Issue Briefs

About

The Pell Grant program was created to help academically qualified students who lack financial means afford a college education. First authorized as the Basic Educational Opportunity Grant in 1972, the program has served millions of low-income students and enjoyed bipartisan support for more than 50 years.

The maximum grant award amount is set by Congress in the annual Labor-HHS-Education Appropriations bill.

Student grant eligibility guidelines were most recently updated in the FAFSA Simplification Act of 2020. Students qualify for Pell Grants by filling out the Free Application for Federal Student Aid (FAFSA), which determines eligibility based on three variables: (1) income; (2) family size; (3) and family type. A student’s Pell Grant may also be reduced proportionately to their enrollment intensity if they are enrolled less than full-time.

While using these variables, a student can receive the following Pell Grant awards:

• Maximum Pell Grant: The maximum Pell Grant will be awarded to a student if they are not required to file a federal income tax return and the student, or the dependent student’s parent, is considered a single parent with an adjusted gross income equal to or less than 225% of the poverty line. If not considered a single parent, the adjusted gross income must be equal to or less than 175% of the poverty line to qualify for a maximum Pell Grant.

• Minimum Pell Grant: A student shall be eligible for a minimum Pell Grant when the student is enrolled in an eligible program full-time and their adjusted gross income is either equal to or less than: (1) 325% or 275% of the poverty line for a dependent student subject family type; or (2) 400%, 350%, or 275% of the poverty line for an independent student subject to family type.

• Any Pell Grant Amount: A student can qualify for a Pell Grant if they are enrolled full-time in an eligible program and their Student Aid Index (SAI), formerly known as the Expected Family Contribution, is less than the total maximum Pell Grant amount for that award year. A student is able to receive a maximum Pell Grant award if their SAI is equal to zero or less. If a student is unable to receive a maximum or minimum Pell Grant amount due to their SAI, then the Secretary is required to subtract from their, or their parent(s), adjusted available income (1) any grant or scholarship aid reported on an income tax return and (2) income earned from work through the Federal Work-Study program.

Two additional eligibility changes were made to Pell Grants in the One Big Beautiful Bill of 2025 reconciliation package: the elimination of Pell Grant eligibility for (1) students receiving scholarships that meet or exceed their full cost of attendance; and (2) students whose SAI is at least two times the current (FY 2025) Pell Grant maximum of $7,395.

Students are also allowed to receive Pell Grants for summer terms.

There is a lifetime limit of 12 semesters, or the equivalent, for Pell Grant eligibility.

Pell Grants for Incarcerated Individuals

Pell Grants may be available to incarcerated individuals who are participating in qualified prison education programs.

Workforce Pell

Starting July 1, 2026, Pell Grants can be used for short-term workforce development programs that last between 8 and 15 weeks, address high skill, high wage, in-demand jobs, and are approved by the state’s governor to meet those needs. Workforce Pell programs must also be approved by the Secretary of Education and meet completion, job placement, and value-added metrics.