Could a Wealth-Based Pell Grant Close Racial Gaps in Student Debt?

As concerns about college affordability and the economic burden of student loan debt grow, some experts say it might be time not only to boost the budget for federal financial aid but also to go back to the drawing board on how that aid is allocated. Currently, the federal government awards the Pell Grant to students based on their family’s income and household size, but the formula doesn’t heavily take into account a family’s wealth—assets like college savings accounts, income-producing properties, investment funds, stocks and bonds.