discussion of the pell grant june 18, 2013 kim cook, ncan

Discussion of the Pell GrantJune 18, 2013

Kim Cook, NCAN

What is the Pell Grant?

• Federal grant based solely on financial need

• Foundation of federal financial aid program

• Single largest source of federal grant aid supporting postsecondary education students

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History of the Pell Program

• Introduced in 1972 by Senator Claiborne Pell

• Awarded to students with financial need on a slide scale based on their income

• Over time eligibility and amount of grant have continued to vary

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Pell Grant: Eligibility and Profile

• Full-time or part-time undergraduate student

• Meets financial requirements: most recipients have an AGI under $50,000 annually.

• 44% over age 24 and 25% over age 30 in 2010

• 60% considered independent

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Pell Grant Recipients:$5550 is current max award

04/21/23 http://media.collegeboard.com/digitalServices/pdf/advocacy/policycenter/advocacy-rethinking-pell-grants-brief.pdf

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Purchasing Power of Pell

04/21/23 http://krugman.blogs.nytimes.com/2012/03/12/building-a-caste-society/ 6

What’s an EFC?

• Estimated Family Contribution• Students with lowest EFC ($0) receive

most dollars and with highest receive least or none, based on a sliding scale

• Families with AGI of $23,000 are automatically eligible for the full grant

• Families with an EFC of $5082 or above are not eligible for a Pell Grant

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Recent Changes to the Pell Grant

• Elimination of ability to receive additional Pell dollars for summer study

• Decrease of automatic EFC from AGI $30,000 to $23,000

• Students are eligible for 12 semesters of aid (previously 18 semesters)

• Students must have a high school diploma or GED to qualify

04/21/23 http://studentaid.ed.gov/about/announcements/recent-changes 8

Projections of Funding Shortfall

• 2009: American Recovery and Relief Act

• 2013: CBO finds Pell grant over funded with 9.2 billion surplus

• Long term problem: Congress funds grant at same amount plus temporary $, must find long term funding plan or change eligibility or max. award

04/21/23http://edmoney.newamerica.net/blogposts/2013/

new_pell_grant_estimates_buy_time_long_term_fix_still_needed-788909

Motivation for Changes: Budget or Effectiveness?

• Previous slide shows changes based on budget necessity

• Must consider how to make program most effective, not just make budget numbers work

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NCAN Recommendations

• Pell must remain a priority for our students• Congress should examine federal education

taxes, which are not well used to serve low-income students

• Additional Pell grant dollars should be available for students to study year round

• Federal government should track Pell graduation rates by institution

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What Can You Do?

• Make sure you students fill out the FAFSA• View the completion percentage here:

http://studentaid.ed.gov/about/data-center/student/application-volume/fafsa-completion-high-school

• Provide feedback to the Department of Education through Affinity Group

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Questions and Contact Information

• Kim Cook• Executive Director• National College Access Network • 202-347-4848• cook@collegeaccess.org

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