The Senate Reconciliation Bill would make scholarship award displacement a law

The Senate has introduced the reconciliation bill that would make scholarship displacement a federal law, with specific implications for recipients of the Federal Pell Grant. One of the provisions in the bill explicitly states: " A student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from sources other than under this title, including other Federal sources, States, institution of higher education or private sources, in amount that equal or exceeds tthe student's cost of attendance for such period."

This provision means that if a student secures financial assistance, whether from scholarships, state programs, government entities, military entities, or private donors, that matches or surpasses their institution's cost of attendance, they would become ineligible to receive a Pell Grant. This provision will disadvantage students who need the funding the most. Many colleges and universities already calculate the cost of attendance in a way that understates the true expenses students face. The consequences would potentially increase students' reliance on student loans or even force them to delay or abandon their education altogether.

The bill also raises several serious concerns. It aims to cut back the graduate student loan program, get rid of the SAVE and Income-Driven Repayment (IDR) plans, and weaken the Borrower Defense program.

We are deeply disappointed by the passage of this bill and remain committed to fighting for all students to receive the scholarships and external aid they have rightfully earned.