The SORT — June 9: House Bill Targets Subsidized Loans
A House spending proposal would trade subsidized undergraduate loans for a bigger Pell Grant, and a new analysis links Pell eligibility to higher rates of food insecurity and lower college completion.
House Spending Proposal Would Ax Subsidized Loans to Fund Larger Pell Grant
The House Appropriations Subcommittee released its fiscal year 2027 education spending bill on June 4, proposing to end new subsidized federal student loans after July 1, 2027, and redirect the estimated $16 billion in ten-year savings to the Pell Grant program. The bill would raise the maximum Pell award $50 to $7,445 and add $15 billion to address the program's projected shortfall; it also cuts Federal Work-Study by 26% and the Federal Supplemental Educational Opportunity Grant by 40%. The proposal still requires full House, Senate, and presidential action to become law.
Why it matters: Subsidized loans don't accrue interest while you're enrolled — losing them would add to what future undergrads owe at graduation, even as the larger Pell would benefit the lowest-income students.
Source: NASFAA
Pell Students Face Higher Food Insecurity and Lower Persistence, Report Finds
An Institute for Higher Education Policy analysis, covered by Inside Higher Ed on June 2, found that 42% of Pell Grant recipients experience food insecurity compared to 22% of non-Pell students. Only 65% of Pell recipients persisted in college or earned a credential within three years, versus 76% of students without a Pell Grant. The report warns that combining federal SNAP benefit reductions with the Pell program's projected funding shortfall could widen those gaps further.
Why it matters: Students on Pell Grants face compounding barriers beyond tuition — campus basic needs offices and emergency aid funds are worth looking into if you're struggling with food or housing costs.
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