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Obama Proposes Pell Grant Expansion in FY 2017 Budget

The Obama administration is proposing that Congress approve a $2 billion-a-year expansion of Pell Grants to finance year-round awards and a bonus for students who stay on track to graduation. The two new Pell proposals are intended to help students to accelerate progress towards their degrees, increasing their likelihood of on-time completion. The first program, “Pell for Accelerated Completion,” would let full-time students earn a third grant award in an academic year (rather than the current limit of two awards). The President and Congress eliminated year-round grants in a 2011 budget bill. The administration’s other proposal, an “On-Track Pell Bonus,” would add $300 to the maximum award for students who take at least 15 credits per semester in an academic year. The administration estimates the bonus would benefit 2.3 million individuals and help them graduate on time. The $2 billion cost for the Pell expansions in fiscal year 2017 will be included in Obama’s budget proposal to be released on February 9, 2016.