High school tuition at colleges and universities in the United States rose 2.1 percent in the fiscal year that ended Sept. 30 to $3,971 for a total of $8,534 billion in total federal student aid.
But the average student’s total federal aid for the academic year, including financial aid and Pell Grants, fell 2.3 percent to $5,764, according to the Department of Education.
The average Pell Grant award declined by 0.9 percent to about $1,000.
Federal Pell grants and Stafford loans for undergraduate and graduate students fell 0.3 and 0.2 percent respectively.
The federal government also increased student loan forgiveness, or forgiveness for existing student loans.
For borrowers with $200,000 or more in loans, a forgivable loan forgiveness credit was reduced to $200 per month for 30 months.
Students with $50,000 in outstanding loans would have to repay $1.5 million annually.
“We’re really excited about the new scholarship programs,” said Lisa M. Burd, chief of the Federal Student Aid office at the Department for Education.
“We know these new awards are important for students who are making good financial decisions.
They help students avoid some of the most difficult choices they’ll make.”
The new scholarships for higher education are part of a broader initiative by President Trump’s administration to bolster the nation’s financial aid system.
It also included a $20 billion program to help low-income students pay for college through the Higher Education Act of 1965.
The Trump administration’s program is designed to help help students who otherwise would not be able to afford college because of low incomes.
The new program will help students from low- and moderate-income families afford college, as well as provide students with additional financial aid through grants, loans and scholarships.
It will help ensure that students are able to access federal Pell Grants and Stafford Loans.
The Pell Grant is available to students who earn up to about half of the federal poverty level, which is $26,050 for a family of four.
Stafford Loans, which are available to families who earn less than $48,350 for a household of four, are available for up to $6,000 a year.
To qualify for the federal Pell Grant, a student must earn at least $45,000, have earned at least 40 semester hours in four years, and be enrolled in a four-year college or university.
Students who have taken at least a semester off of school because of a family emergency or medical condition are eligible for Stafford Loans and other Pell Grant programs.
While the new scholarships will help many students who don’t have the financial means to attend college, they are not expected to be the only thing that help them.
As the cost of college rises, students will increasingly need more financial aid from the federal government to pay for school, the Department said.
More: The federal government is offering a variety of financial aid programs to help students pay their college bills, including a $10,000 credit for students with low or moderate incomes, $10 for high school graduates and $25 for college grants.
Related: College grants to students with debt will rise, but only slightly more than they did in 2019