Substantial boost to Pell Grants would help students and the economy across the board

Right now, Congress is weighing whether to update the current level of funding for Pell Grants, which help students most in need attend colleges and technical schools in Kansas and across the nation.

One thing the lawmakers should strongly consider is this: If you chart the buying power of Pell Grants over the years, the falling line tells the story of how the grants — the foundation of federal financial aid programs — help students far less than they once did.

Where Pell Grants covered over three-quarters of the cost of education at public four-year colleges in the 1970s, it’s now about 30%. The rate of decline is similar at private colleges such as Wichita’s Friends and Newman universities, which are fortunate to supplement the grants with other sources of aid and serve students seeking the experience of a smaller school.

The statistics add up to this: It’s time to significantly increase Pell Grants and restore the access and opportunity envisioned when the grants were created 50 years ago. Senators and representatives in Washington have the chance — through the budget process this fall — to make education more affordable once again by seriously increasing Pell Grants instead of just making the minimal adjustments they do in most years.

Higher Pell Grants could not only make community college free for many, but also would provide students greater educational options by raising the likelihood they could attend Kansas’ private colleges as well as its Regents universities. A wonderful thing about the need-based grants is the broad swath of Americans they reach, as they help lower-income students in every state, whether they come from a rural, urban or suburban home. Nationally, nearly 60% of Black students, almost half of Latino students and 30% of white ones receive the grants.

The need is evidenced by the fact that more than 80% of Pell money goes to students with family incomes under $40,000 a year, a level where college can be out of reach. The grants put money in the hands of students to pay tuition, fees, housing, books and other essentials and can be the deciding factor in whether they attend college or not.

About 4 in 10 students at Friends receive Pell Grants, while 1 in 3 do at Newman. And the grants pay off handsomely in bachelor’s degrees: Students at the state’s private colleges, like Friends and Newman, graduate at a higher rate than those at other institutions.

Significantly increasing Pell Grants from the current $6,495 would lessen dependence on loans. Students would have a wider range of choices, too, whether it’s pursuing an associate’s degree at community college, training as an electrician or sheet metal worker at vocational school, or seeking a business or teaching degree at a four-year institution. It would also reduce the likelihood they quit school because of financial pressures.

Pell Grants have a bottom-line impact that goes beyond dreams and career goals. Studies show those with bachelor’s degrees earn an average of 40% more than people who have just a high school degree — an astounding $1 million more over their lifetimes. On average, the U.S. Census Bureau found, a new college graduate pays $3,660 more in taxes each year. That additional tax revenue means the money spent to significantly increase Pell Grants would be returned to government coffers relatively quickly.

This kind of investment is particularly needed in the wake of the COVID-19 pandemic, which cost more than 20 million people their jobs and reduced college enrollment across the nation. Substantially increasing the maximum amount of Pell Grants would provide another avenue for the workforce preparation necessary to bring the economy back to full health. It also would accomplish the goal some seek — “free college” for students who really need it — without creating a new federal bureaucracy to manage it or putting the burden on states to do so.

It’s time to return to the original intent and impact of the Pell program. As the leaders of Friends and Newman universities, we urge you — for the futures of your families, neighbors, communities and country — to reach out to your representatives and senators in Washington and ask them to take a bold step and significantly increase Pell Grants.

Amy Bragg Carey is president of Friends University in Wichita. She co-authored this with Kathleen S. Jagger, president of Newman University in Wichita.