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Debt-Free College Act of 2023
12/15/2023, 3:59 PM
Summary of Bill HR 3923
Under the Debt-Free College Act, students from families with an annual income of up to $125,000 would be eligible for this financial assistance. The bill also includes provisions to increase funding for Pell Grants, which are need-based grants for low-income students, and to reduce interest rates on student loans.
In addition, the legislation seeks to address the rising costs of textbooks and other educational materials by providing funding for open educational resources and other initiatives to reduce these expenses for students. Overall, the Debt-Free College Act of 2023 aims to make higher education more accessible and affordable for all students, regardless of their financial background. The bill is currently being debated in Congress, with supporters arguing that it is a necessary step towards ensuring that all students have the opportunity to pursue a college education without being burdened by overwhelming debt.
Congressional Summary of HR 3923
Debt-Free College Act of 2023
This bill establishes measures to cover the unmet financial need of students who are enrolled at certain institutions of higher education (IHEs). Unmet financial need refers to the difference between a student's cost of attendance and the student's student aid index, plus any federal, state, and local sources of grant aid. In addition, the bill makes certain Dreamer students (i.e., students who have been granted Deferred Action for Childhood Arrivals status) eligible for federal financial aid.
First, the bill requires the Department of Education (ED) to award grants for state-federal partnerships with a goal of providing debt-free college for all eligible students at in-state public IHEs. Eligible student refers to an individual who (1) is enrolled or is eligible to enroll in an in-state public IHE, and (2) completes a Free Application for Federal Student Aid (FAFSA) or demonstrates eligibility for a Federal Pell Grant through institutional financial-aid eligibility forms.
Next, the bill requires ED to award grants to historically Black colleges and universities and minority-serving institutions to cover the unmet financial need of enrolled students.
ED must establish an office to administer grants and provide oversight.
In addition, the bill makes Dreamer students who entered the United States before the age of 16 and who meet certain educational criteria eligible for federal student aid.
