States could help students attend public college without new debt

The Education Secretary would award grants to states that apply to join a partnership for debt-free college at in-state public colleges. Eligible students would include people enrolled or eligible to enroll at a public college in their state who complete the federal student-aid application or show Pell Grant eligibility through an approved state or college form. A state would need an approved five-year plan and would need to show yearly progress. States would have to maintain or increase specified higher-education support, cap tuition and fees with yearly Consumer Price Index increases allowed, preserve access for low-income and underserved students, and cover students’ unmet need with grant funds. The bill authorizes $84 billion for fiscal year 2027 and additional amounts for fiscal years 2028 through 2036, but grants would depend on appropriations and could be reduced if funding is insufficient. A state would aim to provide debt-free college within five years of its approved plan; grant funds would be awarded by fiscal year, beginning with fiscal year 2027 if funding is provided.

The Education Secretary would award five-year grants to eligible private nonprofit colleges to cover students’ unmet financial need. Eligible institutions would include qualifying historically Black colleges, tribal colleges, and certain private nonprofit minority-serving colleges where at least 35 percent of students qualify for Pell Grants, with an exception for recently converted for-profit colleges. Colleges would need to apply and submit plans for using the funds. Ninety-five percent of each grant would cover need-based aid for students who have not earned a bachelor’s degree, and 5 percent could support facilities, faculty, student services, and related activities. Participating colleges would have to cap tuition and fees subject to Consumer Price Index increases, maintain specified spending, aid, and low-income enrollment levels, and could lose eligibility for violating grant terms. The bill authorizes $3 billion for fiscal year 2027 and additional amounts for fiscal years 2028 through 2036, subject to appropriations. Each grant would last five years; fiscal year 2027 would be the first authorized funding year if money is provided.

Dreamer students meeting the bill’s requirements would be allowed to qualify for federal student aid under Title IV. A Dreamer student would generally have entered the United States before age 16, listed U.S. secondary schools attended, and meet one of several education, deferred-action, or military-service requirements. The person would need a U.S. high school diploma or equivalent, or be on track to complete one before the next academic year, and would generally need a higher-education degree or at least two years toward a bachelor’s degree with satisfactory progress. Alternatively, the person could qualify through eligibility for certain deferred-action policies or at least four years of uniformed service with an honorable discharge if discharged. The Education Secretary would set rules allowing hardship waivers for the age-of-entry or school-attendance requirements when compelling circumstances exist. The eligibility rules would apply when a qualifying student seeks Title IV aid after the provision takes effect; the supplied text does not state an effective date.