By Rachel Livingston, Chief Program Officer, Fulfillment Fund
Fulfillment Fund’s mission has always been clear: to make higher education a reality for students who are often the first in their families to go to college. We walk alongside them from high school to college graduation, offering the advising, financial aid guidance, and career readiness support they need to thrive.
Our mission just became more urgent.
On July 4, the federal budget reconciliation bill was signed into law. While it includes some necessary investments in the Pell Grant program, it also brings sweeping changes that will make college less accessible, more expensive, and harder to complete for millions of students, particularly those from low-income, first-generation backgrounds that we serve.
Here’s what you need to know.
Pell Grants: Narrowing the Gateway to College
The Pell Grant has long been a lifeline for low-income students, making higher education possible without crushing debt. The new law allocates $10.5 billion to address funding shortfalls, but starting in 2026, it adds new restrictions that could reduce or eliminate eligibility for many.
- Foreign income will now be counted in eligibility calculations.
- Students with a higher Student Aid Index (SAI) or who receive enough non-federal aid to cover full costs may be disqualified.
For our students, many of whom rely on every available source of aid, these changes mean fewer will qualify for the grant that can make or break their ability to attend college.
Advanced Degree and Parent Loans: Higher Costs, Fewer Options
Graduate and professional PLUS loans will be eliminated in 2026, and new loan limits will apply to both parents and graduate students. This will likely push more families toward private loans with less favorable terms or deter students from pursuing advanced degrees entirely.
Repayment and Deferment: Harder Paths, Longer Debt
For current borrowers, the repeal of affordable repayment plans like SAVE and PAYE could raise monthly payments by up to 50%. Many of our alumni who are just starting their careers may face higher bills for decades.
Only two repayment options will remain:
- A fixed standard plan (10–25 years)
- A “Repayment Assistance Plan” with terms up to 30 years — locking many into debt for most of their working lives.
Economic hardship and unemployment deferments will also be eliminated, meaning students struggling to find work after graduation will have fewer safety nets.
Food and Healthcare Cuts: Barriers Beyond Tuition
The bill’s changes to Medicaid and SNAP will have a ripple effect on our students’ lives. Many will face increased food insecurity and may lose access to healthcare coverage. When students have to choose between paying tuition and meeting basic needs, their education is often the first thing sacrificed.
What This Means for Our Students
The students we serve are resilient, resourceful, and ambitious — but they already face systemic barriers to college access and success. This legislation adds new hurdles at every stage:
- Getting in (stricter Pell eligibility, fewer aid options)
- Staying in (loss of affordable repayment plans, increased living costs)
- Completing and advancing (higher debt burdens, reduced graduate school aid)
Our work has never been more critical. We will continue to:
- Advocate for policies that protect college access and affordability.
- Equip students with up-to-date information and strategies to navigate these changes.
- Connect them to scholarships, emergency funds, and supportive networks.
How You Can Help
This moment calls for bold action, and your partnership is more critical than ever.
Last year alone, Fulfillment Fund college counselors helped our high school seniors secure over $5 million in debt-free financial aid. That’s $5 million in opportunity, in future degrees, in life-changing outcomes.
But with sweeping cuts to Pell Grant eligibility, increased loan burdens, and fewer safety nets for low-income students, the path to college is narrowing. More students are at risk of being left behind.
We’re not standing still. We’re expanding scholarship support and doubling down on our efforts to guide students through this uncertain landscape.
But we can’t do it without you.
- Stay informed about how these changes impact students in your community.
- Support our work so we can provide financial aid counseling, career readiness programs, and emergency resources.
- Raise your voice in local and national conversations about higher education access.
We’ve always stood for the idea that higher education is a right, not a privilege. With your partnership, we can ensure that no student’s dream of a college degree is out of reach because of this bill.