Bill Overview
Title: AID Act
Description: This bill revises certain federal student-aid programs. Among other changes, the bill expands access to Pell Grants, expands loan counseling requirements, revises the Federal Work-Study Program, updates the Free Application for Federal Student Aid (FAFSA) process, and extends Supplemental Nutrition Assistance Program (SNAP) benefits to certain students. The bill expands access to Pell Grants by (1) increasing the maximum award and indexing it for inflation; (2) increasing the semester eligibility limit to 15 semesters; (3) extending eligibility to certain short-term workforce training programs; (4) excluding from gross income, for income tax purposes, any amount received as a Pell Grant; and (5) allowing Pell Grants to be used for living and non-tuition expenses. The bill revises student loan counseling requirements applicable to institutions of higher education (IHEs) by requiring annual financial counseling and expanding exit counseling. Additionally, the bill permanently reauthorizes the Federal Work-Study Program and otherwise revises the program, including by allocating program funds to IHEs based on the amount of Pell Grant funds received by each IHE. It establishes a pilot program that provides work-based learning opportunities for students who demonstrate exceptional financial need. The bill requires the Department of Education (ED) to allow students to complete FAFSA as independent students under special circumstances. Further, the bill prohibits ED from asking about drug-related convictions on FAFSA. The bill also allows certain students, including those who have an expected family contribution of zero, to qualify for SNAP benefits.
Sponsors: Rep. DeFazio, Peter A. [D-OR-4]
Target Audience
Population: Current and prospective higher education students
Estimated Size: 19700000
- This bill expands access to Pell Grants, which directly impacts current and prospective college students who may qualify for these grants.
- The changes to student loan counseling and FAFSA will affect students currently or planning to attend colleges or universities, impacting their borrowing process and financial aid applications.
- Revisions to the Federal Work-Study Program will have an impact on students participating in this program, particularly those with significant financial need.
- The extension of SNAP benefits to certain students will affect those who are currently in financial need or have an expected family contribution of zero, allowing them access to additional food assistance.
- According to National Center for Education Statistics, there are millions of students enrolled in higher education in the U.S. each year, many of whom could benefit from these changes.
- Globally, any international students in the U.S. who are eligible for Pell Grants or participating in U.S. federal aid programs or institutions would also be impacted, though the primary impact is on U.S. citizens.
Reasoning
- The policy targets current and prospective college students, particularly those from low-income backgrounds who benefit from Pell Grants and need-based programs like SNAP.
- The American higher education system encompasses diverse student populations, including community college students, undergraduates, and international students on federal aid programs.
- Given the budget constraints, the policy aims to offer expanded resources without overcommitting financially, impacting only as many students as the allocated budget allows each year.
- Our simulation should consider various scenarios reflecting different levels of direct benefit from the policy changes, from increased financial support to indirect advantages like enhanced counseling.
- Approximately 19.7 million students are eligible under the policy. The policy's financial structure specifies a year-on-year investment that suggests gradual but sustained uptake across eligible students.
- Students in community colleges and those in need of financial support, such as those with zero family contribution, are likely to see the highest direct impact due to expanded Pell Grants and SNAP eligibility.
Simulated Interviews
Full-time student (Los Angeles, CA)
Age: 20 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 18/20
Statement of Opinion:
- This policy could help me a lot by providing more money to cover my living expenses, not just tuition.
- I'm glad they are also considering expanding SNAP benefits, as it would help me afford meals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Part-time student, part-time barista (Austin, TX)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm excited about the Pell Grant expansion; it means I might have less student debt when I graduate.
- The additional loan counseling is helpful, as I've had trouble understanding student loans in the past.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Returning student (New York, NY)
Age: 45 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I appreciate that the policy focuses on independent students like me who've faced financial hardship before.
- Being able to apply for Pell Grants without worrying about past drug convictions is a relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
International student (Chicago, IL)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The biggest change for me is understanding the financial system better through improved counseling.
- Though I'm an international student, the Pell Grant benefits won't directly impact me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
High school senior (Rural Kansas)
Age: 18 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- I haven't gone to college yet, but this policy makes it feel more achievable financially.
- Knowing more about financial aid options means I can prepare better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 8 |
Single parent student (Miami, FL)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This bill supporting short-term programs and SNAP is a big help for single parents like me.
- It could mean I complete my education without getting into debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Full-time university student (Seattle, WA)
Age: 19 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- I think the work-study changes will favor students like me who depend on it for our living expenses.
- Expanded Pell Grants will reduce the need to work long hours and focus more on study.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Graduate student (Boston, MA)
Age: 23 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- More of us can apply for Pell Grants for non-traditional programs, that's a game changer for part-time students.
- The focus on comprehensive loan counseling helps me better understand my debt situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Adjunct professor pursuing a Ph.D. (Cleveland, OH)
Age: 33 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Although Pell Grants don't apply to Ph.D. programs, changes in loan counseling are beneficial.
- Better understanding of exactly what my repayments look like could prevent future defaults.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Recently graduated, looking for work (Denver, CO)
Age: 26 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I'm hoping for forgiveness or restructure of loans as I search for work, but it seems this isn't addressed.
- Application changes don’t benefit me directly since I’ve graduated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 3 |
| Year 2 | 3 | 3 |
| Year 3 | 3 | 3 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $1500000000 (Low: $1200000000, High: $1800000000)
Year 2: $1550000000 (Low: $1250000000, High: $1850000000)
Year 3: $1600000000 (Low: $1300000000, High: $1900000000)
Year 5: $1700000000 (Low: $1400000000, High: $2000000000)
Year 10: $2000000000 (Low: $1700000000, High: $2300000000)
Year 100: $2500000000 (Low: $2100000000, High: $2900000000)
Key Considerations
- The expansion of Pell Grants will require additional federal funding, potentially affecting the federal budget allocation process.
- The inclusion of students in SNAP benefits could face logistical challenges in determining eligibility and coordinating between education and social services.
- The reauthorization and expansion of federal programs require continuous monitoring to ensure intended beneficiaries are effectively served without unnecessary bureaucratic overhead.