Federal Pell grants have helped millions of students afford a college education over the past 5 decades. In recent years, though, college costs have risen at a much faster rate than the Pell grant budget.
Earlier this year, the U.S. House Appropriations Committee approved an increase in the amount awarded to an eligible student from almost $6,900 per year to about $7,400.
But President Joe Biden wants Pell grant spending to double by 2029.
Michigan State University President Samuel Stanley Jr. has written an op-ed piece for the political website The Hill, calling for increasing Pell grants to $13,000 a year as soon as possible.
President Stanley discussed his proposal with WKAR’s Scott Pohl.
Interview Highlights
On why he says Pell grants need to increase
Pell grants have not kept up with inflation. They haven't kept up with the cost of education. As we've seen, costs are going up yearly around the country and particularly during this period of inflationary pressure. So, I think we need to do more. When it was first started, the Pell grant covered about 80% of the cost of college. Now it's less than a third of the cost of college for most places around the country. And so we need to do more, and I'd love to see it accelerated.
On how Pell grants can be used to pay for MSU's tuition
Our tuition is roughly $14,000, let's say, per year for in-state students. The Pell grant covers about half of that. So, you can see what's left is the other half of that. Tuition, costs for books, costs for room and board unless you're living at home, all those costs are built in. So, I would say it covers again probably roughly 40% of what we'd be at MSU, maybe a little less than that, maybe close to 33%, kind of the data we saw nationwide. And so again, making up more of that through increased Pells would make a huge difference to the students.
On the response to his op-ed
I've heard from a couple of presidents who, you know, wrote to thank me for doing this essentially, and I think something that this is one area of agreement among all college presidents. We don't agree on every issue, but we certainly agree about Pell grants and their importance for higher education. I have not heard much from our congressional districts, but I have talked to our elected officials, and I had a chance to talk to Sen. Stabenow, Sen. Peters, and so on. They're very supportive of Pell grants, and have been, and so I think they will continue to be supporters. I know Congresswoman Slotkin is a strong supporter as well.
Interview Transcript
Scott Pohl: For WKAR News, I'm Scott Pohl. Federal Pell grants have helped millions of students afford a college education over the past 5 decades. In recent years, though, college costs have risen at a much faster rate than the Pell grant budget.
Earlier this year, the U.S. House Appropriations Committee approved an increase in the amount awarded to an eligible student from almost $6,900 per year to about $7,400.
But President Joe Biden wants Pell grant spending to double by 2029.
Michigan State University President Samuel Stanley Jr. has written an op-ed piece for the political website The Hill, calling for increasing Pell grants to $13,000 a year as soon as possible.
I talked with President Stanley about his proposal.
Samuel Stanley Jr.: Pell grants have not kept up with inflation. They haven't kept up with the cost of education. As we've seen, costs are going up yearly around the country and particularly during this period of inflationary pressure. So, I think we need to do more. When it was first started, the Pell grant covered about 80% of the cost of college. Now it's less than a third of the cost of college for most places around the country.
When it was first started, the Pell grant covered about 80% of the cost of college. Now it's less than a third of the cost of college for most places around the country.
And so we need to do more, and I'd love to see it accelerated. We have a $500 increase that is proposed this year, and that'll be helpful. Every little bit helps. And of course, we're increasing our financial aid at MSU as well, and we're excited about that to be able to offer more to students this year than we have before. We're going to go over $200 million in financial aid, essentially, to do more. But getting this done and getting it done sooner, I would love to see it.
Pohl: Your call here is aimed at not only getting students into school, but to keep them in school until they graduate, right?
Stanley: Absolutely. You know, financial reasons are one of the reasons people drop out of college. And it's one of the ones we don't talk to very often, but sometimes a mere challenge in the family finances, someone loses a job. There's an accident, and someone can't work can make particularly low-income student vulnerable. So again, the Pell grant provides a kind of cushion about this.
We know that students who are financed better, who have more financial aid, who get closer to cost of attendance are much more likely to retain than those who do not.
It's a grant, not a loan. It reduces student debt, reduces the pressure on students and helps students retain and graduate. And we know that students who are financed better, who have more financial aid, who get closer to cost of attendance are much more likely to retain than those who do not.
Pohl: At this point, what are you projecting MSU's education costs to be in the 2022-23 academic year?
And if Pell Grants are $7,395, what will be left over for students to either pay on their own or take out loans so they can pay?
Stanley: So, a great question. So, we anticipate about a 3% increase in tuition. That's built into our financial aid program, so for those students who would be Pell eligible, that's going to be covered by an increase in financial aid. I mentioned earlier, we're going to go to over $200 million in financial aid, about $11 million more, to help cover that. So, that'll be covered.
Our tuition is roughly $14,000, let's say, per year for in-state students. The Pell grant covers about half of that. So, you can see what's left is the other half of that. Tuition, costs for books, costs for room and board unless you're living at home, so all those costs are built in.
So, I would say it covers again probably roughly 40% of what we'd be at MSU, maybe a little less than that, maybe close to 33%, kind of the data we saw nationwide. And so again, making up more of that through increased Pells would make a huge difference to the students.
Pohl: The Pell grant program uses both mandatory funds that are there no matter what, about one sixth of the pool of money involved and discretionary funds subject to change from year to year.
So, congressional action would be needed. Is that something you also hope would be addressed, that more money would be dedicated to Pell grants as opposed to subject to change from year to year?
Stanley: Yeah. That's a great question, Scott, and I think absolutely, we would like to see more dedicated, because I think it is something you have to vote on every year. It becomes more of a political issue, obviously, and less of a structural issue. And I think, so getting that built into these funds, I think would make a huge difference. So, yes, very much support it.
Pohl: Since the op-ed you wrote was published in The Hill, what, if any, reaction have you gotten from other university presidents, from members of Congress, from the Biden administration? Have you heard from others?
I've heard from a couple of presidents who, you know, wrote to thank me for doing this essentially, and I think something that this is one area of agreement among all college presidents.
Stanley: I've heard from a couple of presidents who, you know, wrote to thank me for doing this essentially, and I think something that this is one area of agreement among all college presidents. We don't agree on every issue, but we certainly agree about Pell grants and their importance for higher education. I have not heard much from our congressional districts, but I have talked to our elected officials, and I had a chance to talk to Sen. Stabenow, Sen. Peters, and so on.
They're very supportive of Pell grants, and have been, and so I think they will continue to be supporters. I know Congresswoman Slotkin is a strong supporter as well. So, I think our delegation in general has been supportive of this. And it's really getting others, I think, to get involved now.
Pohl: Support is not the same as action, though. I guess I would conclude with a question about how quickly you're hoping for action along this line.
Stanley: Well, I think we'll have to see what's happening with Congress in terms of what kinds of sessions they're going to have. There were some opportunities earlier in this session, I think, to make these differences and they didn't find their way into bills. And so, the modest increase we've talked about has found its way into the budget, but more dramatic doubling did not find its way, so I think we're still in the phase of getting support together, so that we can introduce something that actually would have a chance to be passed.
Pohl: MSU President Samuel Stanley Jr., thank you.
Stanley: Thank you, Scott. Always a pleasure.
This conversation has been edited for clarity and conciseness.
