Around 40% of U.S. college student rely on Pell Grants, a type of federal aid available to low-income families who demonstrate financial need on the Free Application for Federal Student Aid application, according to the National Center for Education Statistics.
A major reason for the projected shortfall was the increase in student population in the fall and the increase in applicants for Pell Grants. Enrollment increased more than 5% in higher education.
James Cosby, founding executive director of Bottom Line Ohio, which helps first-generation students get into and finish college, said more freshmen going to college this year and more eligibility for Pell Grants under previous president Joe Biden’s administration meant more students got Pell Grants.
“They were already projecting a shortfall, but they didn’t think it was going to hit until 2027,” Cosby said. “Now it’s going to hit in 2026. That is coupled with a current administration that has made it clear that they want to cut as much as they can from the Department of Education federally.”
Jack Wallace, director of governmental and lender relations at Yrefy, an Arizona-based lender institution specializing in refinancing student loans, said Pell Grants have been a hot topic in Washington, D.C. in the last few years, though it’s not clear yet what the current Congress will be doing about the upcoming budget.
Ashley Overman, Montgomery County Educational Service Center college access counselor, stressed that those who qualify for Pell Grants need them. New Lebanon and Dayton are two areas of Montgomery County that have a high Pell-eligible rate, she said.
“It doesn’t matter where you live, what your background is,” she said. “It’s really about helping elevate all students so they could be their best.”
Cosby and Overman both said that Pell Grants have not kept up with the rising cost of higher education. Students will often still take out student loans or need to apply for scholarships.
The maximum amount of Pell Grants a student could qualify for now is $7,395. Wright State University, considered one of the most affordable universities in the state, costs $12,872 for in-state tuition per year. That number doesn’t include books or housing. A full Pell Grant covers about 57% of that tuition cost, so the student would still have to find another way to pay the remainder.
But even a few hundred dollars can be the difference between a student paying for college or dropping out for a semester.
What can I do?
Students who are worried about paying for college next year should know remember things could change before the summer, educational professional say. There are ways to find scholarships and grants to help pay for school.
Overman, Cosby and Wallace all said they hope Congress puts a bipartisan effort into funding Pell Grant access in the current budget cycle.
In the meantime, all three said the news should not block students from applying to college, filling out the FAFSA and figuring out a way to a degree.
Cosby and Overman pointed to programs like the Governor’s Merit Scholarship, which can award up to $5,000 for four years to the top 5% of Ohio high school students; Work Ready grants, for Ohio students who demonstrate high need based on their FAFSA and attend community colleges, technical colleges, state college branches or Ohio Technical Centers; or even a program like Wright State University’s Take Flight program, a scholarship for first-generation students attending Wright State.
Cosby said high school students worried about affording college should look into College Credit Plus, a way for middle and high school students in Ohio to take college credits while still in their regular school.
Wallace said military families could find scholarships provided for the children of veterans and check out local foundations like the Dayton Foundation that provide specific scholarships. Some universities offer scholarships for students based on departments or majors.
Still, Cosby said he believes Ohio’s colleges are uniquely positioned to help their students. Many Ohio universities and colleges are affordable, he said, and offer great scholarships and aid packages to help students through.
“So I’m not too doom and gloom on it yet,” Cosby said. “I think Ohio is uniquely positioned for our students to be successful and to kind of weather this storm, regardless of what happens federally.”
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