Pell Grant Proposals

Who Gets Hurt the Most by the Proposed Pell Changes?

The proposed changes to Pell Grant funding and eligibility are not felt evenly across higher education—they strike hardest at the students with the fewest options and the highest barriers. These are students for whom the Pell Grant isn’t just financial aid—it’s their only path to college.

Community College Students

Community college students make up the majority of Pell recipients, and they would be among the most severely impacted. Nearly 80% of community college students work, and 38% work full-time. Many are also parents or caregivers. These realities mean they often enroll part-time—not because they lack ambition, but because they are balancing school with jobs, children, and other responsibilities.

Under the proposed House plan, full-time status would be redefined as 30 credits per year, and students taking fewer than 7.5 credits per term would lose Pell eligibility entirely. That seemingly small policy shift would make over 400,000 community college students ineligible for Pell each year—students who are already living on tight margins.

These are not hypothetical numbers. Without Pell, many of these students will have no other option but to stop out. Community colleges warn that the ripple effect will be devastating: lost enrollment could mean shuttered programs, closed buildings, staff layoffs, and a complete reshaping of the community college mission.

Supporters of the proposal argue that requiring more credits will improve graduation rates. But this overlooks the lives of real students. For many, "student" is just one role—they’re also parents, caretakers, and essential workers. Forcing them to take more classes to qualify for Pell ignores that complexity. This policy was built around an outdated idea of who college students are today—and it's setting them up to fail.

Historically Black Colleges and Universities (HBCUs)

HBCUs are also heavily reliant on Pell Grants: 75% of students at HBCUs receive Pell, and at some institutions, that number exceeds 96%. These proposed changes, combined with broader federal budget threats like “Project 2025,” could destabilize entire campuses.

We’ve already seen how fragile the system can be. A temporary 48-hour freeze on federal loans earlier this year sent some HBCUs into crisis. One administrator described it as a potential “death certificate” for their college. The stakes are that high. Cuts to Pell, or any disruption in its delivery, threaten not just access—but institutional survival.

Incarcerated Students

The proposal to cut off Pell Grants for students taking fewer than 7.5 credits per term would silently dismantle access to education for incarcerated learners.

Prison education programs are highly structured and often limited by staffing, security, and facility constraints. Students typically take just 1–2 classes at a time. These are not choices—they’re logistical realities. Under the proposed rule, virtually every incarcerated student would become ineligible for Pell, just as Second Chance Pell was starting to open new opportunities.

Stripping Pell from these students would reverse recent bipartisan progress and undermine efforts to reduce recidivism, support rehabilitation, and provide second chances.

Even Now, Community Colleges Are Shortchanged

Even under current rules, the Pell formula shortchanges community colleges. These institutions enroll 41% of all undergraduates but receive only 29.2% of total Pell Grant dollars. The average award for community college students is the lowest across all sectors, at just $4,149. That’s despite the fact that their students are often the most in need.

Any further cuts or eligibility restrictions don’t just reduce access—they deepen long-standing inequities.