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Trump isn’t cutting Pell Grants, after all − but other changes could complicate financial aid for some students

Pell Grants, crucial for college funding without repayment, face changes amid rising tuition and student debt. Recent policy shifts aim to limit borrowing and expand assistance for short-term training, impacting choices for prospective students regarding affordability and program selection.

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Pell Grants
Amid a complicated federal financial aid system, Pell Grants are the largest source of federal funds for college that students do not have to repay.
iStock/Getty Images Plus

Jennifer L. Steele, American University

As an education researcher who has studied the economic returns of higher education, I know that college degrees remain cost-effective investments for most students.

But college tuition has risen at roughly twice the rate of inflation during the past two decades, and federal student debt climbed 500% to US$1.6 trillion during that same period.

The Biden administration sought to address this problem with plans that accelerated student loan forgiveness for lower-income borrowers with small balances, allowing debt cancellation after 10 years of repayment, instead of 20 or 25.

However, the courts blocked those efforts, and the Trump administration has taken a sharply different approach.

Guided by evidence that higher borrowing limits contribute to tuition increases, the tax breaks and spending cuts bill that President Donald Trump signed into law in July 2025 brings changes to the federal financial aid system that prospective higher education students should understand.

The Pell Grant – a need-based higher education grant from the U.S. Department of Education that, unlike a loan, does not need to be repaid – lies at the heart of the federal financial aid system.

While the Trump administration is slightly expanding people’s eligibility for Pell Grants, the new policies also aim to reduce the national student loan spiral by reducing limits on how much some students can borrow for their educations.

A young Black man wearing a blue blazer holds a yellow sign that says 'Cancel student debt' and walks with other people who hold signs.
Wisdom Cole, the national director of the NAACP Youth and College Division, marches with others in Washington, D.C., after the Supreme Court struck down President Joe Biden’s student debt relief program in June 2023.
Kent Nishimura/Los Angeles Times via Getty Images

Rising college costs and government involvement

The average annual cost of tuition, fees, room and board for a student at a four-year college in the U.S. in the 2022-23 school year was $30,884, according to the latest available Department of Education data.

But the cost of tuition alone varies dramatically between in-state rates for public colleges, which receive state funding, and private nonprofit colleges, which do not.

While the average annual tuition was $9,750 per year for in-state students at public four-year colleges in 2022-23, it reached $38,421 at private nonprofit colleges, even if a student lived at home and did not pay for room and board.

These prices are roughly two to 200 times those of 42 other countries across six continents that have high-quality education data – not including seven countries, including Sweden and Saudi Arabia, that essentially have free tuition.

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While many countries around the world subsidize tuition directly, the U.S. government focuses assistance toward individual students based on their financial need.

It does this through a combination of federal grants, loans and subsidies for campus jobs, all administered by the Department of Education.

In 2019-20, about 40% of the nation’s 17 million undergraduates received federal grants – mostly Pell Grants, according to the latest federal data.

Meanwhile, 34% of undergraduates and 39% of the country’s 3 million graduate students received federal loans during this same time period.

Roughly 5% of undergraduates received subsidized on-campus jobs through federal work study in the 2019-20 school year.

Changes ahead for Pell Grants

The U.S. government first awarded Pell Grants to students in 1973. They are designed to make college affordable for families, as determined by their income, family size and savings.

Historically, Pell Grants have focused just on undergraduates.

In 2022-23, about 75% of Pell funds went to students from families earning less than $40,000 per year.

Still, a family of four earning as much as $92,000 a year in 2024 would also qualify for a small Pell Grant in some circumstances.

A version of the Trump administration’s budget proposal for October 2025 through September 2026 called for reducing the maximum federal Pell Grant award to $5,710 a year from $7,395.

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This caused some observers to worry that the Trump administration would try to scale back federal Pell Grants, which offer $740 to $7,395 per year to students in the 2025-26 school year.

Instead, the budget bill shores up overall Pell Grant funding and holds grant amounts level with those of previous years. It also creates a new type of Pell Grant to support workers seeking short-term retraining in a particular industry.

The budget bill also introduces another new grant called the Workforce Pell Grant. Starting July 1, 2026, this program will make small Pell Grants available for students pursuing career training programs of eight to 15 weeks toward recognized credentials in “in-demand industry sectors or occupations,” even if students already have bachelor’s degrees.

Controversially, a new House of Representatives appropriations bill proposes to rename the Workforce Pell Grants as
Trump Grants.”

