Delayed vote on Pell Grant increase could disrupt college financial aid offers

Published on
January 21, 2022

(Excerpts from The Washington Post)

  • For many students, the grants and scholarships they receive determine which college they attend or whether higher education is even within reach. But college and universities will have a tough time this year giving admitted students a clear, timely picture of their financial aid award.
  • With the 2022 federal budget delayed in Congress, lawmakers are still debating a $400 increase in the Pell Grant that would boost the maximum award for the 2022-23 academic year to $6,895. Even if a deal is reached before the current agreement to fund the government expires Feb. 18, the update will take time to process.
  • Although congressional budget delays have routinely disrupted financial aid offers, aid experts say the stakes are higher now, as college enrollment is waning at schools serving students with the greatest financial need.
  • Portland State is indicating in its award offers that Pell funding is subject to change once a federal budget is in place. The federal funding could also affect how the school calculates aid in its Four Years Free program, which covers tuition for Pell-eligible Oregon residents. The more Pell dollars a recipient receives, the fewer institutional dollars are contributed toward tuition.