 30 TARGETING STUDENTS WITH FINANCIAL NEED: The Pell Grants’ Greatest Strength By Laura W. Perna iv REFLECTIONS ON PELL June 2013 Table of Contents HISTORY, FACTS, & POLICY RECOMMENDATIONS PELL AWARD RECIPIENTS 36 Pell Grant 60 THE PELL GRANT PROGRAM: 82 REFLECTIONS ON THE 40 99 LOIS DICKSON RICE Legislation Timeline More than Just a Number YEARS OF THE PELL GRANT By Justin Draeger PROGRAM 100 MAURA CASEY By Freeman A.
    [Show full text]
  • A New Course for Higher Education
    A New Course for Higher Education STRENGTHENING ACCESS, AFFORDABILITY, AND ACCOUNTABILITY January 2020 TA S K F O R C E Howard P. “Buck” Martha J. Kanter ON HIGHER McKeon (Co-chair) Executive Director, College Former U.S. Representative (R-CA) Promise Campaign EDUCATION Former Chairman, House Former Under Secretary, U.S. FINANCING Education and Labor Committee Department of Education A N D George Miller (Co-chair) Walter M. Kimbrough S T U D E N T Former U.S. Representative (D-CA) President, Dillard University Former Chairman, House Former President, Philander OUTCOMES Education and Labor Committee Smith College F. King Alexander William J. Lennox Jr. President-elect of Oregon Former Superintendent, United States State University Military Academy Former President of Louisiana Former President, Saint Leo University State University Thomas C. Leppert Garrey Carruthers Former Mayor of Dallas Former Chancellor, New Mexico Former Corporate CEO State University Former Governor of New Mexico Adam Looney Senior Fellow, Brookings Institution Michelle Asha Cooper Former Deputy Assistant President, Institute for Higher Secretary for Tax Analysis, Education Policy U.S. Treasury Department Former Deputy Director, Advisory Committee on Student Cheryl A. Oldham Financial Assistance, U.S. Vice President of Education Policy, U.S. Department of Education Chamber of Commerce Former Acting Assistant Secretary, James H. Douglas U.S. Department of Education Office Former Governor of Vermont of Postsecondary Education Former Chair, National Governors Association Wil Del Pilar Vice President of Higher Education Brian K. Fitzgerald Policy and Practice, The CEO, Business-Higher Education Trust Education Forum Former Deputy Secretary, Pennsylvania Member, Dean’s Leadership Council at Department of Education Office of Harvard Graduate School of Education Postsecondary and Higher Education Christine Gregoire John Tierney Former Governor of Washington Former U.S.
    [Show full text]
  • Federal Pell Grant Program of the Higher Education Act: Primer
    Federal Pell Grant Program of the Higher Education Act: Primer November 28, 2018 Congressional Research Service https://crsreports.congress.gov R45418 SUMMARY R45418 Federal Pell Grant Program of the Higher November 28, 2018 Education Act: Primer Cassandria Dortch The federal Pell Grant program, authorized by Title IV of the Higher Education Act of Specialist in Education 1965, as amended (HEA; P.L. 89-329), is the single largest source of federal grant aid Policy supporting postsecondary education students. Pell Grants, and their predecessor, Basic Education Opportunity Grants, have been awarded since 1973. The program provided approximately $29 billion in aid to approximately 7.2 million undergraduate students in FY2017. Pell Grants are need-based aid that is intended to be the foundation for all need-based federal student aid awarded to undergraduates. To be eligible for a Pell Grant, an undergraduate student must meet several requirements. One key requirement is that the student and his or her family demonstrate financial need. Financial need is determined through the calculation of an expected family contribution (EFC), which is based on applicable family financial information provided on the Free Application for Federal Student Aid (FAFSA). Although there is no absolute income threshold that determines who is eligible or ineligible for Pell Grants, an estimated 95% of Pell Grant recipients had a total family income at or below $60,000 in academic year 2015-2016. Other requirements include, but are not limited to, the student not having earned a bachelor’s degree and being enrolled in an eligible program at an HEA Title IV-participating institution of higher education for the purpose of earning a certificate or degree.
    [Show full text]
  • 2020-2021 Federal Student Aid Handbook Volume 1 Chapter 6
    Glossary CFR DCL Eligibility for Specific CHAPTER FSA Programs 6 Most of the student eligibility requirements we have discussed so far apply to all or most of the FSA programs. In this chapter we’ll describe some additional eligibility requirements which are program specific. FEDERAL PELL GRANTS n general, a student must be enrolled in an undergraduate course of study Iat a non-foreign institution to receive a Pell Grant. A student who has earned a baccalaureate degree or a first professional degree cannot receive a Pell Grant. There are teaching certification exceptions to this, however (see the next page). A student who completes a master’s program has earned a degree be- yond the baccalaureate level (in many instances a professional degree), mak- ing the student ineligible for a Pell Grant even if he or she does not have a bachelor’s degree and enrolls in an undergraduate program. A student who has received an associate degree—or any certificate or diploma below the baccalaureate level—and who enrolls in another under- graduate program continues to be considered an undergraduate student until she has completed the curriculum requirements for a first bachelor’s degree. A student with a baccalaureate or professional degree is ineligible even if the degree is from an unaccredited school or is not recognized by your school. Similarly, a student with a baccalaureate or professional degree from a foreign school usually isn’t eligible for a Pell Grant. But because a foreign degree often won’t translate neatly into the American classification, the school must judge whether it equates to a U.S.
    [Show full text]
  • The Growing Impact of the New Pell Grant Funding Steve Katsinas University of Alabama
    Journal of Collective Bargaining in the Academy Volume 0 NCSCBHEP Proceedings 2011 Article 2 April 2011 Public Education/Private Funding - The Growing Impact of the New Pell Grant Funding Steve Katsinas University of Alabama Follow this and additional works at: http://thekeep.eiu.edu/jcba Recommended Citation Katsinas, Steve (2011) "Public Education/Private Funding - The Growing Impact of the New Pell Grant Funding," Journal of Collective Bargaining in the Academy: Vol. 0 , Article 2. Available at: http://thekeep.eiu.edu/jcba/vol0/iss6/2 This Proceedings Material is brought to you for free and open access by The Keep. It has been accepted for inclusion in Journal of Collective Bargaining in the Academy by an authorized editor of The Keep. For more information, please contact [email protected]. Katsinas: Public Education/Private Funding - The Growing Impact of the New THE GROWING IMPACT OF THE NEW PELL GRANT FUNDING: A profile of 205 Community Colleges in 25 States Published by The Keep, 2011 1 Journal of Collective Bargaining in the Academy, Vol. 0, Iss. 6 [2011], Art. 2 Cover Picture Credit: Derrick Flowers and LaKetra Wright. Picture was originally published in the The Daily Yonder on June 14, 2010, at http://www.dailyyonder.com/pell-grants-are-crucial-rural-college- students/2010/06/14/2793. The cover picture was taken outside the single building that houses the Carrollton Center of main office of the Pickens County Center of Bevill State Community College in Carrollton, Alabama. Students pictured, from right include Shanese Sullivan, Travisha Bailey, and Maresha Lacy, who are waiting with many others to apply for the new Summer Pell Grants.
    [Show full text]