Pell Grant Changes

The Federal Pell Grant has been the primary federal need-based grant for undergraduates since 1972. Both the maximum award and the eligibility rules have shifted considerably over the years. This post summarizes the most important changes and notes the current state of the program.

Maximum award over time

Each Pell Grant covers a 12-month award year, running July 1 through June 30. The maximum annual award has grown meaningfully over the past two decades — from $4,731 in 2008–09 to $7,395 for the 2025–26 and 2026–27 award years. Congress sets the maximum award each appropriations cycle, so the figure can change from one year to the next. The current published number is at studentaid.gov.

The minimum Pell Grant award is currently $740. Students enrolled less than full-time receive a prorated share of the full-time award.

From EFC to SAI

For decades, Pell eligibility was determined by the Expected Family Contribution (EFC), a number calculated from FAFSA inputs. The FAFSA Simplification Act, passed in December 2020, replaced the EFC with the Student Aid Index (SAI) starting with the 2024–25 award year. The SAI is calculated differently and, for many families, produces a different eligibility result. The minimum SAI is -$1,500, meaning students with the greatest financial need can show as more eligible than under the old EFC.

For the 2026–27 award year, applicants with an SAI of $14,790 or higher are generally not eligible for a Pell Grant, with narrow exceptions defined by federal law.

Lifetime limit and Year-Round Pell

In 2011, Congress reduced the lifetime Pell eligibility limit from the equivalent of 18 full-time semesters to 12. That cap remains in place. The change was retroactive when first enacted, which caught some students mid-program.

Year-Round Pell, which allows full-time students to receive up to 150% of their annual award by taking summer classes, was restored in 2017 and remains available to eligible students.

How to verify current figures

Pell program details change. Before relying on a specific dollar figure or rule, check the Department of Education's current announcement at studentaid.gov. For an overview of how the program works today, see our Pell Grants pillar page.

Where to apply

• File the FAFSA at studentaid.gov — this is the application for the Pell Grant.

The FAFSA is always free. Anyone who asks you to pay to file it is not affiliated with the federal program. GovernmentGrants.com is not affiliated with the U.S. Department of Education.