Number: RL34084
Title: Reconfiguring the Federal Pell Grant Program: Effect of Selected Changes on Program Costs and on Students in Different Income Groups
Authors: Charmaine Mercer, Domestic Social Policy Division 
Abstract: This report models selected changes in the Pell Grant program's award rules and the need analysis formula to examine what impact, if any, the changes would have on program costs as well as the recipient population. Specifically, the report examines the effect of the following changes: increasing the maximum appropriated award; increasing the amount of the minimum award and dropping "the bump;" eliminating the tuition sensitivity provision; and increasing the income eligibility threshold for the automatic-zero expected family contribution provision. In addition to analyzing each of these provisions separately, a final analysis combines some of the provisions to examine the combined effect of changing groups of award rules simultaneously. The report begins with a brief description of the federal need analysis system to illustrate how the formula interacts with the Pell Grant award. This is followed by a review of the Pell Grant program's structure, including a brief discussion of the eligibility criteria, funding process, and program award rules for determining an individual's grants. Finally, the report concludes with a discussion of the results for each of the aforementioned analyses.
Pages: 29
Date: July 9, 2007