{"id":62619,"date":"2022-04-29T04:56:34","date_gmt":"2022-04-29T08:56:34","guid":{"rendered":"https:\/\/world.edu\/?p=62619"},"modified":"2022-04-29T16:28:26","modified_gmt":"2022-04-29T20:28:26","slug":"despite-400-boost-pell-grants-fall-far-short-of-original-goal-to-make-college-more-affordable-for-low-and-middle-income-students","status":"publish","type":"post","link":"https:\/\/world.edu\/despite-400-boost-pell-grants-fall-far-short-of-original-goal-to-make-college-more-affordable-for-low-and-middle-income-students\/","title":{"rendered":"Despite $400 boost, Pell Grants fall far short of original goal to make college more affordable for low- and middle-income students"},"content":{"rendered":"

\"\"<\/p>\n

Back around when the Pell Grant was\u00a0created by Congress in 1973<\/a>\u00a0to help students from low-income families pay for higher education, it\u00a0covered 80% of the costs<\/a>\u00a0of attending a public four-year college or university. And it covered over 40% of the costs of going to a private one.<\/p>\n

Today, thanks to\u00a0increases in tuition costs<\/a>\u00a0and Pell Grants not keeping pace, they cover less than 30% of the costs at a public university and less than 20% of the costs at private institutions, according an analysis I conducted using College Board data.<\/p>\n

The Pell Grant no longer covers the bulk of college costs<\/span><\/strong><\/h4>\n

Since 1975 the purchasing power of the Pell Grant has gradually declined for both public and private colleges.<\/span><\/p>\n

\"\"<\/p>\n

With that history in mind, President Joe Biden\u2019s budget, which\u00a0increases the maximum Pell Grant by $400<\/a> \u2013 from $6,495 to $6,895 \u2013 for the 2022-2023 school year, should boost the purchasing power of the grant. But it still falls short of restoring that purchasing power to where it was when the Pell Grant was created nearly 50 years ago, a goal for which many in higher education have advocated.<\/p>\n

I make this observation as a veteran university administrator and as a\u00a0researcher<\/a>\u00a0who has spent the last 25 years studying what factors enable students to enroll in college and get a degree.<\/p>\n

Pell Grants yesterday and today<\/strong><\/h4>\n

Over $26 million in\u00a0Pell Grants<\/a>\u00a0were awarded to approximately 6.2 million students in the 2020-2021 school year, with the average recipient receiving just over $4,200.<\/p>\n

The grants, originally called\u00a0Basic Educational Opportunity Grants<\/a>, were\u00a0renamed in 1980<\/a>\u00a0after the late U.S. Senator\u00a0Claiborne Pell<\/a>, a Democrat from Rhode Island and an early champion of the grant.<\/p>\n

In line with the goals of the\u00a0Higher Education Act<\/a>, which was originally passed in 1965, the grants were designed to be the foundation of college funding for students from poor- and moderate-income families. They were also meant to be a mechanism to help eliminate the gap in the rates at which these students attend college and graduate in relation to their peers from wealthier families.<\/p>\n

The idea was that with a Pell Grant, a student could afford to pay the major components of the cost of attendance at a public four-year institution without having to borrow a lot of money or work a lot of hours at a job, particularly off campus.<\/p>\n

For students at private colleges, Pell Grants would cover a substantial amount of their education costs, too, but not to the same extent as public colleges, which typically cost less to attend.<\/p>\n

Losing purchasing power<\/strong><\/h4>\n

As tuition prices have increased, the size of Pell Grants \u2013 which are subject to approval from Congress \u2013 has not kept pace, causing their purchasing power to decline.<\/p>\n

This erosion of the value of a Pell Grant has affected college access in a number of ways. Poorer students have become\u00a0more reliant on loans<\/a>\u00a0to finance their education, as Pell covers less of the costs.<\/p>\n

These poorer students are also more likely to be\u00a0enrolled in a community college<\/a>\u00a0because of the lower prices in two-year colleges. The post-graduation job prospects of a student with a community college degree are\u00a0not as good<\/a>\u00a0as they are for one who graduates with a bachelor\u2019s degree, studies have shown. And the labor market returns to a community college degree are\u00a0lower<\/a>\u00a0than those of bachelor\u2019s degrees.<\/p>\n

Pell Grants have helped close the college access gap. While low-income students\u00a0almost doubled the rate<\/a>\u00a0at which they enrolled in college after graduating from high school \u2013 from 35% in 1975 to 67% in 2016 \u2013 high-income students also increased their college-going rate.<\/p>\n

College enrollment rates vary by income levels<\/strong>
\n<\/span><\/h4>\n

Compared to high-income students, there are fewer percentages of low- and middle-income students enrolled in college.<\/span><\/p>\n

\"\"<\/p>\n

While the poorest students have achieved parity with their middle-income peers, both groups still lag behind the college attendance rates of students from wealthier families. So while Pell Grants have helped close some of the gap, students from higher-income families still attend college at a rate\u00a016 percentage points<\/a>\u00a0more than poor students.<\/p>\n

Increasing the Pell Grant\u2019s power<\/strong><\/h4>\n

The $400 increase in the Pell Grant maximum is the largest since the\u00a0$619 increase in 2009<\/a>. However, with the price of college continuing to grow, this increase will bring the purchasing power of Pell to just over\u00a030%<\/a>\u00a0of the cost of attending college. This is a small step in the right direction, but not nearly enough to help students from moderate-income families.<\/p>\n

Many higher education organizations, including the\u00a0American Council on Education<\/a>, the\u00a0National Association of Student Financial Aid Administators<\/a>\u00a0and the\u00a0National Association of Independent Colleges and Universities<\/a>, have called for doubling the Pell Grant. This would be an important step toward having Pell Grants cover as much for today\u2019s students as they did a generation or two ago.<\/p>\n

Data from The College Board<\/a>\u00a0demonstrates that a $13,000 Pell Grant \u2013 roughly double this year\u2019s maximum of $6,495 \u2013 would provide 57% of the college costs at a public institution. However, this is still well below what it covered in the 1970s. Without increased support, poorer students will continue to lag their wealthier peers in achieving the American dream of a college education.<\/p>\n

Author Bio:<\/strong> Donald E. Heller is Provost and Vice President of Academic Affairs at the University of San Francisco<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Back around when the Pell Grant was\u00a0created by Congress in 1973\u00a0to help students from low-income families pay for higher education, it\u00a0covered 80% of the costs\u00a0of attending a public four-year college or university. And it covered over 40% of the costs of going to a private one. Today, thanks to\u00a0increases in tuition costs\u00a0and Pell Grants not […]\n… learn more→<\/a><\/p>","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[12949],"coauthors":[11733],"class_list":["post-62619","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-pell-grants-2"],"acf":[],"yoast_head":"\nDespite $400 boost, Pell Grants fall far short of original goal to make college more affordable for low- and middle-income students - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/despite-400-boost-pell-grants-fall-far-short-of-original-goal-to-make-college-more-affordable-for-low-and-middle-income-students\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Despite $400 boost, Pell Grants fall far short of original goal to make college more affordable for low- and middle-income students - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"Back around when the Pell Grant was\u00a0created by Congress in 1973\u00a0to help students from low-income families pay for higher education, it\u00a0covered 80% of the costs\u00a0of attending a public four-year college or university. 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