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How Trump administration’s budget affects UTA Pell Grant recipients

Jame Nguyen has been financially preparing for his freshman year at UTA. His father is unable to work, and his mother doesn’t have a high-paying job. When he starts studying industrial engineering in the fall, Nguyen will receive the maximum Pell Grant of $7,395. “It's definitely a lot helpful,” he said. “But it also made me realize, ‘Dang, college is expensive,’ and that it's a real financial toll on my family and me.” Nguyen’s maximum amount, however, will soon change. He is one of the tens of thousands of UTA Pell Grant recipients who will be affected by changes to the program in President Donald Trump’s One Big Beautiful Bill Act. UTA leaders are bracing for an impact, too. Starting in the 2026-27 academic year, the maximum Pell Grant award will be $5,710 — a $1,685 decrease and the lowest amount in more than a decade. The cut will be “devastating” as the maximum amount has remained steady for three years, said Karen Krause, UTA’s executive director of financial aid. For the fall 2024 semester, 75.1% of recipients at UTA qualified for the maximum federal Pell Grant amount. “There just are pieces of this that we're not going to know for a while, and that's frustrating,” Krause said. “And I know it's frustrating. It's frustrating for us too.” Roughly 40% of undergraduate students nationwide rely on Pell Grants, which are given to those who demonstrate financial need on the Free Application for Federal Student Aid. Work-study funds earned through part-time jobs often help cover additional education expenses. The Pell Grant is the largest source of grant aid in Texas. More than 480,000 recipients in the state — 34% of enrolled students — will be affected, according to The Education Trust, an organization advocating for low-income Black and Latino students. The American Council on Education estimated the state could face financial aid losses between $353 million and $493 million. The budget, signed by Trump on July 4, includes provisions that provide $10.5 billion to stabilize the program and leaves out a requirement from the original House version that would have required students to take 15 credits per semester instead of 12. The One Big Beautiful Bill Act was approved with only Republican support. Other changes to Pell Grant eligibility include excluding those who receive a full-ride scholarship to a university and adding individuals who enroll in workplace training programs. Lawmakers also changed the student aid index, a formula used to calculate students’ Pell Grant eligibility. A student is now ineligible if their student aid index is more than double the maximum grant amount, higher education expert Mark Kantrowitz said. Almost all of UTA’s current Pell Grant recipients remain eligible under the double student aid index requirements, Krause said. Now the student aid index takes into account families’ foreign income, which was previously excluded. If a student has a family farm that meets certain criteria or a small family business, they can be excluded from adding those to the Pell Grant calculation, Krause said. ‘So many unknowns right now’ As the Pell Grant changes, UTA anticipates an overall tighter fiscal situation. President Jennifer Cowley recently announced the university is bracing for budget cuts due to decreased federal funding. Students without legal status may not be eligible for in-state tuition. The recent travel ban may also push students to choose a different country for their education. “At this juncture, it's just premature to know what options the university might be able to explore and implement,” university spokesperson Joe Carpenter said. Krause said multiple departments at UTA are monitoring state and federal changes to financial aid. Her team will continue to provide workshops and presentations to help students and parents keep track of updates. Also, students submitting documents by deadlines is becoming even more important, she said, as it helps UTA to manage its funds. The good news is, Krause said, no financial change, including to Pell Grants, is expected for the 2025-26 academic year. As for 2026-27? “I don't think we're ready to make that kind of a proclamation to say, ‘OK, we're going to replace X dollars’ or anything like that because there's just so many unknowns right now,” Krause said. Nguyen, who took a gap year after high school and is taking 15 credit hours for his first semester, said he doesn’t have the experience yet to know if he’s ready for the workload. But his friends are pushing him to pursue education. His boss already promised support. So, he’s going for it. He’s looking for other resources to pay the remaining tuition amount and also to prepare for the changes to the maximum grant amount in the 2026-27 academic year. His mother also agreed to help. “It's just —” he said, pausing. “I'll try to find any way I could help my mom not have to chip in.” @DangHLe news-editor.shorthorn@uta.edu

Students walk across campus Aug. 21, 2023, outside the University Center.

