Issue Briefs
Student Aid Funding
NAICU supports increased federal funding for the proven student aid programs, which work together to ensure that qualified low- and middle-income students who are prepared for college have the same opportunity to get into, persist, and complete college as students with greater resources.
NAICU advocates for the funding of the Pell Grant program, Supplemental Educational Opportunity Grants (SEOG), Federal Work-Study (FWS), TRIO, GEAR UP, and Graduate Assistance in Areas of National Need (GAANN).
NAICU co-founded and participates as a member of the steering committee for the Student Aid Alliance, a coalition that brings together more than 40 organizations representing students, financial aid officers, colleges, and others who support student aid. For FY 2025, the Alliance requests that Congress double the maximum Pell Grant award and provide significant increases to all programs.
About
The federal student aid programs have enjoyed bipartisan support for decades. Currently, the federal government provides almost $130 billion in student loans, grants, and work study each year to help more than 9 million students pay for college.
NAICU has supported federal funding for student aid since its inception in 1976; and the Student Aid Alliance has been regularly successful in turning proposed cuts to student aid into program increases since 1994.
Status of FY 2025 Student Aid Funding
As of August 2024, the House and Senate Labor-HHS-Education subcommittees have written their FY 2025 spending bills, but neither chamber has held a floor vote. The House subcommittee had a smaller allocation than the Senate subcommittee, thus reduced funding for some programs (see below). The next steps in the funding process are expected to include Congress enacting a continuing resolution before the beginning of the fiscal year, which begins on October 1, leaving negotiations on final funding levels to a post-election lame duck session.
The proposals for student aid funding currently stand as follows:
- Pell Grant Maximum: House maintains at $7,395; Senate increases to $7,495
- SEOG: House cuts funding in half; Senate maintains at $910 million
- Federal Work-Study: House cuts funding in half; Senate maintains at $1.23 billion
- TRIO: House maintains at $1.19 billion; Senate increases to $1.21 billion
- GEAR UP: House maintains at $388 million; Senate increases to $393 million
- GAANN: House eliminates funding; Senate maintains at $24 million
College presidents are one of the most respected voices heard by Members of Congress.
- Use your NAICU Student Aid Data Sheet to show how federal funding helps students at your school.
- Bring a student or student story with you when you meet with your congressional representatives.
- Activate the Contact Congress campaign on your campus to get more voices supporting student aid funding.
- Stephanie Giesecke, for legislative information: Stephanie@NAICU.edu
- Suzanne Stokes Vieth, for state information: Suzanne@NAICU.edu
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