Committee on Education and Labor : U.S. House of Representatives

Press Releases

House Passes Pell Grant Fairness Legislation

Tuesday, February 27, 2007

 

WASHINGTON, DC -- The U.S. House of Representatives approved legislation today that would repeal a rule that unfairly reduces Pell Grant scholarship aid for thousands of low-income college students who attend low-cost colleges and universities. The Pell Grant Equity Act, H.R. 990, was introduced by Reps. George Miller (D-CA), the Chairman of the House Education and Labor Committee, and Howard "Buck" McKeon (R-CA), the Committee's Senior Republican.

"No student should be shortchanged of the financial aid they need to get a college degree," said Miller. "This legislation will ensure that students get the help they need to cover tuition and other basic - but substantial - costs. This is another step we are taking to expand need-based aid and make college more affordable - a core element of strengthening our nation's middle class."

"No student should be penalized simply because of his or her choice of where to get an education," McKeon noted.  "As we work to expand college access and hold institutions more accountable for their role in the college costs crisis, punishing students who attend low cost schools is neither fair nor rational.  I'm pleased we were able to work in a bipartisan way to reform this outdated federal rule."

Under current law, a provision called "tuition sensitivity" limits the amount of Pell Grant aid eligible students receive annually based on their tuition costs - keeping students who otherwise qualify for a maximum Pell Grant scholarship from receiving the full sum.

While the Pell Grant scholarship can cover a student's cost of attendance, which is the total sum of tuition and fees as well as books, supplies, transportation, room and board and miscellaneous personal expenses, tuition sensitivity is based on a premise that tuition is the major educational expense facing students, and should therefore determine grant need.

In reality, for most students, these related education and living expenses often present the greatest financial barriers to attending college. At California's community colleges, where tuition was recently reduced, the tuition sensitivity rule hits students especially hard. The Pell Grant Equity Act would eliminate this provision and restore fairness to the Pell Grant award process - boosting need-based aid for students in the most financial need.

According to the Congressional Research Service, the Pell Grant Equity Act would benefit approximately 96,000 students in the 2007-2008 academic year, and would provide an average Pell Grant scholarship increase of $108 per student. The bill will provide a one-year fix in order to offer affected students immediate relief. Miller and McKeon said today that the fix will be made permanent when the Education and Labor Committee reauthorizes the Higher Education Act. More than 5 million undergraduate students received a Pell Grant scholarship in FY 2006. Of these recipients, more than 74 percent have incomes below $30,000.

For more information on the Pell Grant Equity Act, click here.


FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853