Pell Grants
The Pell Grant Program has been successful in assuring access to college for our nation’s low-income undergraduates—assisting millions of students since its inception. The program’s focus on college access for low-income students, and its role as the foundation on which other federal financial aid is built, must be maintained.
The highest priority for the program is ensuring adequate funding. Through a combination of appropriated and mandatory funds, the total maximum grant is $6,495 for the 2021-22 award year. This support must be maintained and expanded to increase the amount of resources to finance a postsecondary education for low- and middle-income students.
More specifically, NAICU believes that the Pell Grant amount should be doubled to increase the ability of students to finance their postsecondary education, especially low-income students. In an effort to increase the amount of Pell Grant funds available to students, NAICU has proposed a Pell Plus proposal that would allow all eligible students to have access to their 12 semester Pell Grant amount to incentivize them to graduate in four academic years.
WHO GETS PELL GRANTS?
On December 27, 2020, President Trump signed H.R. 133, the Consolidated Appropriations Act of 2021, into law that housed the FAFSA Simplification Act of 2020. The FAFSA Simplification Act modifies the Pell Grant program and creates a new formula for determining the Pell Grant amount. This bill goes into effect on July 1, 2023.
More specifically, the FAFSA Simplification Act establishes new Pell eligibility guidelines using three variables to determine a student’s eligibility for the total maximum or minimum Pell Grant: (1) income; (2) family size; and (3) family type. While using these variables, a student can receive the following Pell Grant awards.
- Maximum Pell Grant: The maximum Pell Grant will be awarded to a student if they are not required to file a federal income tax return and the student, or the dependent student’s parent, is considered a single parent with an adjusted gross income equal to or less than 225% of the poverty line. If not considered as a single parent, the adjusted gross income must be equal to or less than 175% of the poverty line to qualify for a maximum Pell Grant.
- Minimum Pell Grant: A student shall be eligible for a minimum Pell Grant when the student is enrolled in an eligible program full-time and their adjusted gross income is either equal to or less than (1) 325% or 275% of the poverty line for a dependent student subject family type or (2) 400%, 350%, or 275% of the poverty line for an independent student subject to family type.
- Any Pell Grant Amount: A student can qualify for a Pell Grant if they are enrolled full-time in an eligible program and their Student Aid Index (SAI), formerly known as the Expected Family Contribution, is less than the total maximum Pell Grant amount for that award year. A student is able to receive a maximum Pell Grant award if their SAI is equal to zero or less. If a student is unable to receive a maximum or minimum Pell Grant amount due to their SAI, then the Secretary is required to subtract from their, or their parent(s), adjusted available income (1) any grant or scholarship aid reported on an income tax return and (2) income earned from work through the Federal Work-Study program.
Students are allowed to receive Pell Grants for the summer semesters and the award will become available for incarcerated students for Academic Year 2023-2024.