Pell Grants Vital to Ensuring Access to Higher Education Opportunities

New AACC Policy Brief Contextualizes Debate on Future of Popular Federal Financial Aid Program

WASHINGTON, July 27, 2011 /PRNewswire-USNewswire/ -- Amid growing debate among lawmakers about the future of the popular federal Pell Grant student financial aid program, a new policy brief from the American Association of Community Colleges (AACC), offers context to guide the dialogue and impact of proposed changes.

As Congress and the White House showdown over the budget crisis, policymakers are considering deep cuts and restructuring for the $35 billion dollar Pell Grant program. "Promoting Educational Opportunity: The Pell Grant Program at Community Colleges" offers insight into how Pell Grants impact students attending some of the nation's most diverse and affordable colleges – community colleges.

For thousands of students seeking to better themselves, the Pell Grant is a lifeline. Nearly 80% of Pell Grant recipients attending community colleges in 2009-2010 had family incomes of less than 150% of the federal poverty threshold, and 60.7% were below the poverty threshold for a family of four ($20,000).

Even at the modest tuition prices that community colleges charge, Pell Grants do not fully fund a student's education. The typical $5,550 Pell Grant received by a community college student in 2010–2011 accounted for just 28.9% of a student's estimated total budget for 9 months of education. In 2009–2010, 91.9% of Pell Grant recipients at community colleges had allowable costs for their education in excess of $9,000.

Students receiving Pell Grants are more likely to enroll in college full-time and not work while they are in school, which contributes to higher graduation rates. Only 40% of all community college students enroll full time, but nearly double that percentage of community college students receiving a Pell Grant were enrolled full time in 2009–2010.

The impact of Pell Grants on community colleges is significant. In 2010–2011, community colleges served 37% of all Pell recipients - the most served by any sector of higher education - while receiving 33% of total program expenditures.

The Pell Grant program has expanded exponentially in recent years. At public 2-year institutions, there was a 21% increase in the number of Pell recipients from 2009-10 to 2010-11.  This compares to a 17% increase in total program recipients over the same time period. 

The dramatic rise in the number of students qualifying for Pell Grants is no surprise to community college leaders. "We've seen a dramatic surge in enrollments throughout the community college system due to the economic recession," said Dr. Walter G. Bumphus, president and CEO of AACC. "More people are turning to community colleges to help them keep their dreams of higher education alive, and they need funding to stay in school and earn the credentials needed for the workplace."

"Discussions on Capitol Hill about changes to the Pell Grant program should factor into them the real lives and people who could be impacted. The Pell Grant program has historically been a vital support for many seeking to better themselves," said Bumphus. "In the words of the late Senator Clairborne Pell, 'no student with talent, drive, and desire should be denied the opportunity for a post-secondary education.' I hope we have not lost our commitment to that vision."

The full policy brief is available on the AACC website at www.aacc.nche.edu. The brief was funded in part by Lumina Foundation (www.luminafoundation.org).

Headquartered in Washington, D.C., the American Association of Community Colleges is the leading advocacy organization representing close to 1,200 community, junior and technical colleges nationwide. Community colleges are the largest sector of higher education, enrolling 12.4 million credit and non-credit students each year. To learn more about the AACC, visit www.aacc.nche.edu.

Lumina Foundation, an Indianapolis-based private foundation, is committed to enrolling and graduating more students from college—especially 21^st century students: low-income students, students of color, first-generation students and adult learners.  Lumina's goal is to increase the proportion of Americans who hold high-quality degrees and credentials to 60 percent by 2025.  Lumina pursues this goal in three ways: by identifying and supporting effective practice, through public policy advocacy, and by using our communications and convening power to build public will for change.

SOURCE American Association of Community Colleges