Year Round Pell is Swell

 It’s no surprise that enrollment in postsecondary education has been on the decline in recent years. According to the National Student Clearinghouse Research Center, overall postsecondary enrollment has decreased 1.5% from Spring 2016 to Spring 2017.  That’s the equivalent of a decline of 262,400 students compared to the Spring 2016 semester. Furthermore, there has been a decline of 523,200 students from the Spring 2015 semester to the Spring 2017 semester. 

One factor driving the decline in enrollment is the increased cost of tuition. Postsecondary education costs to students have increased approximately 11% in the past five years, according to College Board.  This is a substantial increase when compared to U.S. inflation of 6% during the same time period. 

That being said, many higher education institutions are feeling the pressure to increase tuition to counter increasing expenses and stagnant revenues.  Moody’s found that “one-third of small colleges generated operating deficits in Fiscal year 2016,” which is an increase of 20% when compared to three years ago.  With the median age of facilities and equipment increasing consecutively during the past five years from 11.9 years in 2012 to 13.3 years in 2016, there will be fewer opportunities to cut costs in the future.

If only there was a new source of assistance available to students and institutions to help elevate these rising financial pressures. Thanks to Congress and the U.S. Department of Education, there is!  Beginning July 1, 2017, Year-Round Pell Grants will be available to students.  Eligible students will be able to receive up to 150% of the Student’s Federal Pell Grant Scheduled Award.  That’s up to $2,960 in additional Pell grants per year for each student.  According to Secretary of Education Betsy DeVos, “expanding access to the Pell program” will allow “student(s) who need additional resources to graduate more quickly and with less debt.”

With the availability of additional government grants, higher education institutions may realize more flexibility when considering the relationship between institutional aid and tuition.  Year-Round Pell Grants could serve as a strong incentive for students to enroll in summer classes, and an opportunity for higher education institutions to provide the best value to students through highly promoted summer semesters. No matter how you slice it, year-round Pell is swell.

For more information, contact Schneider Downs or visit the Our Thoughts On blog.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Pell Grant Program Facing Shortfall
2024 Policy Shifts: Essential Updates Every College Should Know
Gainful Employment Disclosures in Higher Education
Protect Your Students, Faculty and Staff: 3 Common Cyber Attack Methods to Watch Out for in 2023
Key Takeaways from the 2023 CUPA-HR Higher Education Employee Retention Survey
The Latest on the NCAA's National NIL Proposal
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×