A Supplemental Wealth-Based Pell Grant: How to Meet Unaddressed Need and Close Racial Gaps in Student Loan Borrowing
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| Title: | A Supplemental Wealth-Based Pell Grant: How to Meet Unaddressed Need and Close Racial Gaps in Student Loan Borrowing |
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| Language: | English |
| Authors: | Christian Michael Smith, Laura T. Hamilton, Charlie Eaton, The Institute for College Access & Success (TICAS) |
| Source: | Institute for College Access & Success. 2024. |
| Availability: | Institute for College Access & Success. 405 14th Street 11th Floor, Oakland, CA 94612. Tel: 5110-559-9509; Fax: 510-845-4112; e-mail: admin@ticas.org; Web site: http://www.ticas.org |
| Peer Reviewed: | N |
| Page Count: | 33 |
| Publication Date: | 2024 |
| Sponsoring Agency: | Lumina Foundation Arnold Ventures |
| Document Type: | Reports - Evaluative |
| Descriptors: | Federal Aid, Student Financial Aid, Low Income Students, African American Students, Hispanic American Students, Grants, Student Loan Programs, Disproportionate Representation, Income, Access to Education, Debt (Financial), Racial Factors, Loan Repayment, Eligibility |
| Laws, Policies and Program Identifiers: | Pell Grant Program |
| Abstract: | Current formulas for awarding federal student financial aid are based primarily on income and don't fully account for wealth inequality, especially by race. Students from low-income and low-wealth families--who are disproportionately Black and Latine--often have to take out more student loans to attend college. Inevitably, without family wealth to lean on, these students often struggle to pay back their loans and achieve financial security. In a new collaborative report with the Institute for College Access & Success (TICAS), researchers from the Higher Education, Race, and the Economy (HERE) Lab at the University of California, Merced offer a policy solution: a supplemental Wealth-Based Pell Grant to help eliminate racial disparities in student loan borrowing and make debt-free college a reality for many more students. The analysis suggests that implementing Wealth-Based Pell for students with family wealth under $500 could enable one million more full-time students--including nearly two-thirds of Black students--to attend college debt-free in their first year. [This report was co-produced with the Higher Education, Race, and the Economy (HERE) Lab.] |
| Abstractor: | As Provided |
| Entry Date: | 2025 |
| Accession Number: | ED671520 |
| Database: | ERIC |
| Abstract: | Current formulas for awarding federal student financial aid are based primarily on income and don't fully account for wealth inequality, especially by race. Students from low-income and low-wealth families--who are disproportionately Black and Latine--often have to take out more student loans to attend college. Inevitably, without family wealth to lean on, these students often struggle to pay back their loans and achieve financial security. In a new collaborative report with the Institute for College Access & Success (TICAS), researchers from the Higher Education, Race, and the Economy (HERE) Lab at the University of California, Merced offer a policy solution: a supplemental Wealth-Based Pell Grant to help eliminate racial disparities in student loan borrowing and make debt-free college a reality for many more students. The analysis suggests that implementing Wealth-Based Pell for students with family wealth under $500 could enable one million more full-time students--including nearly two-thirds of Black students--to attend college debt-free in their first year. [This report was co-produced with the Higher Education, Race, and the Economy (HERE) Lab.] |
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