But whether or not Congress approves the renaming, the grants will for the first time make Pell funds available to people who need short-term training to stay current in the labor market.

This is particularly important as long-term unemployment rises among the college-educated, driven by federal layoffs as well as the growth of artificial intelligence.

The role played by federal student loans

Despite some of their advantages, Pell Grants cover only about a quarter of the total cost of college attendance. As a result, 83% of Pell Grant recipients also receive other forms of aid – mostly through federal direct loans, which must be repaid.

The average undergraduate direct loan borrower graduated with about $26,000 in federal debt in 2019-20.

Assuming the 6.08% interest rate on federal loans at that time, it would have cost a graduate $290 a month to repay the loans under the standard 10-year payment plan.

Even so, about 10% of student loan borrowers default, meaning they stop paying on their loans entirely.

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Loan default rates are higher among students who attended less-selective colleges and those who did not finish their degrees.

Under existing rules that are not changing under the Trump administration, undergraduates will still be able to borrow up to roughly $10,000 per year in federal direct loans, depending on how far along they are in school.

Graduate students, meanwhile, will still be able to borrow up to $20,500 per year.

New limits for part-time and graduate students

One important change following the Trump budget bill’s passage is that the Department of Education will pro-rate, or reduce, Pell Grant limits for students enrolled part time.

This means tuition at some higher-priced colleges may become unaffordable for part-time students.

This change will force some students to choose between enrolling part time in a low-tuition program or full time in a higher-tuition program.

The other change to federal borrowing limits pertains to graduate students.

The budget bill lowers the lifetime borrowing limit for graduate study from $138,500 to $100,000.

For students pursuing professional degrees such as law and medicine, the limit rises to $200,000.

But the law does away with a program for graduate students called PLUS Loans that now serves about 11% of graduate students, including about 40% of students seeking professional doctorates.

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These changes may make it more expensive for graduate students to receive a degree, which could steer them toward lower-priced programs.

A woman with dark hair and a black graduation cap with yellow flowers is seen in front of a crowd of people seated also wearing black caps.
An MIT graduate lines up to get her diploma in May 2025 in Cambridge, Mass.
Suzanne Kreiter/The Boston Globe via Getty Images

The effect for prospective students

As prospective students weigh their options, they should remember that most facets of federal financial aid remain unchanged.

Key changes aim at limiting high debt levels, specifically for part-time and graduate students and those attending high-tuition colleges when lower-priced institutions are readily available.

These changes may reroute some students from private to in-state colleges and from part-time to full-time study. Faced with increased price competition, some colleges may feel pressure to scale back costs through cuts to programs, services and amenities. For prospective students, such moves could reduce colleges’ luxuries but improve their affordability in the long run.

Jennifer L. Steele, Professor of Education, American University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Dive into “The Knowledge,” where curiosity meets clarity. This playlist, in collaboration with STMDailyNews.com, is designed for viewers who value historical accuracy and insightful learning. Our short videos, ranging from 30 seconds to a minute and a half, make complex subjects easy to grasp in no time. Covering everything from historical events to contemporary processes and entertainment, “The Knowledge” bridges the past with the present. In a world where information is abundant yet often misused, our series aims to guide you through the noise, preserving vital knowledge and truths that shape our lives today. Perfect for curious minds eager to discover the ‘why’ and ‘how’ of everything around us. Subscribe and join in as we explore the facts that matter.  https://stmdailynews.com/the-knowledge/

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What a bear attack in a remote valley in Nepal tells us about the problem of aging rural communities

A 71-year-old in Nepal’s Nubri valley survives repeated bear attacks as youth outmigration and rapid population aging leave fewer people to protect crops and homes—pushing bears closer to villages and raising urgent questions about safety, conservation rules, and rural resilience.

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A 71-year-old in Nepal’s Nubri valley survives repeated bear attacks as youth outmigration and rapid population aging leave fewer people to protect crops and homes—pushing bears closer to villages and raising urgent questions about safety, conservation rules, and rural resilience.
Dorje Dundul ponders a life living with increased risk of bear attacks. Geoff Childs, CC BY-SA

Geoff Childs, Washington University in St. Louis

Dorje Dundul recently had his foot gnawed by a brown bear – a member of the species Ursus thibetanus, to be precise.

It wasn’t his first such encounter. Recounting the first of three such violent experiences over the past five years, Dorje told our research team: “My wife came home one evening and reported that a bear had eaten a lot of corn from the maize field behind our house. So, we decided to shoo it away. While my wife was setting up camp, I went to see how much the bear had eaten. The bear was just sitting there; it attacked me.”

