If federal increases in Pell grant funding are to increase educational opportunities and attainment, states must ensure these increases supplement, rather than replace, state grant aid, states this report from the Urban Institute.
According to the report’s authors, changes to the Pell grant program will not affect all state programs the same way. In some states, the impact will be immediate and direct. For example, some programs promise eligible students a certain amount of total grant aid—either state and federal aid combined or state, federal, and institutional aid combined. In states that make their awards without reference to Pell, students are more likely to see their total grant aid increase along with their Pell grants.
This report considers different basic grant structures, providing examples of actual state grant programs and how increases in Pell are likely to affect them. It also addresses impending modifications to the Pell program and their potential implications for state grant aid.