Aid at risk for California students receiving Pell Grants

Thousands of Bay Area students could soon face a new hurdle when it comes to paying for college: deep cuts to federal financial aid. Republican lawmakers in Washington, D.C., are considering proposals to cap some federal loans and dramatically limit Pell Grants, which have for years served as a lifeline for low-income students.

More than 700,000 California students rely on the Pell Grant, which does not need to be repaid. “What is being proposed goes against pretty much all of the evidence about college affordability and college access,” said Christopher Nellum, executive director of the Oakland-based education research and advocacy group EdTrust-West. “We’re bracing for fewer students enrolling in college in the state. In particular the Bay Area, given what the data tells us, we’ll see fewer students of colour. We’re going to see fewer low-income students, perhaps fewer parenting students.”

While the exact local impact of the proposals is unclear, leaders from the California State University, University of California, California Community Colleges and Association of Independent California Colleges and Universities wrote to Congress this week imploring lawmakers to reject cuts to the program and prioritise funding for students. A bill passed by the Republican-led US. House would cap graduate student loans, cut income-driven loan repayment options and eliminate schools’ aid if students’ earnings fall below a certain threshold. The bill also includes deep cuts to the Pell Grant program and makes part-time students ineligible for the funds.

The Senate was expected to vote on its own version of the bill, which did not include changes to Pell Grant eligibility. After that, the House and Senate would need to negotiate a compromise to send to President Donald Trump’s desk. Trump has called for widespread cuts to education spending. “Individually, these policies are severely damaging,” the letter said. “Collectively, they represent an existential threat to this vital federal program that serves half of all undergraduate students in California or 14.3% of all Pell Grant recipients nationwide.” Nellum said the proposed cuts are part of the Trump administration’s larger attack on public education.

“I can’t make sense of it, given everything I’ve seen over almost two decades of doing this work,” he said. “I can’t imagine a more legitimate investment than in education. I don’t know who this benefits.” The potential changes come as California universities are still reeling from several other Trump administration policies, including the cancellation of millions of dollars in research grants and a crackdown on diversity, equity and inclusion programmes.

Currently, students who take at least 24 credits are considered full-time students, but under the House’s proposal, they would need to take 30 credits a year to be considered full-time and receive the maximum Pell Grant, which is $7,395 a year. Students who take fewer than 15 credits a year would no longer be eligible for the funds. Trump’s proposed budget for the 2026 fiscal year would also decrease the maximum Pell Grant award to $5,710. For many California students, the existing funding of Pell Grants is already insufficient to cover the costs of college. Proposed cuts, which would take effect this coming school year, have sent them scrambling for scholarships or packing their schedules with additional classes to avoid dropping out or needing to take out student loans. Saidy Reyes, a rising senior urban studies major at UC Berkeley, transferred to Cal after completing two years at a community college. A first-generation college student from Marin County, Reyes said the maximum Pell Grant award was just enough to cover her education at community college but she still needed a part-time job to afford her basic needs.

“Now that I’m at Berkeley, the whole story is different,” Reyes said. “I live on my own now, and I feel like it’s not enough. And Berkeley is a really expensive place to live to begin with.” For a new student starting in the 2025-26 school year, Cal estimates the total cost of attendance, including tuition, living and personal expenses, is $51,904. Nellum, of EdTrust-West, said four in 10 Bay Area students don’t have enough savings to cover three months of their basic expenses.

“We know the Pell Grant over the last three or four decades has already struggled to keep pace with the true cost of college,” Nellum said. “So any cut to that program for students who have financial limitations or are unable to pay for the true cost of college, it’s only going to make their situation worse.” Benjamin Diaz, a rising political science junior at UC Santa Cruz, said that despite receiving the full Pell Grant amount in his freshman year, he still had to pay around $3,000 out-of-pocket each quarter. As a full-time student, Diaz said he wouldn’t be affected by the House-proposed eligibility cuts, but he worries about the potential decrease to the maximum award. “I probably won’t be able to afford to pay for college and attend,” Diaz said.

The issue is particularly pressing in the UC system, which said it enrolled a higher percentage of Pell Grant recipients among all its undergraduate students — 33% — than any other top research university in the country for the 2022-23 school year, the most recent data available. UC Berkeley said that under the proposed changes to Pell Grant eligibility, about 50% of the university’s recipients would be reclassified as part-time and see their awards reduced. The school said it will explore increased fundraising efforts for student aid to help offset any potential federal reductions.