A college degree is practically a necessity these days, not only for the individual student, but for the economic and social health of the country. But as states cut budgets, and grant aid has diminished, students are relying on loans to pay for college.
Students continue to be financially impacted by the COVID-19 pandemic – and need more help to meet their immediate basic needs. The Pell Grant program is the foundation of college aid for over 7 million students annually, including nearly 60 percent of Black students and nearly half of Hispanic students.
We know that Congress can help the growing number of students with greater financial need by reinvesting in the Pell Grant financial aid program.
It has not always been this way. Twelve years ago only one-third of college graduates from four year public colleges needed to borrow money to attain a college degree and graduates who borrowed carried around $12,000 of debt on average. Today more than two-thirds of graduates have federal student loan debt and carry over $23,000 on average. The percentage of students with $25,000 worth of private student loan debt has increased, from 5% in 1996 to 24% in 2008.
A college degree must remain within reach for families of modest means, and affordable over the long term for the borrowers and parents in repayment. We work to increase student grant aid, make debt levels more manageable, and protect students as consumers from practices that contribute to educational debt.
We need robust grant programs on a state and federal level, a simpler system of student aid that actively encourages student and parental participation, and stronger safeguards for student borrowers in repayment.
Also, we can lower student debt by protecting student consumers. College students pay unjustifiably high amounts for college textbooks each year. And those who rely on credit and debit cards to help offset day to day costs of education, or to access their financial aid disbursements, can get slapped with penalty fees and terms that take advantage of them.
In 2018 Congress proposed a $2.6 billion cut to the Pell Grant funding, which would have greatly hurt low-income students who rely on the Pell Grant to attend and complete college. In response to our #PellRaiser campaign, not a single dollar was taken from the program. Congress also increased the maximum award to more than six thousand dollars.