Dorje dropped to the ground, but the bear ripped open his shirt and tore at his shoulder. “I started shouting and the bear ran away. My wife came, thinking I was messing with her, but when she saw the wounds, she knew what had happened.”

Researchers Dolma Choekyi Lama, Tsering Tinley and I spoke with Dorje – a 71-year-old resident of Nubri, a Buddhist enclave in the Nepalese highlands – as part of a three-year study of aging and migration.

Now, you may be forgiven for asking what a bear attack on a septuagenarian has to do with demographic change in Nepal. The answer, however, is everything.

In recent years, people across Nepal have witnessed an increase in bear attacks, a phenomenon recorded in news reports and academic studies.

Inhabitants of Nubri are at the forefront of this trend – and one of the main reasons is outmigration. People, especially young people, are leaving for education and employment opportunities elsewhere. It is depleting household labor forces, so much so that over 75% of those who were born in the valley and are now ages 5 to 19 have left and now live outside of Nubri.

It means that many older people, like Dorje and his wife, Tsewang, are left alone in their homes. Two of their daughters live abroad and one is in the capital, Kathmandu. Their only son runs a trekking lodge in another village.

Scarcity of ‘scarebears’

Until recently, when the corn was ripening, parents dispatched young people to the fields to light bonfires and bang pots all night to ward off bears. The lack of young people acting as deterrents, alongside the abandonment of outlying fields, is tempting bears to forage closer to human residences.

Outmigration in Nubri and similar villages is due in large part to a lack of educational and employment opportunities. The problems caused by the removal of younger people have been exacerbated by two other factors driving a rapidly aging population: People are living longer due to improvements in health care and sanitation; and fertility has declined since the early 2000s, from more than six to less than three births per woman.

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These demographic forces have been accelerating population aging for some time, as illustrated by the population pyramid constructed from our 2012 household surveys in Nubri and neighboring Tsum.

A not-so-big surprise, anymore

Nepal is not alone in this phenomenon; similar dynamics are at play elsewhere in Asia. The New York Times reported in November 2025 that bear attacks are on the rise in Japan, too, partly driven by demographic trends. Farms there used to serve as a buffer zone, shielding urban residents from ursine intruders. However, rural depopulation is allowing bears to encroach on more densely populated areas, bringing safety concerns in conflict with conservation efforts.

Dorje can attest to those concerns. When we met him in 2023 he showed us deep claw marks running down his shoulder and arm, and he vowed to refrain from chasing away bears at night.

So in October 2025, Dorje and Tsewang harvested a field before marauding bears could get to it and hauled the corn to their courtyard for safekeeping. The courtyard is surrounded by stone walls piled high with firewood – not a fail-safe barrier but at least a deterrent. They covered the corn with a plastic tarp, and for extra measure Dorje decided to sleep on the veranda.

He described what happened next:

“I woke to a noise that sounded like ‘sharak, sharak.’ I thought it must be a bear rummaging under the plastic. Before I could do anything, the bear came up the stairs. When I shouted, it got frightened, roared and yanked at my mattress. Suddenly my foot was being pulled and I felt pain.”

Dorje suffered deep lacerations to his foot. Trained in traditional Tibetan medicine, he staunched the bleeding using, ironically, a tonic that contained bear liver.

Yet his life was still in danger due to the risk of infection. It took three days and an enormous expense by village standards – equivalent to roughly US$2,000 – before they could charter a helicopter to Kathmandu for further medical attention.

And Dorje is not the only victim. An elderly woman from another village bumped into a bear during a nocturnal excursion to her outhouse. It left her with a horrific slash from forehead to chin – and her son scrambling to find funds for her evacuation and treatment.

A woman in the foreground bendds over infront of a valley
A woman weeding freshly planted corn across the valley from Trok, Nubri. Geoff Childs, CC BY-SA

So how should Nepal’s highlanders respond to the increase in bear attacks?

Dorje explained that in the past they set lethal traps when bear encroachments became too dangerous. That option vanished with the creation of Manaslu Conservation Area Project, or MCAP, in the 1990s, a federal initiative to manage natural resources that strictly prohibits the killing of wild animals.

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Learning to grin and bear it?

Dorje reasons that if MCAP temporarily relaxed the regulation, villagers could band together to cull the more hostile bears. He informed us that MCAP officials will hear nothing of that option, yet their solutions, such as solar-powered electric fencing, haven’t worked.

