In a move aimed at alleviating the financial strain on college students, California Representatives Salud Carbajal and Adam Schiff have introduced a bill that proposes to double the most well-known grant available to most students, potentially easing the burden of the nation’s collective $1.7 trillion student loan debt.
The “Degrees Not Debt Act of 2024” introduced by the California legislators last Thursday will see the maximum Federal Pell Grant double from the current $7,395 to $14,800, marking the largest expansion of the Pell Grant in a decade, significantly reducing the cost of higher education for millions of students.
With endorsements from major educational institutions, the effort reflects a growing acknowledgment of the educational and economic imperative to support students from lower and moderate-income families in their pursuit of higher education.
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“Our bill will double the maximum award for these grants because the current maximum falls short of covering the ever-increasing costs associated with higher education,” Representative Schiff said in a public statement last Thursday. “It’s an obvious investment: we’re making college more accessible and affordable, ensuring hardworking students everywhere have the chance they deserve.”
Understanding the far-reaching impact of the Degrees Not Debt Act requires a closer look at the current educational landscape. The Pell Grant, often considered the backbone of federal student aid, currently assists roughly 7 million students each year, according to the National College Attainment Network (NCAN).
That figure represents about one-third of all undergraduate students, pointing to the grant’s significance in making higher education accessible. However, in the 2022–2023 academic year, Statista tracked 6 million students who benefited from the program.
At the close of 2023, with the average federal student loan debt hovering around $37,090 and the national student loan tally reaching a staggering $1.6 trillion, the financial burden on students is clearer than ever. California, carrying the largest portion of the debt (over $140 billion), serves as the poster child, with the legislators calling for the urgent need for solutions to support students financially.
Under the proposed act, the new grant amount would significantly reduce the average annual tuition cost for a student, which the Education Data Initiative lists as $36,436. A $14,800 reduction would represent a marked discount for students from the current coverage of just a fifth of the cost to over 40 percent.
By offering this level of aid, the bill aims to minimize the dependency on loans, thus reducing long-term financial stress for graduates.
“As someone who was the first in his family to graduate college and someone who relied on Pell and other federal aid to earn that degree, I know the value of these awards have eroded over the past decade,” Congressman Carbajal said in a public statement. “We have made progress in recent years securing the largest expansion of Pell in a decade, but still it is not enough to keep up with the rising cost of higher education.”
According to the press release, the bill has the endorsement of major institutions involved in higher education including the National Education Association, Young Invincibles, University of California System, Santa Barbara City College, Allan Hancock College, Cuesta College, Ventura College, Pasadena City College, Glendale Community College, and Los Angeles Community College District.
“Representative Carbajal’s Degrees Not Debt Act means more support for thousands of SBCC students to afford college and living costs in Santa Barbara,” Jonathan Abboud, Santa Barbara City College Board of Trustees president said in the statement. “We are grateful for his continued advocacy.”
Other education executives, including Dr. Jill Stearns, superintendent and president of Cuesta College, Satra D. Taylor, director of Higher Education and Workforce Policy and Advocacy at Young Invincibles, and Kevin G. Walthers, superintendent and president of Allan Hancock College applauded the bill, saying that the Degrees Not Debt Act is a boon for students and their families.
As millions of students across the country stand to benefit, the focus shifts to its journey through Congress. Currently, the bill is in the “introduced” stage of the legislative process and must be passed by the House, then passed by the Senate, and finally signed by President Joe Biden before it becomes law.
Unfortunately, according to U.S. Congress tracking website GovTrack.us, the Degrees Not Debt Act of 2024 has a one percent chance of being passed by the committee and a zero percent chance of being enacted. However, it should be noted that Carbajal and Schiff were successful in working with the Biden Administration in raising the maximum Pell award for the 2024-2025 school year to the current $7,395—$500 higher than 2023, and $900 higher than in 2022.
Newsweek has reached out to Representatives Carbajal and Schiff by email for comment on Tuesday afternoon.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.