President Joe Biden recently signed into law the American Rescue Plan, a $1.9 trillion economic stimulus package aimed at helping the nation recover from the devastating impacts of the COVID-19 pandemic. While the plan includes a wide range of provisions to support individuals and businesses, it also includes important provisions that will directly benefit college students.

One of the key components of the American Rescue Plan is the expansion of the Pell Grant program, which provides financial aid to low-income students to help them cover the cost of college. The plan increases the maximum Pell Grant award by $400, bringing it to $6,495 for the 2021-2022 academic year. This increase will help more students afford the cost of higher education and reduce their reliance on student loans.

In addition to increasing Pell Grant awards, the American Rescue Plan also includes funding for Historically Black Colleges and Universities (HBCUs) and other minority-serving institutions. These institutions have been disproportionately impacted by the pandemic and the economic downturn, and the funding will help them continue to provide high-quality education to students from underrepresented communities.

The plan also includes measures to address student loan debt, which has reached record levels in recent years. While the plan does not include broad-based student loan forgiveness, it does provide relief for borrowers who have experienced financial hardship due to the pandemic. The plan includes a provision that makes any student loan forgiveness passed between December 31, 2020, and January 1, 2026 tax-free, providing much-needed relief to borrowers who may have their loans forgiven during that time period.

Overall, the American Rescue Plan provides vital support for college students who have been struggling to make ends meet during the pandemic. By increasing Pell Grant awards, providing funding for minority-serving institutions, and offering relief for student loan borrowers, the plan will help ensure that students can continue their education and pursue their career goals without being burdened by excessive debt.

As the nation continues to recover from the impacts of the pandemic, the American Rescue Plan will play a crucial role in supporting college students and ensuring that they have the resources they need to succeed. By investing in higher education, the plan will help build a stronger, more resilient economy for the future.