For decades, federal Pell Grants have helped undergraduate students with financial need afford college. Unlike student loans, these grants typically don’t need to be repaid — which makes them an incredibly useful resource for students.
This year, Pell Grants (like many parts of the federal student aid program) are changing. These updates are part of the One Big Beautiful Bill Act (OBBBA), which was signed into law in 2025, and will be implemented by the Department of Education starting on July 1 this year.
If you’re already a Pell Grant-eligible undergrad or you’re starting school in the fall, here’s what to know.
What are Pell Grants?
Federal Pell Grants are designed for students with “exceptional financial need” and are available to undergraduate students who have not already earned a bachelor’s degree or higher.
You’ll find out if you’re eligible for a Pell Grant when you submit your FAFSA. For the 2026-2027 school year (effective July 1), the maximum Pell Grant amount you can receive is $7,395. The award amount you’re eligible for is disbursed to you by your school.
But the specific amount you may qualify to receive depends on multiple factors, including your Student Aid Index calculated from the information on your FAFSA, your school’s cost of attendance, whether you’re a full-time or part-time student, and more.
You may also be eligible for the maximum Pell Grant award if your parent died while on active duty in the U.S. military or as a public safety officer, even if you wouldn’t normally qualify based on your Student Aid Index.
You can receive Pell Grant funds for up to 12 terms, which is the equivalent of six years, or until you reach your lifetime eligibility amount.
Read more: How student loans will change in 2026
What’s changing on July 1?
Here are some important changes for the Pell Grant program that affect the upcoming 2026-2027 school year:
New workforce Pell Grants
While Pell Grants were previously designated for undergraduate students at colleges and universities, the OBBBA will make additional types of students eligible for awards.
Workforce Pell Grants are a new option for some students in short-term “eligible workforce programs” at accredited institutions lasting between eight and 15 weeks. These programs focus on preparing students for high-demand occupations and include job training and certificate programs. You could be eligible for a workforce Pell Grant even if you already have a college degree.
For a workforce program to become eligible, the state governor must consult with a state board to determine if the program is related to “high-skill, high-wage, or in-demand industry sectors or occupations” within the state. Then, the program can get final approval for Pell Grant eligibility from the U.S. Department of Education.
The standards a program must meet include metrics for student completion rate, employment rate upon program completion, and graduates’ earnings.
Related: How to pay for college without taking out student loans
Federal Pell Grant eligibility
Your eligibility for a Pell Grant depends on various factors, but the OBBBA outlines some situations that could make you ineligible for a Pell Grant. If you received a Pell Grant award in the past, this may change what you qualify for this year.
If your overall grants and scholarships from non-federal sources — academic or sports scholarships from your university, for example, or a state grant — are enough to cover your entire cost of attendance, you won’t be eligible for a federal Pell Grant. That applies even if you would otherwise be eligible for an award.
In addition, you won’t be eligible to receive a federal Pell Grant if your Student Aid Index (SAI) is greater than or equal to double the maximum amount. This year, that means your SAI cannot exceed $14,790.