Fact Sheet | October 11, 2011

House FY12 Appropriations Bill Penalizes Work for Low-Income Students by Cutting the Income Protection Allowance (IPA)

The Income Protection Allowance (IPA) is the amount of income a student or family can keep to cover minimal living expenses before being expected to contribute toward college costs. According to one student aid expert, it is “a modest allowance for basic living expenses. It barely addresses well-body care.” The House Fiscal Year 2012 appropriations bill drastically rolls back the bipartisan increases in IPA levels enacted in 2007 to help needy students. Current IPA levels are near the poverty level, and this rollback would cut Pell Grants by $22 billion over 10 years for millions of students who already struggle to cover living expenses and college costs.

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