Federal Student Aid Eligibility

In general, to be eligible to receive federal student aid (including Pell  grants), Department of Education guidance states that an applicant must: be a citizen or eligible noncitizen of the United States; have a valid Social Security Number; have a high school diploma or a General Education Development  certificate, or have completed homeschooling; be enrolled in an eligible program as a regular student seeking a maintain satisfactory academic progress; not owe a refund on a federal student grant or be in default on a  federal student loan;  register (or already be registered) with the Selective Service System,  if the person is a male and not currently on active duty in the U.S.  Armed Forces; and not have a conviction for the possession or sale of illegal drugs for an  offense that occurred while the person was receiving federal student  aid (such as grants, work-study, or loans). Education, Participating Schools, and Other Stakeholders Took Several Actions to Implement the Second Chance Pell Pilot

		Education Selected 64 Schools to Participate in the Second Chance Pell Pilot

In response to an August 2015 Federal Register notice announcing the  pilot, Education officials reported receiving applications from over 200  schools seeking to participate. The 64 schools are located across 26 states  and include public and private nonprofit 2- and 4-year schools. Almost 8,800 Incarcerated Students Received a Pell Grant in the Pilot’s First 2 Years

Across the pilot’s first 2 years, 59 Second Chance Pell schools disbursed  approximately $35.6 million in Pell grants to a total of 8,769 individual  students. Figure 3 shows incarcerated students taking college classes inside two  New York prisons. Officials from all 12 schools we interviewed said at least some of  their incarcerated applicants had existing federal student loans in default  status. In addition, officials from 9 of 12 schools said they developed new  approaches to address challenges related to processing FAFSAs  submitted by incarcerated applicants. Officials from Selected Schools Reported Logistical Challenges in Providing Prison-based Classes, but Many Schools Developed New Approaches to Address Them

School officials we interviewed reported that providing college courses in  prisons required them to develop new processes and generate creative  solutions to help overcome technology limitations, space limitations, and  the transfer of students to other prisons, among other limitations. However,  Education has not established how it intends to evaluate Second Chance  Pell or measure the pilot’s performance against its objectives. As noted above, Education is required to review and evaluate  experiments under the Experimental Sites Initiative and make subsequent  recommendations, as appropriate, for amendments to improve and  streamline the Higher Education Act, which includes the delivery of  federal student financial aid. In its comments on the draft  report, Education stated that it was now planning to evaluate the pilot,  consistent with the objectives set out in the Federal Register, and  described a number of steps it was taking to do so. An evaluation of Second Chance Pell can help provide  policymakers with the information needed to make decisions about the  future of Pell grants for incarcerated students. Regarding our recommendation to evaluate Second Chance Pell and  report on its findings, Education concurred, with clarification. Appendix I: Scope and Methodology

To identify the actions Education and other stakeholders took to  implement the Second Chance Pell pilot, we reviewed summary-level  data from the Department of Education (Education) regarding the first two  years of the pilot—school years 2016-2017 and 2017-2018—on the  schools that participated in the pilot, the number of incarcerated  individuals who applied for and received Pell grants, and other aspects of  the pilot. To further identify what actions schools and correctional facilities took to  implement the pilot, we interviewed officials from a non-generalizable  sample of 12 schools participating in the pilot. To assess how Education is monitoring and evaluating the pilot, and what  opportunities, if any, exist for improvement, we reviewed Education’s  documentation on the pilot’s objectives (including any evaluation  objectives), and analyzed the data collection instruments Education uses  to monitor the pilot.
Why GAO Did This Study

Incarcerated students are generally prohibited from receiving Pell grants, which provide need-based federal financial aid to low-income undergraduate students. However, Education has the authority to waive specific statutory or regulatory requirements for providing federal student aid at schools approved to participate in its experiments. Accordingly, the department initiated the multi-year Second Chance Pell pilot in 2015 to test whether allowing incarcerated individuals to receive Pell grants increases their participation in higher education programs and influences their academic and life outcomes, or creates any obstacles to schools' administration of federal financial aid programs.
GAO was asked to review the Second Chance Pell pilot. This report examines (1) actions Education, schools, and other stakeholders have taken to implement the pilot; (2) experiences participating schools are having as they implement the pilot; and (3) how Education is monitoring and evaluating the pilot and whether opportunities for improvement exist.
GAO analyzed summary-level Education data from the 2016-2017 and 2017-2018 school years and interviewed a non-generalizable sample of 12 schools (and associated prison partners) that were selected for variation in type of school (i.e., public and private nonprofit), type of prisons served, and other variables. GAO also interviewed Education officials.

What GAO Found

The Department of Education (Education) selected 64 schools across 26 states to participate in the Second Chance Pell pilot, and participating schools collaborated with prisons and other stakeholders to implement the pilot. Across the pilot's first 2 years, schools awarded approximately $35.6 million in Pell grants to about 8,800 incarcerated students.
Officials from the 12 schools GAO interviewed reported experiencing some challenges implementing the pilot. First, school officials said they experienced challenges establishing incarcerated applicants' eligibility for Pell grants, since some applicants had not registered for Selective Service and some had an existing federal student loan in default. However, many applicants were able to complete the necessary steps—such as making a set number of payments on their defaulted loans—to reestablish eligibility. Second, obtaining documents from incarcerated applicants to support verification—which helps the department's efforts to reduce improper payments of federal student aid—was another challenge officials reported. School officials also said that providing college classes in prisons required them to develop new processes and creative solutions to overcome technology limitations, space limitations, and the transfer of students to other prisons. Officials from 8 of 12 schools told GAO they hired additional staff or developed new approaches in response to their pilot efforts.
Incarcerated College Students inside New York's Sing Sing Correctional Facility
Education monitors the pilot by collecting data from participating schools, but had not established how it intended to evaluate Second Chance Pell or measure the pilot's performance against its objectives. Education is required to review and evaluate experiments under the Experimental Sites Initiative—of which Second Chance Pell is a part—and make recommendations, as appropriate, to improve the delivery of federal student aid. In its comments on the draft report, Education stated that it was planning to evaluate the pilot, consistent with the pilot's objectives, and described a number of steps it was taking to do so. Completing this evaluation can help ensure policymakers have the information needed to make decisions about the future of Pell grants for incarcerated students.

What GAO Recommends

GAO recommends that the Secretary of Education complete its evaluation of the pilot to report on its findings and conclusions. Education concurred, with clarification, and stated that it had actions underway to evaluate the pilot.