While the cost of living has climbed, the maximum amount for federal Pell Grants has not, which Rep. Salud Carbajal, D-Santa Barbara, announced Thursday that he hopes to change with legislation.
Carbajal, surrounded by educators and students gathered Thursday at Allan Hancock College in Santa Maria, revealed the reintroduction of legislation to boost help for some students pursuing a higher education. A similar effort occurred in 2024.
The Degrees Not Debt Act would double the maximum Pell Grant award to $14,800, with a goal of decreasing the student loan debt for individuals pursuing higher education. The legislation also would ensure that the grant amounts keep pace with inflation.
Federal Pell Grants are awarded to students who display an exceptional financial need.
“We cannot continue to ask our young people to mortgage their futures to get an education,” Carbajal said. “We cannot accept a system where the cost of college becomes a barrier rather than a bridge. That’s why the Degrees Not Debt Act matters.”
Today’s students face a tough job market, a higher cost of living and runaway student debt that across the United States exceeds $1.8 trillion, Carbajal said.
In California, the average borrower carries an average debt of more than $38,000.
“This legislation is an investment in our future, and if we double the Pell Grant and index it to inflation, we can stop having this debate over and over and over again and making the burden that’s on students and their parents a partisan issue,” Allan Hancock College Superintendent/President Kevin Walthers said, adding that it’s about equal access to education.
Gerrie Hatten, executive director of Cal Poly’s Financial Aid and Scholarship Office, said the maximum amount for Pell Grants increased from $5,775 in 2015 to $7,395 in 2025, a 22% increase.
While the state has worked to minimize tuition increases, students still face rising costs for living expenses, often funded by Pell Grants.
During the past decade, costs of off-campus food and housing have ballooned to nearly $23,000, compared with the average of $13,000 in 2015, a 77% increase, Hatten added.
“Congressman Carbajal’s proposed legislation directly addresses this challenge and affirms the importance of investing in students and keeping college within reach for all,” Hatten said.
Allan Hancock Student Body President Annabelle Ruiz said one classmate shared about taking only two classes each semester because of the need to work 30 hours a week.
“We aren’t just asking for an easier path. We’re asking for a fair chance. The Degrees Not Debt Act would allow students to focus more on achieving their goals and less on financial survival. This act represents opportunity — the opportunity to learn, to serve our communities and to build the future without the weight of lifelong debt,” Ruiz said.
Cal Poly SLO Associated Students President Marc Fredy Cabeliza, who graduated from Pioneer Valley High School in Santa Maria in 2021, also spoke about the importance of the proposed legislation.
“The truth is, when education comes with crushing debt, it doesn’t just limit students; it limits families, communities and our future. That’s why addressing college affordability is so important and why this legislation matters,” Cabeliza said.
He said expanding financial aid can mean the difference between finishing a degree or being forced to drop out of college.
“Behind every statistic is a student with a dream, a family making sacrifices and a community that benefits when education is affordable for all,” said Cabeliza, who is in a fourth year and majoring in bioresource and agricultural engineering.