United States President Donald Trump reinstated the Pell Grant eligibility, which is a subsidy from the federal government. It was specifically provided to students who need it to pay for their college tuition.
Under the Pell Grant, financial needs are given to less-fortunate students and those who have not earned any bachelor's degree yet. Those who are under the Pell Grant but got affected when schools that recognized the grant shut down will be eligible for the assistance again. The Pell Grant is different from other student loans as it has a lifetime cap regarding funding.
Some of the schools that shut down due to bankruptcy were Corinthian Colleges and ITT Technical Institute. These students under the Pell Grant originally could not continue borrowing money from the assistance program and could not enroll at a different university. Senator Patty Murray, however, pointed out a provision that allowed the Department of Education to intervene and let students continue borrowing money and transfer to another school if their former school suddenly closed down.
Murray released a statement of the Pell Grant reinstatement and she said that it is an important step to provide relief to students. She also promised, "I am going to keep pushing this administration to put students and borrowers ahead of for-profit colleges and Wall Street investors." More than 50,000 students under the Pell Grant assistance enrolled in Corinthian Colleges and ITT Technical Institute before they shut down, U.S. News shared.
The Department of Education assured students they will adjust the lifetime cap regarding the school year when the schools suddenly closed down, Inside Higher Ed shared. The government allowed students under the Pell Grant assistance to borrow money for only six year or 12 semesters.
The Trump administration's reinstatement of the Pell Grant came after he told CEOs at a town hall that he will increase funding for education. The statement was due to the fact that CEOs complained about students not having enough skills needed for the job they offered.
The Education Department did not say when exactly will the reinstatement roll out. Students concerned should watch out for an email from the department.
