The amendment proposed under this bill would alter existing provisions of the Higher Education Act of 1965, particularly Section 401, which governs Pell Grants. If enacted, this bill would not only raise the maximum award amount for the next academic year but also establish a mechanism for future adjustments based on a specified percentage increase, tied to the Consumer Price Index. This aims to ensure that the value of the Pell Grant keeps pace with inflation and remains effective in covering educational costs over time.
Summary
House Bill 7488, titled the 'Degrees Not Debt Act of 2024', seeks to significantly increase the total maximum Federal Pell Grant available to students pursuing higher education in the United States. The proposed bill outlines an increase in the Pell Grant amount for the award year 2024-2025 to $14,800, representing a pivotal step towards easing the financial burden on students and families by enhancing access to federal financial assistance for education.
Contention
The bill may face diverse opinions among lawmakers and stakeholders in the education sector. Supporters of HB7488 are expected to argue that increasing Pell Grants will alleviate student debt, thereby promoting higher enrollment rates in post-secondary education. However, critics might raise concerns regarding the funding sources for the increased grants and whether the government can sustain such financial commitments without adding to the national deficit. There may also be debates over prioritizing funding for Pell Grants in the context of broader educational reforms.