discussion of the pell grant june 18, 2013 kim cook, ncan
TRANSCRIPT
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
04/19/23 2
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
04/19/23 3
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
04/19/23 4
Pell Grant Recipients:$5550 is current max award
04/19/23 http://media.collegeboard.com/digitalServices/pdf/advocacy/policycenter/advocacy-rethinking-pell-grants-brief.pdf
5
Purchasing Power of Pell
04/19/23 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
04/19/23 7
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
04/19/23 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
04/19/23http://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
04/19/23 10
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
04/19/23 11
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
04/19/23 12
Questions and Contact Information
• Kim Cook• Executive Director• National College Access Network • 202-347-4848• [email protected]
04/19/23 13