Pell Grant Dollars Are Left Unclaimed: What That Means for Students and States

Title: Pell {Dollars} Left on the Desk

Authors: Louisa Woodhouse and Invoice DeBaun

Supply: Nationwide Faculty Attainment Community

Pell Grants have lengthy supported low-income college students as they pursue greater schooling, rising the monetary capabilities and educational alternatives afforded to college students. Nonetheless, receiving federal monetary support via Pell Grants depends on submitting the Free Software for Federal Scholar Support (FAFSA), which may function a barrier to college students.

The Nationwide Faculty Attainment Community (NCAN) has revealed a report on the unclaimed Pell Grants left on the desk by highschool graduates. Roughly 830,000 Pell Grant-eligible college students didn’t full FAFSA within the 2024 cycle, leading to almost $4.4 billion in unclaimed Pell Grant awards. These unclaimed funds are priceless to each college students and states, with the power to additional the tutorial pursuits of low-income college students and strengthen state economies.

NCAN has run stories detailing the worth of unclaimed Pell Grants over the previous 4 years. Usually, almost 60 p.c of highschool graduates full the FAFSA by June 30, with completion charges trailing off markedly as college students start their summer season.

Nonetheless, because of the technical challenges and delayed launch of FAFSA that occurred within the 2024 cycle, by the tip of June, solely 50 p.c of highschool graduates had accomplished the shape. By August 30, 57 p.c of scholars had filed the FAFSA, reducing the quantity of monetary support left on the desk. The implications are clear: hindrance to the monetary support software course of, whether or not that be via technical difficulties, decreased help, or quick staffing, may end up in many college students dropping entry to Pell Grant funds.

The impression of decrease FAFSA completion charges, and due to this fact extra unclaimed Pell Grants, is just not felt completely by college students however by states as properly. In 2024, college students in California and Texas every left almost $550 million in Pell Grant awards unclaimed. Whereas these states lose probably the most when FAFSA completion charges are low, in addition they stand to achieve probably the most if completion charges enhance.

Evaluation from NCAN finds that if FAFSA completion charges had elevated by an extra 10 share factors this yr, California would have seen a $145 million enhance in Pell Grant awards whereas Texas would have obtained an extra $130 million. The extra federal support may translate into extra college students attending postsecondary establishments, filling workforce gaps and strengthening the states’ economies.

In establishing the importance of accelerating FAFSA submitting charges for low-income college students, NCAN provides commentary on how states can higher assist college students, particularly within the wake of potential coverage modifications directed at greater schooling. States can fund FAFSA completion efforts, offering extra in-school and on-line sources for college students to entry when submitting. Moreover, FAFSA knowledge sharing amongst states could allow highschool counselors and native faculty entry companions to higher goal college students that would profit from extra help.

To learn extra about unclaimed Pell Grants and the position states can play on bolstering FAFSA completion charges, click here.

—Julia Napier