House Approves One-Year Repeal of Pell-Grant ‘Tuition Sensitivity’

Under the Pell Grant Equity Act of 2007, approved on a voice vote last week by the U.S. House, low-income students attending postsecondary institutions with low tuition rates would qualify for maximum Pell-Grant awards. Pell-Grant awards to these students currently are reduced under “tuition sensitivity” provisions of federal law.

The measure is projected to benefit approximately 96,000 California community-college students during the 2007-2008 academic year. Although the bill repeals the tuition-sensitivity provision for only one academic year, both Republican and Democratic leaders have vowed to include a permanent fix as part of legislation to complete the reauthorization of the Higher Education Act.

The $11-million cost of the bill would be covered by reducing the percentage of default collections that student-loan guarantors can retain.

A companion bill has been introduced in the U.S. Senate.