Students walk across campus Aug. 21, 2023, outside the University Center.

Jame Nguyen has been financially preparing for his freshman year at UTA. His father is unable to work, and his mother doesn’t have a high-paying job.

When he starts studying industrial engineering in the fall, Nguyen will receive the maximum Pell Grant of $7,395.

“It's definitely a lot helpful,” he said. “But it also made me realize, ‘Dang, college is expensive,’ and that it's a real financial toll on my family and me.”

Nguyen’s maximum amount, however, will soon change. He is one of the tens of thousands of UTA Pell Grant recipients who will be affected by changes to the program in President Donald Trump’s One Big Beautiful Bill Act. UTA leaders are bracing for an impact, too.

Starting in the 2026-27 academic year, the maximum Pell Grant award will be $5,710 — a $1,685 decrease and the lowest amount in more than a decade.

The cut will be “devastating” as the maximum amount has remained steady for three years, said Karen Krause, UTA’s executive director of financial aid. For the fall 2024 semester, 75.1% of recipients at UTA qualified for the maximum federal Pell Grant amount.

“There just are pieces of this that we're not going to know for a while, and that's frustrating,” Krause said. “And I know it's frustrating. It's frustrating for us too.”

Made with Flourish

Roughly 40% of undergraduate students nationwide rely on Pell Grants, which are given to those who demonstrate financial need on the Free Application for Federal Student Aid. Work-study funds earned through part-time jobs often help cover additional education expenses.

The Pell Grant is the largest source of grant aid in Texas. More than 480,000 recipients in the state — 34% of enrolled students — will be affected, according to The Education Trust, an organization advocating for low-income Black and Latino students. The American Council on Education estimated the state could face financial aid losses between $353 million and $493 million.

The budget, signed by Trump on July 4, includes provisions that provide $10.5 billion to stabilize the program and leaves out a requirement from the original House version that would have required students to take 15 credits per semester instead of 12.

The One Big Beautiful Bill Act was approved with only Republican support.

Other changes to Pell Grant eligibility include excluding those who receive a full-ride scholarship to a university and adding individuals who enroll in workplace training programs.

Lawmakers also changed the student aid index, a formula used to calculate students’ Pell Grant eligibility. A student is now ineligible if their student aid index is more than double the maximum grant amount, higher education expert Mark Kantrowitz said.

Almost all of UTA’s current Pell Grant recipients remain eligible under the double student aid index requirements, Krause said.

Now the student aid index takes into account families’ foreign income, which was previously excluded.

If a student has a family farm that meets certain criteria or a small family business, they can be excluded from adding those to the Pell Grant calculation, Krause said.

Made with Flourish

‘So many unknowns right now’

As the Pell Grant changes, UTA anticipates an overall tighter fiscal situation.

President Jennifer Cowley recently announced the university is bracing for budget cuts due to decreased federal funding. Students without legal status may not be eligible for in-state tuition. The recent travel ban may also push students to choose a different country for their education.

“At this juncture, it's just premature to know what options the university might be able to explore and implement,” university spokesperson Joe Carpenter said.

Krause said multiple departments at UTA are monitoring state and federal changes to financial aid. Her team will continue to provide workshops and presentations to help students and parents keep track of updates. Also, students submitting documents by deadlines is becoming even more important, she said, as it helps UTA to manage its funds.

The good news is, Krause said, no financial change, including to Pell Grants, is expected for the 2025-26 academic year.

As for 2026-27?

“I don't think we're ready to make that kind of a proclamation to say, ‘OK, we're going to replace X dollars’ or anything like that because there's just so many unknowns right now,” Krause said.

Made with Flourish

Nguyen, who took a gap year after high school and is taking 15 credit hours for his first semester, said he doesn’t have the experience yet to know if he’s ready for the workload.

But his friends are pushing him to pursue education. His boss already promised support.

So, he’s going for it. He’s looking for other resources to pay the remaining tuition amount and also to prepare for the changes to the maximum grant amount in the 2026-27 academic year. His mother also agreed to help.

“It's just —” he said, pausing. “I'll try to find any way I could help my mom not have to chip in.”

@DangHLe

news-editor.shorthorn@uta.edu

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