In a new policy brief, On-Time Pell: Maintain Access, Ensure Completion, Complete College America (CCA) outlines a plan for the creation of an “on-time” status for the federal Pell Grant Program. Under the proposed plan, “on-time” students would be funded for 30 credits per year, incentivizing on-time completion and putting an end to the Pell penalty currently facing students who choose to take the credits necessary to graduate on time.
The new status would enable both full-time and part-time students to take 30 credits per year in whatever enrollment combination works for them, ultimately boosting traditionally low completion rates for Pell recipients and better utilizing federal funding. Currently, the Pell Grant covers up to 12 credits per term or 24 credits per year, but to graduate on time, students must complete 30 credits per year. Students who currently choose to enroll in 30 credits are forced to cover the remaining six credits without financial support from the Pell Grant.
Students must enroll in at least 12 credits to be considered full-time, but too many students and advisors aim only for this minimum requirement. States and institutions also adhere to this de-facto standard of 12 credits for their aid policies, causing ramifications that stretch beyond the Pell program.
“It’s encouraging that new policies are being explored in Washington that expand opportunities for Pell recipients, but for Pell to be truly built for completion, we have to pursue a change that incentivizes taking 30 credits a year,” said Stan Jones, president of Complete College America. “Students should not be financially penalized for trying to graduate on time. Our plan provides a status that puts on-time completion within reach.”
The CCA plan would fund “on-time” status students at 30 credits per year, allowing them to draw down their total lifetime Pell eligibility of 144 credits more quickly than the current annual cap of 24 credits permits. Adding an “on-time” status increases the likelihood students will complete their degrees, saves students money long term, and ensures taxpayers receive a better return on investment. The new status does not:
- change the official annual maximum Pell award or devalue Pell.
- require an increase to the total per-student lifetime Pell eligibility amount.
- change the definitions for full-time or part-time or harm these Pell groups.
“Students who take less than 15 credits a semester are already on the 5-year plan,” said Jones. “This “on-time” status benefits students financially, increases their likelihood of obtaining a degree, and sends a message to state and institutional leaders that we must do more to encourage on-time completion,” said Jones.
