Pell Grant Restoration Act of 2015 Introduced to Protect Students

Today, a bipartisan group of Members of Congress, led by Senator Barbara Boxer (D-CA) and Representative Bobby Scott (D-VA), introduced the Pell Grant Restoration Act of 2015. They were joined by Senators Dick Durbin (D-IL), Elizabeth Warren (D-MA), Mazie Hirono (D-HI), Chris Murphy (D-CT) and Representatives Maxine Waters (CA-43) and Janice Hahn (CA-44).

With the collapse of Corinthian Colleges, Inc. amid widespread allegations of fraud, this legislation aims to protect students who lost access to education and financial aid through no fault of their own. Under current law, a student’s Pell Grant eligibility clock does not reset when a school closes or is found to have violated federal rules, leaving many students without enough grant eligibility to finish a program elsewhere. The Pell Grant Restoration Act would restore Pell Grant eligibility for students whose schools closed due to certain violations, allowing them to continue their education.

Why Restore Pell Grant Eligibility?

Pell Grants are a critical source of need-based federal aid that helps students pay for tuition and fees, books, and living expenses. When a school shuts down or is found to have engaged in deceptive or predatory practices, students suffer the financial and academic consequences. Restoring Pell eligibility gives these students a real opportunity to transfer, reenroll, or begin a new program without being penalized for the misconduct of their institution.

Support and Statements

U.S. Secretary of Education Arne Duncan praised the bill, noting that while defrauded students may receive some loan relief today, current law does not allow them to restore Pell Grant eligibility. Secretary Duncan commended Congressman Bobby Scott and Senator Boxer for their leadership in addressing this gap.

Senator Boxer emphasized the need to protect students from predatory for-profit colleges and ensure they are not punished for deceptive practices. She said the Pell Restoration Act would help students start over by restoring access to crucial financial aid.

Representative Bobby Scott highlighted that while time lost from interrupted studies cannot be recovered, restoring Pell eligibility would give students another chance to pursue a post-secondary education without losing key aid. He argued that higher education should not be a risky proposition for students and families.

Senator Durbin criticized the failure to intervene sooner to prevent federal Pell funding from being wasted on a failing system, stating it is fair to restore grant eligibility for students misled into attending poor programs. Senator Warren added that students cheated by predatory colleges should not lose Pell eligibility and that the legislation would allow them to hit the reset button and return to school.

Representative Maxine Waters drew attention to the demographics most harmed — including low-income students, veterans, and minority communities targeted by aggressive recruitment — and said the bill would help restore opportunities for a quality education and productive careers. Representative Janice Hahn noted this is both fair and sound policy, offering motivated students the chance to continue their education.

Senator Mazie Hirono described how thousands of students were left scrambling after Corinthian’s closure, and urged Congress to give those students another opportunity to use federal aid to complete their degrees. Senator Chris Murphy stressed the need to hold abusive colleges accountable while also restoring aid so affected students can continue their studies.

Legislative and Advocacy Support

The Pell Grant Restoration Act of 2015 counts 45 House cosponsors and 4 Senate cosponsors. House cosponsors include Rubén Hinojosa, Janice Hahn, Maxine Waters, Susan A. Davis, Raúl M. Grijalva, Joe Courtney, Marcia L. Fudge, Jared Polis, Gregorio Kilili Camacho Sablan, Frederica S. Wilson, Suzanne Bonamici, Mark Pocan, Mark Takano, Hakeem S. Jeffries, Katherine M. Clark, Alma S. Adams, Mark DeSaulnier, Karen Bass, Earl Blumenauer, G.K. Butterfield, Michael E. Capuano, Tony Cárdenas, Kathy Castor, Judy Chu, David N. Cicilline, Wm. Lacy Clay, Peter A. DeFazio, Keith Ellison, Chaka Fattah, Lois Frankel, Ruben Gallego, Luis V. Gutiérrez, Denny Heck, Marcy Kaptur, Robin L. Kelly, James R. Langevin, Jim McDermott, Gwen Moore, Patrick Murphy, Pedro R. Pierluisi, Charles B. Rangel, Cedric L. Richmond, Lucille Roybal-Allard, Tim Ryan, and Bennie G. Thompson.

Senate cosponsors are Dick Durbin (D-IL), Elizabeth Warren (D-MA), Mazie Hirono (D-HI), and Chris Murphy (D-CT).

The bill is supported by a broad coalition of organizations, including labor unions, veterans’ groups, consumer advocates, educators, and public interest groups. Supporting organizations named include AFL-CIO, Air Force Sergeants Association, American Federation of Teachers, Association of the United States Navy, Center for Law and Social Policy, Consumer Action, Consumer Union, The Education Trust, Equal Justice Works, Housing and Economic Rights Advocates, NAACP, National Association for College Admission Counseling, National Association of Consumer Advocates, National Education Association, National Women Veterans, Public Counsel, Service Employees International Union, Student Debt Crisis, The Institute for College Access & Success, U.S. Public Interest Research Groups, Veterans for Common Sense, Veterans Education Success, VetJobs.com, VetsFirst, and Young Invincibles.

Resources

A fact sheet and the full bill text were released at the time of introduction for lawmakers, advocates, and affected students to review:

Pell Restoration Act of 2015 — Fact Sheet

Pell Restoration Act of 2015 — Bill Text

The Pell Grant Restoration Act of 2015 seeks to ensure that students harmed by institutional misconduct or sudden school closures have a viable path to complete their education through restored federal aid. By resetting Pell eligibility in qualifying cases, the bill aims to protect taxpayers, hold bad actors accountable, and most importantly, give students who were misled or abandoned a real chance to continue toward a degree or credential.