H.R. 8618: College Affordability and Accessibility Act

The College Affordability and Accessibility Act aims to enhance the Federal Pell Grant program, which provides financial assistance to eligible low-income college students. The bill proposes several key changes:

1. Increase in Federal Pell Grant Amounts

The legislation proposes to increase the total maximum Federal Pell Grant award for eligible students:

• For the award years 2026-2027 and 2027-2028, students would receive a maximum grant of $14,800.
• For the award year 2028-2029 and subsequent years, the maximum grant amount will remain at $14,800 but will be adjusted annually based on the percentage change in the Consumer Price Index (CPI), ensuring that it reflects inflation. However, this amount may be reduced based on the maximum grant determined in the last appropriations act for that award year.

2. Extension of Eligibility for Grants

The bill expands the eligibility period for students to receive Federal Pell Grants:

• Students will not only be eligible as undergraduates but also as postbaccalaureate students. This includes individuals pursuing a first postbaccalaureate course of study at eligible institutions.
• The duration for which students can receive Federal Pell Grants is also extended from 12 semesters to 16 semesters, or the equivalent, providing more time for students to complete their degrees.

3. Effective Date

The amendments introduced by this bill are set to take effect on July 1, 2026, and will apply to each award year beginning on or after that date.

Relevant Companies

• EDU (New Oriental Education & Technology Group Inc.) - As a prominent educational institution in China, this company may see changes in enrollment and funding models that could either enhance or challenge its business operations due to increased competition for U.S. students.
• APOL (Apollo Education Group) - This group, which operates various colleges and universities, could be impacted by changes in student financial aid availability affecting enrollment numbers and revenue.