Photo by Allison Shelley/Complete College Photo Library
By Bianca Licitra
The Student Aid Alliance, which AAU helps lead, sent a letter last week to leaders of the House and Senate Appropriations Subcommittees on Labor, Health and Human Services, Education, and Related Agencies urging them to protect and maintain funding for federal student aid programs in FY27. AAU joined the letter along with the American Council on Education, the Association of Public and Land-grant Universities, and other higher education associations that also belong to the alliance.
The alliance’s letter emphasized that both Republicans and Democrats have historically supported federal student aid programs, which provide access to postsecondary education and “an opportunity to succeed in college and beyond” for all students. By increasing access to colleges and universities, the programs allow students to remain competitive in a workforce that increasingly demands college credentials and rewards bachelor’s degree holders with higher salaries, the letter noted.
The alliance especially asked lawmakers to prioritize funding the federal Pell Grant program – “the single most important tool to enable low-income students to afford college” – in FY27. More than 7 million students use Pell Grants to help pay for college, and the current maximum award covers between 16 and 62% of the students’ average tuition, fees, housing, and food costs.
However, the program is predicted to face a $17 billion shortfall in FY27. The shortfall is largely the result of the bipartisan FAFSA Simplification Act of 2020, which expanded Pell Grant eligibility to about 1.7 million additional students and increased access to the program for more than 555,000 students. The Student Aid Alliance urged Congress to address the shortfall “and place the Pell Grant program on a sustainable path moving forward.” The alliance also noted that adjusting the Pell maximum award for FY27 to keep up with inflation would mean a $200 increase.
In addition, the alliance asked lawmakers to increase funding for other campus-based federal student aid programs. These include the Federal Supplemental Education Opportunity Grant (FESOG), which provides targeted, need-based grant aid to low-income students; and the Federal Work-Study (FWS) program, which supports part-time employment for eligible students with financial need. Colleges and universities must provide matching funds to participate in these programs. The alliance asked lawmakers to increase FSEOG funding to $966.26 million and FWS funding to $1.31 billion.
The letter also suggested a $1.3 billion increase to Federal TRIO programs, which support initiatives to help eligible students access and complete higher education. The increase would allow TRIO to move closer to its goal of serving 1 million students and maintaining high-quality services. “A robust investment in TRIO will help ensure that low-income students, first-generation students, and students with disabilities successfully prepare for, enroll in, and graduate from postsecondary programs and make wise choices in paying for college,” the alliance said.
Finally, the alliance suggested increases for the Gaining Early Awareness and Readiness in Undergraduate Programs (GEAR UP) and Graduate Assistance in Areas of National Need (GAANN) programs. The letter noted that GEAR UP has a “proven track record of success in preparing students to enter and succeed in college” and requires a $410 million increase to bring approximately 40,000 new students into the program.
The alliance requested a $28.6 million increase for GAANN, a program that offers fellowships to top students in fields directly related to the nation’s current competitive needs. Increased funding would allow for nearly 400 fellowships.
AAU, along with the Student Aid Alliance, urges Congress to continue its bipartisan support of federal student aid programs to enable low-and middle-income students to succeed.
Bianca Licitra is editorial and communications assistant at AAU.