Looming $2.7 billion Pell Grant shortfall poses a new threat for college aid

[BumRushDaShow]

Source: CNBC

Published Sat, Feb 8 2025 10:00 AM EST


College advocates breathed a sigh of relief when the U.S. Department of Education said the Trump Administration’s “federal funding freeze” would not affect federal Pell Grants and student loans.

Nearly 75% of all undergraduates receive some type of financial aid, according to the National Center for Education Statistics. About 40% of college students rely on Pell Grants, a type of federal aid available to low-income families who demonstrate financial need on the Free Application for Federal Student Aid application.

For these students and their families, this aid is crucial for college access.However, there’s a problem brewing. The Congressional Budget Office in January released new supplemental projections for the Pell Grant program, which now estimate a $2.7 billion funding shortfall for the 2025 fiscal year.

“If program funding is not shored up, students could face eligibility or funding cuts for the first time in more than a decade,” said Michele Zampini, senior director of college affordability at The Institute for College Access & Success. “We are back in the danger zone.”

Read more: https://www.cnbc.com/2025/02/08/looming-2point7-billion-pell-grant-shortfall-poses-threat-to-college-aid.html

[SWBTATTReg]

1. Well, maybe colleges can step up, and help these students? God, I can remember when my college costs were not

anything like what they are now...no wonder these kids are having issues. And I suspect that parents and others trying to help these students too are under a crunch too, being that all other living costs are increasing too.

The average cost of college tuition for the 2024-2025 academic year is as follows:
Public four-year in-state: $11,610
Public four-year out-of-state: $30,780
Private colleges: $27,851

[LiberalArkie]

2. That is kind of like hospitals stepping up and helping the patients with their bills out of the goodness of their hearts

[thatdemguy]

3. Colleges need to be responsible for the pricing as well and they abuse pell grants

My ex started school she got the pell grant, her second semester the pell grant went up. The cost of the school went up the exact amount they increased the pell grant by.

Also my best friends daughter is in school, she started off at comm college, every semester her costs also went up by the exact amount the pell grant went up. When she started at UMD and was doing her paperwork they refused to tell her the cost of tuition until they knew the amount of the grant she would get and magically it went up the amount of the pell grant from her first to 2nd year.

It's simple colleges think the person is getting another 1k this year we can increase the cost 1k and the person still pays the same amount but the college gets more.