Discussion of the Pell Grant June 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 8/9/20152

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 8/9/20153

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 % considered independent 8/9/20154

Pell Grant Recipients: $5550 is current max award 8/9/ cacy-rethinking-pell-grants-brief.pdf 5

Purchasing Power of Pell 8/9/

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 8/9/20157

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 8/9/

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 8/9/ y_time_long_term_fix_still_needed

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 8/9/201510

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 8/9/201511

What Can You Do? Make sure you students fill out the FAFSA View the completion percentage here: center/student/application-volume/fafsa- completion-high-school center/student/application-volume/fafsa- completion-high-school Provide feedback to the Department of Education through Affinity Group 8/9/201512

Questions and Contact Information Kim Cook Executive Director National College Access Network /9/201513