Dorje is reflective about the options he faces as young people leave the village, leaving older folk to battle the bears alone.

“At first, I felt that we should kill the bear. But the other side of my heart says, perhaps I did bad deeds in my past life, which is why the bear bit me. The bear came to eat corn, not to attack me. Killing it would just be another sinful act, creating a new cycle of cause and effect. So, why get angry about it?”

It remains to be seen how Nubri’s residents will respond to the mounting threats bears pose to their lives and livelihoods. But one thing is clear: For those who remain behind, the outmigration of younger residents is making the perils more imminent and the solutions more challenging.

Dolma Choekyi Lama and Tsering Tinley made significant contributions to this article. Both are research team members on the author’s project on population in an age of migration.

Geoff Childs, Professor of Sociocultural Anthropology, Washington University in St. Louis

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Urbanism

The Building That Proved Los Angeles Could Go Vertical

Los Angeles once banned skyscrapers, yet City Hall broke the height limit and proved high-rise buildings could be engineered safely in an earthquake zone.

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Los Angeles once banned skyscrapers, yet City Hall broke the height limit and proved high-rise buildings could be engineered safely in an earthquake zone.
LA City Hall. Image Credit: TNC Network & Envato

How City Hall Quietly Undermined LA’s Own Height Limits

The Knowledge Series | STM Daily News

For more than half a century, Los Angeles enforced one of the strictest building height limits in the United States. Beginning in 1905, most buildings were capped at 150 feet, shaping a city that grew outward rather than upward.

The goal was clear: avoid the congestion, shadows, and fire dangers associated with dense Eastern cities. Los Angeles sold itself as open, sunlit, and horizontal — a place where growth spread across land, not into the sky.

And yet, in 1928, Los Angeles City Hall rose to 454 feet, towering over the city like a contradiction in concrete.

It wasn’t built to spark a commercial skyscraper boom.
But it ended up proving that Los Angeles could safely build one.


A Rule Designed to Prevent a Manhattan-Style City

The original height restriction was rooted in early 20th-century fears:

  • Limited firefighting capabilities
  • Concerns over blocked sunlight and airflow
  • Anxiety about congestion and overcrowding
  • A strong desire not to resemble New York or Chicago

Los Angeles wanted prosperity — just not vertical density.

The height cap reinforced a development model where:

  • Office districts stayed low-rise
  • Growth moved outward
  • Automobiles became essential
  • Downtown never consolidated into a dense core

This philosophy held firm even as other American cities raced upward.


How Los Angeles City Hall Proved Skyscrapers Could Be Built Safely

Why City Hall Was Never Meant to Change the Rules

City Hall was intentionally exempt from the height limit because the law applied primarily to private commercial buildings, not civic monuments.

But city leaders were explicit about one thing:
City Hall was not a precedent.

It was designed to:

  • Serve as a symbolic seat of government
  • Stand alone as a civic landmark
  • Represent stability, authority, and modern governance
  • Avoid competing with private office buildings

In effect, Los Angeles wanted a skyline icon — without a skyline.


Innovation Hidden in Plain Sight

What made City Hall truly significant wasn’t just its height — it was how it was built.

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At a time when seismic science was still developing, City Hall incorporated advanced structural ideas for its era:

  • A steel-frame skeleton designed for flexibility
  • Reinforced concrete shear walls for lateral strength
  • A tapered tower to reduce wind and seismic stress
  • Thick structural cores that distributed force instead of resisting it rigidly

These choices weren’t about aesthetics — they were about survival.


The Earthquake That Changed the Conversation

In 1933, the Long Beach earthquake struck Southern California, causing widespread damage and reshaping building codes statewide.

Los Angeles City Hall survived with minimal structural damage.

This moment quietly reshaped the debate:

  • A tall building had endured a major earthquake
  • Structural engineering had proven effective
  • Height alone was no longer the enemy — poor design was

City Hall didn’t just survive — it validated a new approach to vertical construction in seismic regions.


Proof Without Permission

Despite this success, Los Angeles did not rush to repeal its height limits.

Cultural resistance to density remained strong, and developers continued to build outward rather than upward. But the technical argument had already been settled.

City Hall stood as living proof that:

  • High-rise buildings could be engineered safely in Los Angeles
  • Earthquakes were a challenge, not a barrier
  • Fire, structural, and seismic risks could be managed

The height restriction was no longer about safety — it was about philosophy.


