Congress Votes to End 'Tuition Sensitivity' in Pell Grants

If a bill recently passed by the House of Representatives goes on to become law, the Pell Grant program could become less sensitive – and that would be a good thing for students attending less expensive community and public colleges.

The Pell Grant Equity Act would do away with 'tuition sensitivity' for a one-year period. Tuition sensitivity is a rule that has in effect awarded larger Pell Grants to students attending more expensive colleges and universities.

Under current guidelines, all students are eligible for the first $2,700 of the maximum amount available for a Pell Grant. The tuition sensitivity rule stipulates that 75 per cent of the remaining amount be applied to tuition and only 25 per cent to living expenses. That means that a student at a community college can receive a smaller Pell Grant than a student at an expensive private school does – and that they might be losing out on aid that could help them cover living expenses.

California community college students would particularly benefit from the change. California recently lowered its community college tuition rates by over 20 per cent, bringing the cost of full-time tuition down to $560 per year or less. However, California's high cost-of-living remains a barrier for many low-income students.

To become law, the Pell Grant Equity Act will need to be passed by the Senate and signed by the President. It is widely expected that its one-year moratorium on tuition sensitivity would become permanent.

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