The largest federal college-grant program is in danger of running out of money.

For the first time in more than a decade, the Pell Grant program is facing a shortfall. Lawmakers have a lot of options and some time to plug the hole before it impacts the program.

But some experts worry that in closing the gap, Congress could choose to pull levers that would put students’ ability to afford college at risk.

In the past when the program was in danger of running out of money, lawmakers changed eligibility criteria so that fewer students qualified. That had “devastating” consequences for students, according to Bryce McKibben, senior director of policy and advocacy at the Hope Center at Temple University.

“That is the most worrisome, because it could undo a lot of the really important progress and gains that have been made in the program in recent years,” said McKibben, who worked on higher-education issues as a Democratic staffer on Capitol Hill for several years.

In recent years, about 6 million students have relied on Pell Grants annually to help pay for college. The program, named after the Rhode Island senator who championed it, Claiborne Pell, is a cornerstone of America’s higher-education financial-aid policy. The grants are government money provided to low-income students to pay for college that the students don’t have to pay back.

It’s an entitlement program, meaning that any college student who meets the income qualifications is entitled to receive the money. But unlike Social Security, funding for the program is not guaranteed. Congress appropriates the bulk of the dollars devoted to it each year.

Source: Pell Grants are in trouble, threatening financial aid for college students – MarketWatch