Proposed Pell Grant Cuts Could Shut Thousands of Colorado Students Out of College

Proposed federal budget cuts to the Pell Grant program are raising alarm among education leaders and students in Colorado, where more than 70,000 college-goers depend on this aid to afford higher education. Advocates warn the changes could severely limit access for low-income students, forcing many to cut back on classes—or leave school altogether.

📉 What’s Changing in the Pell Grant Program?

The House GOP’s 2026 budget proposal includes sweeping changes to student financial aid. If passed, the following cuts would reshape the Pell Grant system:

Increased credit requirements: Students would need to complete 30 credits per year (up from 24) to receive full Pell aid—an impossible pace for many who work or care for family.

Cuts to part-time eligibility: Students taking fewer than six credits would lose eligibility, unless they’re in job-focused certificate programs.

Maximum grant reduction: The top award would be slashed by nearly $1,700, dropping from $7,395 to approximately $5,710.

Loss of supplementary aid: The bill proposes eliminating Federal Work-Study and Supplemental Educational Opportunity Grants (FSEOG)—both of which support students with the greatest financial need.

These changes come as the Pell program faces a projected $2.7 billion deficit in 2025, ballooning to nearly $10 billion by 2027 if no new funding is secured.

🎓 What This Means for Colorado

Colorado students would be hit especially hard. Over 70,000 low-income students statewide received Pell Grants last year. If the bill passes:

Thousands would be forced to take more credits per semester—a heavy burden for those juggling jobs or childcare.

Many could lose access to any Pell support, particularly those attending part-time or working through school.

At the University of Colorado system, nearly 12,000 undergraduates received over $60 million in Pell funding in 2023–24. Schools worry enrollment will drop if grants shrink.

Students like Daniela Ibarra, a junior balancing classes and a small business, say the new rules could make finishing college unaffordable.

“If I have to take 15 credits just to keep my aid, I’ll have to quit work—or drop out,” she said.

🧭 A Growing Backlash

Colorado’s congressional delegation, including Senators Michael Bennet and John Hickenlooper, has condemned the proposal. Over 100 national education and civil rights groups have signed letters urging Congress to reverse course, warning that the plan threatens college access for millions of low-income, first-generation, and working students.

Education leaders note that previous Pell budget shortfalls led to severe rollbacks—such as eliminating summer eligibility and capping the number of eligible semesters.

⚠️ Ripple Effects Beyond the Classroom

Enrollment declines at public colleges, especially community colleges

Increased student debt as families turn to private loans

Workforce shortages, particularly in education and healthcare

Strain on state financial aid systems, already stretched thin

🔍 What Happens Next?

The bill now heads to the U.S. Senate, where Democrats have vowed to fight back.

Colorado advocacy groups, including the Denver Scholarship Foundation and DSST Public Schools, are organizing campaigns to protect student aid.