Bill Overview
Title: Pell Grant Sustainability Act
Description: This bill requires the Department of Education to calculate the maximum award amount for Pell Grants for award year 2022-2023 and each subsequent award year by indexing the award amount to the rate of inflation.
Sponsors: Rep. Casten, Sean [D-IL-6]
Target Audience
Population: Students reliant on Pell Grants in the United States
Estimated Size: 7000000
- The Pell Grant is a form of financial aid provided by the U.S. federal government to students who need it to pay for college.
- The primary beneficiaries of Pell Grants are low-income undergraduate students in the United States.
- Each year, millions of students in the U.S. apply for and receive Pell Grants as part of their financial aid packages.
- Indexing the Pell Grant maximum award amount to inflation means that students will potentially receive more financial aid in real terms, maintaining the purchasing power of the grant.
- This bill will primarily impact current and future college students who rely on Pell Grants for their education funding.
Reasoning
- The Pell Grant Sustainability Act will have a direct impact on low-income students who rely on Pell Grants to fund their education. By indexing the grant amount to inflation, these students can maintain their purchasing power over time, which could reduce financial stress and improve college affordability.
- The policy's budget is constrained, which means it must be distributed efficiently among the 7 million estimated U.S. recipients. However, not all grant recipients may experience significant changes in their financial situation, depending on the inflation rate and other financial supports available.
- Cost of living varies across different states and urban vs. rural settings, which can affect how beneficial the adjusted grants are in practice. We should expect variations in impact depending on these factors.
- Since well-being is influenced by multiple factors, not just financial aid, our interviews should consider the holistic context of each student's life.
Simulated Interviews
Undergraduate Student (New York, NY)
Age: 19 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- Receiving more financial aid would allow me to reduce my working hours and focus more on my studies.
- The Pell Grant barely covers my tuition and fees, so an increase that keeps up with inflation is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Undergraduate Student (Chicago, IL)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 18/20
Statement of Opinion:
- Adjusting the Pell Grant for inflation will be a lifesaver. I can support my family and better handle my own expenses without compromising my education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Undergraduate Student (Rural Alabama)
Age: 20 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Even a small increase in the Pell Grant will be significant for my ability to afford transportation to and from campus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Graduate Student (Los Angeles, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- Inflation adjustments are useful, but I wish they extended to graduate studies too.
- Most impacts will be seen in terms of reduced financial strain, lessening the need for loans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Returning Student (Austin, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Increased support via Pell Grants helps adults like me who return to education while managing a family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Undergraduate Student (Seattle, WA)
Age: 21 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 14/20
Statement of Opinion:
- By aligning Pell Grants with inflation, my stress about rising education costs can be alleviated at least partially.
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 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 9 |
Undergraduate Student (Phoenix, AZ)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 16/20
Statement of Opinion:
- Pell Grant adjustments mean I can allocate more of my part-time income towards necessity rather than debt.
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 | 8 |
| Year 20 | 9 | 8 |
Undergraduate Student (Miami, FL)
Age: 18 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 17/20
Statement of Opinion:
- I'm glad this policy is in place; more financial support means I won't have to rely as much on my parents.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Undergraduate Student (Rural Kansas)
Age: 23 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- Aligning the Pell Grant with inflation is a fantastic initiative, providing more reliable planning for my family and education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Graduate Student (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- Although I won't benefit now, it's crucial that future students have grants that match living costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $210000000 (Low: $200000000, High: $220000000)
Year 2: $215000000 (Low: $205000000, High: $225000000)
Year 3: $220000000 (Low: $210000000, High: $230000000)
Year 5: $230000000 (Low: $220000000, High: $240000000)
Year 10: $250000000 (Low: $240000000, High: $260000000)
Year 100: $450000000 (Low: $430000000, High: $470000000)
Key Considerations
- Impact on federal budget deficit.
- How different inflation scenarios might affect cost estimates.
- Potential pushback or support based on population benefiting from Pell Grants.
- Changing education costs beyond inflation might demand further adjustments to the program.
- How increasing Pell Grants correlates with overall educational attainment.