The Ironic Legacy

When Los Angeles finally lifted its height limit in 1957, the city did not suddenly erupt into skyscrapers. The habit of building outward was already deeply entrenched.

The result:

  • A skyline that arrived decades late
  • Uneven density across the region
  • Multiple business centers instead of one core
  • Housing and transit challenges baked into the city’s growth pattern

City Hall never triggered a skyscraper boom — but it quietly made one possible.


Why This Still Matters

Today, Los Angeles continues to wrestle with:

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  • Housing shortages
  • Transit-oriented development debates
  • Height and zoning battles near rail corridors
  • Resistance to density in a growing city

These debates didn’t begin recently.

They trace back to a single contradiction: a city that banned tall buildings — while proving they could be built safely all along.

Los Angeles City Hall wasn’t just a monument.
It was a test case — and it passed.

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small business

When TV Talks About Gentrification and Shopping Local — and Where It Gets It Right (and Wrong)

A closer look at how the TV show The Neighborhood tackles gentrification and shopping local—and where the reality of online sales and small business survival is more complex.

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a buy local signage. A closer look at how the TV show The Neighborhood tackles gentrification and shopping local—and where the reality of online sales and small business survival is more complex.
Photo by RDNE Stock project on Pexels.com

In our continuing look at how entertainment—television, movies, and streaming shows—grapples with real-world issues, this time we turn our attention to gentrification and the often-repeated call to “shop local.” Once again, we examine how popular culture frames these conversations, this time through the CBS sitcom The Neighborhood and the episode “Welcome Back to What Used to Be the Neighborhood.”

A Familiar Story: When the Neighborhood Changes

In the episode, Calvin’s favorite longtime restaurant closes its doors and is replaced by a flashy new pet spa. To Calvin, the change symbolizes something much bigger than a single business closing—it represents the slow erosion of the neighborhood he knows and loves. In response, he launches a campaign urging friends and neighbors to buy local in order to protect small businesses from disappearing.

Emotionally, the episode hits home. Many communities across the country have watched beloved neighborhood institutions vanish, replaced by businesses that feel disconnected from the area’s history and culture. In that sense, The Neighborhood gets something very right: gentrification often shows up one storefront at a time.

Where Television Simplifies a Complicated Reality

But, as is often the case with television, the episode also simplifies a much more complex economic reality.

The show frames “shopping local” as a direct alternative to shopping online, subtly suggesting that online platforms are inherently harmful to small businesses. In real life, however, the line between “local” and “online” is no longer so clear.

Many local and small businesses now survive precisely because they sell online—through their own websites, through Amazon, or through other platforms that support independent sellers. For some, online sales are not a threat to local commerce; they are a lifeline.

Why Brick-and-Mortar Isn’t Always Sustainable

Rising costs are a major factor driving these changes. Commercial leases, insurance premiums, utilities, staffing costs, and local fees have all increased dramatically in many cities. For small business owners, keeping a physical storefront open can become financially impossible—even when customer support remains strong.

As a result, some businesses choose to close their brick-and-mortar locations while continuing to operate online. Others scale back to pop-ups, shared spaces, or hybrid models. These businesses may no longer have a traditional storefront, but they are still local—employing local workers, paying local taxes, and serving their communities in new ways.

The Real Issue Behind “Shop Local”

Where The Neighborhood succeeds is in capturing the emotional truth of gentrification: the sense of loss, displacement, and cultural change that comes with rising rents and shifting demographics.

Where it misses the mark is in suggesting that consumer choices alone—simply avoiding online shopping—can solve the problem.

The real challenges facing local and small businesses go far beyond individual buying habits. They include zoning policies, commercial rent practices, corporate consolidation, and economic systems that increasingly favor scale over community presence.

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Visit: https://stmdailynews.com/stm-daily-news-pop-culture-fact-check-do-electric-cars-have-fuses/

A Conversation Worth Having—Even If TV Can’t Finish It

The Neighborhood deserves credit for bringing these issues into mainstream conversation. It sparks discussion, even if it wraps a complicated topic in a sitcom-friendly moral lesson.

The reality is messier. Supporting local businesses today often means rethinking what “local” looks like in a digital economy—and recognizing that survival sometimes requires adaptation, not nostalgia.

Further Reading & External Resources

At STM Daily News, our Local and Small Business coverage continues to explore these real-world dynamics beyond the TV screen, highlighting the challenges, innovations, and resilience of the businesses that keep communities alive—whether their doors are on Main Street or their storefronts live online.

📍 Read more Local and Small Business coverage at: STM Daily News

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