S. 5403 — Debt-Free College Act of 2026

This section establishes State-Federal partnerships to increase investment in public higher education and enable eligible students to attend in-State public institutions without debt. Eligible students are those who complete the FAFSA or demonstrate Pell Grant eligibility and enroll at a qualifying public institution in their state of residence.

This section establishes a debt-free college grant program for private nonprofit HBCUs, Tribal Colleges and Universities, and certain minority-serving institutions with at least 35 percent Pell Grant recipients. It authorizes five-year grants equal to each institution’s annual expenditures on undergraduate instruction and academic support, requires 95 percent of funds to cover students’ unmet need and 5 percent for capacity building, imposes tuition caps tied to the Consumer Price Index, and bars use for endowments or athletic facilities.

This section expands eligibility for federal grants, loans, and work-study assistance under title IV of the Higher Education Act to Dreamer students. A Dreamer student must have entered the United States before age 16, provided a list of U.S. secondary schools attended, and met one of the following: earned a high school diploma or equivalent (or be on track to do so); completed at least two years toward a baccalaureate degree with satisfactory progress; qualified for deferred action under the June 15, 2012, or November 20, 2014, DACA memoranda; or served at least four years in the uniformed services with an honorable discharge. The Secretary may waive the age or school-list requirements for compelling circumstances.