News

Feds will restore grant funding for thousands of students burned by for-profit college closures

Publication date: Oct 31, 2016

By Danielle Douglas-Gabriel, October 28, 2016

The Department of Education is resetting the clock on Pell grant eligibility for students who burned through the federal aid to cover costs at colleges that closed, a move that will help tens of thousands of people complete their education at another school.

Pell, a form of federal financial aid for families typically earning less than $60,000 a year, is available only for six years or 12 semesters. Say a student pursuing a bachelor’s degree uses three years worth of that aid before his college closes. If that student is unable to transfer his credits and has to start over somewhere else, he would not have enough Pell money left to cover the degree.

That scenario has played out for thousands of students affected by the closures of Corinthian Colleges and ITT Technical Institutes in the past two years. Members of Congress urged the Education Department to restore Pell eligibility to those students, but the agency said it did not have the authority. That led Senate Democrats to introduce legislation that ultimately stalled.

Read the full article at The Washington Post.

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