Pell Grants lack accountability –20% graduation rate leaves students in debt and universities with profit

With approximately , higher education is an expectation for adults in the United States. By working hard in college, people hope to. However, affording the high price tag of these aspirations often requires loans, which can disadvantage low-income students. College financing programs, such as Pell Grants, intend to respond to the struggles of underprivileged students by offering financial support. Unfortunately, a lack of accountability in the Pell Grant program means that the financial support does not always translate into a college degree, especially when compared to their non-Pell grant receiving peers. Students from a lower socioeconomic background have historically struggled to afford college. To address this problem, the Pell Grant was created in 1972. , Pell Grants subsidize higher education for students from low-income backgrounds. Currently, these grants are the for college students, awarding Calculating the level of aid considers expected family contribution (EFC), estimated cost of college, enrollment status (full- or part-time), and program duration. Applications are coordinated through FAFSA, , and over Recipients of a Pell Grant are not burdened by the requirement to pay back the cost. However, the grants do not cover college expenses in full, and recipients often take on debt to supplement costs. [Graph omitted] among four-year college programs casts doubt on the Pell Grant program’s effectiveness. Across each institution—public, private nonprofit, and private for-profit—non-Pell receiving students are more likely to graduate than their Pell-receiving counterparts. Overall, students who attend a for-profit private college are also far less likely to graduate. Since Pell Grants are typically disbursed on a semester basis, funding may cover expenses for students unable to graduate. This scenario creates a flow of money from the government to the institution, with uncertain benefit to students. In these instances, the college profits off of Pell Grant students who cycle through with subsidized tuition and never obtain a degree. The financing and structure of our higher education system warrants reexamination. The country’s largest source of college funding, the Pell Grant, strives to increase graduation rates and college affordability. This mission is unaccomplished. Pell Grants require reassessment to make college a more viable option for low-income students. Alterations are needed to ensure that recipients benefit from the taxpayer-funded grants, rather than the colleges and universities they attend. Currently, Pell Grants lack a system of accountability—for students, universities, and the government—and strike the question of who is benefiting from the taxpayer money portioned for education.