"The National Association of Student Financial Aid Administrators (NASFAA), strong proponents of Pell grants, released a brief that shows the impact of that federal aid and the potential benefits of doubling the maximum award for individuals to $13,000," University Business reports.
... "While that goal is included in President Joe Biden’s 2023 fiscal year budget, the threshold wouldn’t be achieved until 2029, instead incrementally gaining ground each year. If approved as is, maximum Pell grant awards would rise by $1,775 to $8,670 for the 2023-24 academic year. With inflation forcing tuition rises at some institutions, including four-year publics that are short on funding from their states, NASFAA officials said it imperative that more be done to help students in need."
'"In addition to being outpaced by inflation, the maximum Pell Grant amount has failed to keep pace with increases in college costs,' the NASFAA report states. 'The 2020-21 maximum Pell Grant of $6,495 covered only 26% of the average cost of attendance at a public four-year institution, while the maximum grant in 1975-76 covered more than three-quarters of the cost of attending a public four-year institution.'"
"Importantly, as NASFAA points out, 'doubling the maximum Pell Grant would also expand the expected family contribution range that qualifies students for Pell, in turn extending eligibility to some additional, moderate-income students who do not currently qualify for the grant.'"
"'One of the most urgent ways we can decrease reliance on student loans is to dramatically increase investments in the federal Pell Grant program,' said Justin Draeger, president and CEO at NASFAA. 'If even a fraction of the amount being spent on debt forgiveness were spent on upfront grants like Pell, many low- and middle-income students would borrow much less.'"
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 9/8/2022