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Yahoo
4 days ago
- Business
- Yahoo
GOP plan could raise credit requirements for Pell Grant recipients
WASHINGTON (NEXSTAR) — A Republican-backed proposal could bring major changes to the Pell Grant program, requiring many college students to take on heavier course loads to qualify for federal aid. Under the legislation, full-time students would need to enroll in at least 30 credit hours per year, up from the current 24, to remain eligible. Part-time students would see their requirement increase from 12 to at least 15 credit hours annually. 'It's a goal to get more students to go full time, graduate more quickly, and I think it will help some students get there,' said Robert Kelchen, an Education Professor at the University of Tennessee, Knoxville. But Kelchen also cautioned that many students might struggle to meet the new demands. 'About two-thirds of students work, and many of them are working close to full time,' he said. 'Some are balancing full-time school and full-time work. Others are taking one or two classes while working 40 hours a week and caring for their families.' Pell Grants were established by Congress in 1972 to help low-income students access higher education. Today, about 40% of U.S. college students receive the grant, which does not need to be repaid. The federal government spent approximately $31.47 billion on the program during the last academic year. Critics of the proposal, including the NAACP, warn it could disproportionately harm students of color and roll back recent gains in college access. 'What we're seeing is a really aggressive and swift attack,' said Wisdom Cole, the NAACP's National Director of Youth and College. 'About 75% of graduates from Historically Black Colleges and Universities (HBCUs) are Pell Grant recipients. Those are the students who will be hit the hardest.' Supporters argue the changes are necessary to ensure accountability. Madison Marino, a Higher Education Policy Expert at the conservative Heritage Foundation, cited data showing that only about 53% of Pell Grant recipients complete a degree — significantly lower than the 70% to 73% completion rate for their peers. 'I think it will make students re-evaluate what educational pathways are available to them,' Marino said. 'Does a traditional four-year college fit me?' The proposal, which also redirects more financial aid toward workforce training programs, passed the House last week and is now awaiting action in the Senate. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
27-05-2025
- Business
- Yahoo
How will Trump's tariff policies impact college students?
This story was originally published on Higher Ed Dive. To receive daily news and insights, subscribe to our free daily Higher Ed Dive newsletter. New tariffs could make the high cost of attending college even steeper by increasing the likelihood prices on essential items such as computers, food, clothing, housing and transportation will rise. Increased costs associated with tariffs — the kind the Trump administration has imposed on imports from most foreign countries — would disproportionately affect low-income and commuter students, experts say. They warn that potential price hikes could even cause some students to struggle in class or to attain their degrees. 'The students who are most affected by increased cost of daily goods are the very students for whom college costs are unaffordable in the first place,' said Mark Huelsman, director of policy and advocacy at The Hope Center for Student Basic Needs at Temple University. 'Adding additional costs onto budgets that are already stretched beyond the breaking point will simply worsen what has long been a crisis of affordability.' On April 2, President Donald Trump implemented across-the-board 10% tariffs, though he imposed steeper rates for key trading partners, including China and the European Union. Days later, he abruptly paused the higher tariffs for 90 days following a sell-off of U.S. Treasury bonds, steep stock market declines and warnings of a recession by economists. However, the president kept the baseline rate of 10% in effect and imposed a 145% rate on China. Since then, Trump has exempted many electronics from the tariffs — at least temporarily — and negotiated with some countries. Most recently, China and the U.S. agreed to lower tariffs on Chinese imports to 30% while they continue negotiations. Some colleges could help students mitigate potential price hikes, such as providing them with additional financial aid or emergency assistance, experts say. Many colleges, however, could face cost increases of their own. And while strategies like providing additional financial assistance to students could help 'around the edges,' it won't 'meet the full amount of needs for students,' said Robert Kelchen, an education professor at the University of Tennessee, Knoxville. In the end, the tariffs could force students to spend thousands of dollars extra to attend college, said Kelchen. 'It's just going to be a rough time going ahead,' he said. It's still unclear how Trump's tariff policies will impact the cost of certain products. But the electronics that students need to do coursework and attend virtual classes — such laptops, headphones, chargers and smartphones — often run through China and don't have strong supply chains in the U.S. or non-tariffed countries. That creates 'uncertainty about if you can get the supplies that you need at a reasonable price,' said Kelchen. Many students already struggle to afford other essential items, such as food and clothing, which could also be susceptible to price spikes due to tariffs, said Huelsman. That could impact students' 'basic needs insecurity,' he added. Low-income students and those from underserved communities would likely be affected the most by increases on essential items, said Huelsman. Over half of Pell Grant recipients reported experiencing food insecurity in the past 30 days, compared to just 35% of non-Pell recipients, according to the Hope Center's most recent basic needs survey, which was conducted in spring 2023 and summer 2024. The cost of renting a home could also increase for students living off-campus, as tariffs on Canadian lumber could make building or fixing up affordable housing more expensive, Kelchen said. Tariffs on Canadian lumber stand around 14.5%, but they could double later this year. Meanwhile, 59% of Pell recipients and 43% of non–Pell students experienced housing insecurity, the Hope Center survey found. Commuter students and those attending community college could be especially impacted by increased car or auto parts prices, said Huelsman. The Hope Center's survey found that 12% of students reported missing class or work during a single academic term due to transportation issues. Even higher transportation costs could 'render students without the ability to get to class,' Huelsman said. 'We worry about those dynamics impacting student success.' Increased tariff costs won't stop colleges from offering meal plans and maintaining their residence halls and facilities, Kelchen said. But it could mean higher costs for on-campus students moving forward as colleges try to break even on housing and dining expenses, he said. 'They face the same rising costs as students, and they may not have the money to just absorb them,' Kelchen said. 'In that case, that will get passed onto students.' If the tariffs tip the U.S. into a recession, as many economists fear, it could make matters worse. During the Great Recession, states cut funding for public institutions. If that happened again, it could result in mid-year tuition price increases, said Kelchen. Such cost increases could 'catch students unprepared,' said Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators. If students don't have a way to cover cost increases, they may take a lighter course load or stop out of college altogether, she said. Kelchen predicted that the former is more likely. 'What we might see here is students staying enrolled, but maybe taking fewer credits in an attempt to try and make things more affordable,' Kelchen said. He also noted enrollment typically increases during economic challenges because many people turn to higher education when they can't find a job, he noted. When students struggle to afford daily necessities, particularly food, it can impact their grades, mental health and ability to persist through college, said Huelsman. Colleges can allow students to qualify for additional federal and institutional financial aid by considering their 'special circumstances' — events affecting their ability to afford attending, such as recent unemployment, illness or the death of a family member — said Desjean. Colleges could also use emergency financial aid programs to help students impacted by higher costs, she said, adding that many higher ed institutions provided emergency student aid during the COVID-19 pandemic using federal relief dollars and their own funding programs. However, there's 'not always enough financial aid to fill students' needs,' Desjean said. Fundraising for money that goes toward students' basic needs can be 'somewhat helpful,' said Kelchen. But most colleges don't have the resources needed to do that work, he said. And well-resourced public flagships and private universities are dealing with their own financial crises due to vast federal research funding cuts, he said. Colleges should help students access public and other financial resources that can help defray the rising costs of attendance and unexpected expenses, such as federal food assistance, child care subsidies, housing supports and technology, such as wireless hotspots, said Huelsman. That assistance is critical for students, who often need to overcome 'several extra hoops' to be eligible for the same federal aid programs as those who aren't enrolled in higher ed, he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
