H.R. 6472 would require public colleges and universities to charge in-state tuition to students who are U.S. nationals and residents of Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the United States Virgin Islands, in order to remain eligible to participate in the federal student aid programs. Those programs include federal student loans, which are classified as direct spending, and Pell grants, which are funded with a combination of direct spending and appropriated funds.
CBO expects that institutions would comply with the bill’s requirements to remain eligible for federal aid. CBO also anticipates that reducing tuition for eligible students could reduce the amount of Pell grants and federal student loans they receive. Conversely, some additional students might enroll in postsecondary education if tuition were lower, thus increasing the use of federal student aid.
CBO estimates that the number of students affected would be small and that enacting H.R. 6472 would not significantly affect direct spending or spending subject to appropriation for federal student aid.
Based on the cost of similar activities, CBO estimates that the cost to the Department of Education to implement H.R. 6472 would not be significant; any related spending would be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Leah Koestner. The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
