Section 1 Short title
This Act may be cited as the “Degrees Not Debt Act of 2024”.
Degrees Not Debt Act of 2024
A BILL
To increase the total maximum Federal Pell Grant, and for other purposes.
Sec. 2 Increase in the maximum amount of a Federal Pell Grant
Award year 2024–2025— Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended—
in clause (i)(I), by striking “clause (iv)(II)” and inserting “clause (v)(II)”;
in clause (ii)(I), by striking “clause (iv)(II)” and inserting “clause (v)(II)”;
in clause (iii)—
in the header, by inserting “through award year 2023–2024” before the period; and
by inserting “through award year 2023–2024” after “subsequent award year”;
by redesignating clause (iv) as clause (v); and
by inserting after clause (iii) the following:
“(iv) Award year 2024–2025—For award year 2024–2025, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to—
“(I) $14,800; reduced by
“(II) the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year; and
“(III) rounded to the nearest $5.”
Award year 2025–2026 and subsequent award years—
Amendment to award amount— Section 401(b)(5)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and section 102(b)(1)(A) of the FAFSA Simplification Act Technical Corrections Act (division R of Public Law 117–103), is amended to read as follows:
“(A)
“(i) Award years 2024–2025 and 2025–2026—For award years 2024–2025 and 2025–2026, the total maximum Federal Pell Grant award per student shall be equal to $14,800, reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.
“(ii) Subsequent award years—For award year 2026–2027, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the amount that is equal to $14,800, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, then reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.”
Definition— Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended—
in subparagraph (E), by striking “and” after the semicolon;
in subparagraph (F), by striking the period and inserting “; and”; and
by adding at the end the following:
“(G) the term annual adjustment percentage as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year.”
Effective date— The amendments made by this subsection shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and in accordance with section 701(b) of such Act, as amended by section 102(a) of the FAFSA Simplification Act Technical Corrections Act (division R of Public Law 117–103) (including the authorization provided under section 102(c)(1)(A) of such Act).