In the 2018-19 aid year, Pell grants helped more than 6.8 million students pursue higher education. The Pell grant has been an important part of financial aid packages for low-income students since it was established in 1972. The need-based grant provides support to about one-third of undergraduate students per year.
The Pell grant is usually awarded to undergraduate students who display exceptional financial need and have not earned a bachelor’s, graduate, or professional degree. A Federal Pell Grant, unlike a loan, does not have to be repaid. There are many factors in how much Pell grant funding students will receive, which is determined by the Federal Application for Federal Student Aid (FAFSA). The maximum Pell grant in 2019-2020 was $6,195. However, most students receive smaller grants because they are enrolled part time or because their family incomes and assets reduce their aid eligibility. According to the Collegeboard, in 2018-19, when the maximum Pell grant was $6,095, the average grant was $4,160.
While this grant has provided funding to support students, the “purchasing power” of the Pell grant has declined since its peak in the mid-1970s. In 1975-76, the maximum Pell grant covered more than three-fourths of the average four-year public university cost of attendance, including tuition, fees, and living expenses. In 2019-20, the maximum Pell grant covers about 28 percent of the average four-year public university cost of attendance.
Higher education has been a major conversation over the last few years, from the “student debt crisis” to presidential hopefuls promising free tuition. However, the last time Congress made a substantial investment in the Pell grant program was in 2009-10. There are currently many acts circulating in congress surrounding student financial aid, including reforming the Higher Education Act and/or implementing the College Affordability Act. In addition to these, there are Pell Grant-specific acts, including two submitted last month, including one to increase the Pell grant to match inflation (H.R.4639 – Pell Grant Sustainability Act) and another to allow institutions to provide Pell grant bonuses to juniors and seniors on track to graduate in four years (H.R.4608 – Pell Plus Act of 2019).
While there are additional factors to keep the Pell grant successful, such as simplified FAFSA and other factors being considered by Congress, the most important is continuing to ensure funding is available to students and families.
Sources:
Pell Grant loses its punch against the rising cost of college
Legislative Tracker: Pell Grants
#Thankful4Pell Action Center
Pell grants: recipients, maximum Pell and average Pell