Mass. commissioner: Federal Pell Grant cuts could jeopardize free community college
Photo | Courtesy of Mount Wachusett Community College
Mount Wachusett Community College campus in Gardner
If enacted, Pell Grant cuts approved by the U.S. House could upend free community college programs that are just getting started in Massachusetts and saddle current and former students with more student loan debt, public higher education officials warned this week.
"We're hyper-focused on seeing the House's proposed Pell changes fail," William Heineman, president of North Shore Community College and chair of the Community College Council of Presidents, said at a Board of Higher Education meeting Tuesday. "Tens of thousands of our students rely on Pell Grants," he said, and the changes "would threaten the future of free community college and have a disastrous impact on our students."
The U.S. Senate's version of the bill has not made it to that chamber's floor yet, though Deputy Commissioner for Policy at DHE Michael Dannenberg said the chairman of the Senate Education Committee has rejected the Pell Grant cut put forward by the House GOP. Still, higher education officials in Massachusetts say they remain concerned about what could happen during negotiations over details of a final bill.
The House version of the bill would eliminate Pell eligibility for students taking fewer than eight credits and raise the credit requirement for a full Pell award from 12 to 15.
Massachusetts Commissioner of Higher Education Noe Ortega said those changes could directly undermine the state’s free community college programs, which rely heavily on Pell awards to offset costs.
"We’ve got a lot of programs in Massachusetts that we call 'last dollar' programs, which are reliant on the first-dollar awards, right? And Pell Grant makes the biggest, significant impact," Ortega said. "Any changes that happen at the federal level with Pell Grant impacts and puts strains on the resources that are at the state level."
Dannenberg estimated the House proposal could reduce or eliminate Pell Grant aid for approximately 45,000 Massachusetts residents, resulting in nearly $60 million in lost financial support.
In response to a question from Thalles De Souza, a community college student and student voting member of the board, about how these changes could impact the state's free community college program, Ortega reiterated that the state’s ability to offer tuition-free programs depends on maintaining strong federal support.
"We want to continue to offer those commitments to our students, right? So that’s where I think a lot of the concerns are emanating."
Dannenberg warned the House bill would also impose significant new burdens on student loan borrowers. He said roughly 45,000 Massachusetts residents could see a 29% increase in interest rates on subsidized Stafford loans under the House changes. Additionally, 270,000 borrowers in Massachusetts already repaying loans could face higher costs under revisions to income-based repayment plans.
"The chairman of the Senate Education Committee has rejected the Pell Grant cut put forward by the House GOP," Dannenberg noted. "However, the Senate chairman… embraced the House cut to the student loan program, which would mean there is a high likelihood that we will see much more expensive federal student loans in the coming years."
"So the long and short of it here," he concluded, "is that it's highly likely that there will be dramatic cuts to student loans. I would say it's more likely than not that the reductions in Pell Grant aid will not be seen — and it is likely that there will be an increase in the federal endowment tax for super wealthy institutions."
As the U.S. Senate prepares its final version of the bill, Massachusetts higher education officials say they are keeping a close eye on what makes it in and what's left on the cutting room floor.
Massachusetts launched its free community college program last fall after state budget negotiators agreed to cover the costs with revenue from the surtax on the state's highest income households. The surtax approved in 2022 has quickly become a major source of revenue for new education and transportation investments.
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