Proposed Pell Grant Cuts Could Have Outsized Impact on Online, Adult Students
Credit: Kevin Carter / Getty Images News- The “One Big Beautiful Bill Act” that passed the House would increase the number of credits required to be a full-time student to 30 credits per year.
- This change could cause many part-time students to lose access to Pell Grants.
- Experts told BestColleges the House proposal would affect adult learners and students taking online courses the most.
- The Senate’s version of the bill does not alter the Pell Grant eligibility requirements.
For the first time in over a decade, Congress may make eligibility changes to the federal government’s biggest college grant program.
Lawmakers are considering sweeping changes to who would qualify for a Pell Grant, which helps over 6 million low- and middle-income students afford a college education each year.
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The proposed changes in the “One Big Beautiful Bill Act” passed by the U.S. House of Representatives on May 22 center on increasing the number of credits students must enroll in each year to qualify as full time and eliminating the grant completely for students enrolled less than half time. The changes would take effect at the start of the 2026-27 academic year.
The U.S. Senate, however, on June 10 released its version of the bill that does not alter the Pell Grant eligibility requirements. As the House and Senate reconcile their versions of the bill, the future of the critical federal financial aid program remains unclear.
Advocates and experts BestColleges spoke with said the proposal passed by the House would impact two student groups more than most: adult learners and primarily online students.
“It’s going to have a disproportionate impact on adult students and students who need to work to support themselves,” Antoinette Flores, director of higher education accountability and quality at New America, told BestColleges. “Those are the students who can’t necessarily take extra credits.”
| Current Requirement | House-Proposed Requirement | |
|---|---|---|
| Full-time credits per semester | 12 | 15 |
| Full-time credits per academic year | 24 | 30 |
| Part-time credits per semester | 6 | 7.5 |
| Part-time credits per academic year | 12 | 15 |
Jordan Wicker, senior vice president of regulatory and legislative affairs at Career Education Colleges and Universities (CECU), said one of his chief concerns is not that students will get smaller Pell Grant awards but that students will opt out of college altogether if forced to take more credits.
“What you’re really doing by changing these policies on the margin,” he said, “is not necessarily going to affect the students making the decisions [between] full time or part time, but between part time or not going at all.”
By the Numbers:
- 20% of Pell Grant recipients would completely lose eligibility after falling below the half-time threshold.
- Lowest-income students would see awards reduced by about $1,500 due to the new full-time definition.
- At least one-fifth of community college students would completely lose their Pell Grant.
- Approximately 28.5% of recipients enrolled in 24-29 credits would no longer qualify as full time.
Part-Time Students Expected to Face Difficulties
The House proposal severely hampers part-time students’ ability to qualify for Pell Grants.
Students would need to take at least 15 credits per year instead of 12 to be considered part-time.
According to an analysis from the Center for American Progress (CAP), approximately 20% of Pell Grant recipients enroll in 14 or fewer credits each year. That share is much higher (32.9%) at community colleges.
The part-time provision could impact approximately 1.4 million students, CAP found.
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Students can theoretically enroll in more credits each year to retain their Pell Grant status, explained Kyle Southern, assistant vice president of higher education quality at The Institute for College Access and Success (TICAS).
However, part-time students tend to juggle school with other responsibilities like work and childcare, making it less feasible for them to take more classes each year.
“At a certain point, this becomes a math problem,” he said. “There are limited hours in a week. Where do you want [students] to cut back?”
Madison Weiss, senior policy analyst at CAP, shared this concern.
“Many adult learners who attend community colleges already work and/or care for children,” she said. “They may be unable to take on additional coursework and, as a result, may need to take on additional student loans to make up for their lost grant aid.”
A recent report from MDRC found that Black and Hispanic students tend to enroll part time at higher rates than white students. Approximately 80% of part-time students are 25 years or older.
Wicker added that institutions may try to change course offerings to make it easier for students to maintain their part- or full-time status. Still, institutions are limited in how much they can change course offerings and the credit value of classes on such short notice.
Potential Impacts On Online Student
While community colleges enroll many part-time students, so do online-only institutions. Distance learning is an appealing option for many working students who may only be able to juggle two courses per semester, Wicker said.
A BestColleges analysis of the online-only colleges with the highest enrollments found that most students were enrolled part time:
| Institution | Percent Enrolled Part Time | Percent Awarded Pell Grant |
|---|---|---|
| Southern New Hampshire University | 69% | 48% |
| Western Governors University | 0% | 35% |
| University of Maryland Global Campus | 78% | 30% |
| Arizona State University Digital Immersion | 61% | 38% |
| American Public University System | 92% | 25% |
| University of the People | 52% | 0% |
| Purdue University Global | 83% | 48% |
| Capella University | 71% | 37% |
| Columbia Southern University | 40% | 21% |
| Excelsior University | 100% | 25% |
According to the Voice of the Online Learner 2024 report, approximately 84% of online learners work while pursuing their degree or credential. Two-thirds of respondents said they chose an online program over an on-campus one because distance learning gives them a better balance to take classes while working or juggling other responsibilities.
Wicker said he expects Pell Grant eligibility changes to impede access to online programs.
A Fine Line Between Full and Part Time Status
Many potential issues for part-time students will also affect previously considered full-time students.
Pell Grant recipients won’t completely lose access if they fall under the 30-credit threshold, Southern explained. Students will receive reduced awards if they take 12-14 credits per semester instead of the required 15 credits.
Moreover, many advisors recommend that students take only 12 credits in some semesters. This typically applies to students taking an especially difficult course that may require more of their time and attention to pass.
In these situations, Wicker said, students may forgo the maximum Pell Grant and instead settle for a lesser award.
The result? Students could find themselves needing to take out student loans to make up the difference that Pell Grants otherwise would have covered.
The same student groups that have historically been underrepresented in higher education — low-income students, students of color, students with disabilities — could be harmed by these eligibility changes, Southern said.
“It actually would be a pretty monumental change,” he said.
Southern added that the full-time requirement would have an outsized impact on incarcerated college students, who became eligible for Pell Grants in July 2023. These students have limited options to increase their credit load, as they can only access the courses and programs provided to them.
“Just as the opportunity emerges,” he said, “what this approach would do is just yank that right away.”