Biden could slash student debt in half for the average borrower if Congress doubles the Pell Grant, report finds
The Pell Grant, which is a form of federal financial aid given to low-income students, currently gives a maximum of $6,495 per year. But Democrats’ $3.5 trillion reconciliation bill includes a plan to raise that award, and a new report found that if Congress succeeds in doubling it, the vast majority of borrowers will see their student debt cut in half.
The Gender Equity Policy Institute — a nonprofit dedicated to advancing gender equity — found that if Congress doubles the Pell Grant award to $13,000, borrowers with an average student debt load of $33,342 will see their debt cut in half or more. Bachelor’s students who receive the maximum award will see a 79% reduction in their debt, and community college students who receive the maximum award will graduate debt-free, according to the report.