Note
On March 22, 2024, President Biden signed H.R. 2882, the Further Consolidated Appropriations Act, 2024 into law which level funds the Federal Pell Grant program with a Pell Grant maximum of $7,395.
Dear Colleague:
This letter includes the Federal Pell Grant maximum and minimum award amounts for the 2024-2025 award year (July 1, 2024, through June 30, 2025). With the release of the 2024-2025 FAFSA® form in December 2023, the Department is providing the Pell Grant maximum and minimum award amounts so institutions may inform students and families about their eligibility for a Federal Pell Grant. All 2024-2025 Federal Pell Grant awards must be based on these amounts.
On January 19, 2024, the President signed Public Law 118-35, making further continuing appropriations for the fiscal year ending September 30, 2023, and for other purposes. Under these continuing appropriations, for the 2024-2025 award year, the maximum Pell Grant award remains fixed at $7,395. This situation could change at any time pending further action by Congress.
We are publishing the 2024-2025 Federal Pell Grant maximum and minimum award amounts by February 1 in accordance with section 482 of the Higher Education Act of 1965, as amended (HEA). Nevertheless, you should be aware that the funding currently made available under P.L. 118-35 expires on March 8, 2024, unless Congress acts to extend it. That law’s Pell Grant appropriation, or a similar measure, must be extended through September 30, 2024, to fund the award levels described herein for all eligible students in 2024-2025. If Congress acts to modify the current maximum award for 2024-2025, we will publish revised maximum and minimum award amounts.
Under section 401(a)(2)(F) of the HEA, as amended, the minimum Pell Grant award is ten percent of the maximum award amount for the award year. Further, under section 401(b)(1)(B)(ii), Federal Pell Grant awards should be rounded to the nearest $5. Therefore, the Federal Pell Grant minimum award amount for 2024-2025 is $740.
As a reminder, the FAFSA Simplification Act changed the process for determining the amount of a student’s Scheduled Pell Grant award. The Department will no longer publish a Pell Grant Payment and Disbursement Schedule for use in determining a student’s Pell Grant Scheduled Award for the award year. Instead, each student’s Scheduled Award is one of the following:
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A Maximum Pell Grant Award (Max Pell)
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Student Aid Index (SAI)-calculated Pell Grant, determined by subtracting the student’s SAI from the annual published maximum Pell Grant amount
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A Minimum Pell Grant Award (Min Pell)
Maximum and Minimum Pell Grant eligibility are determined based on tax filing requirements, family size and composition (i.e., single parent or non-single parent), Federal poverty guidelines, and state of residence. If a student qualifies for a Maximum Pell Grant, the SAI is not used to determine the amount of that grant. An SAI-calculated Pell Grant is determined by subtracting the student’s calculated SAI from the annual published maximum Pell Grant amount, then rounding to the nearest $5. If the SAI-calculated Pell Grant is less than the published minimum Pell Grant amount, the student is ineligible for an SAI-calculated Pell Grant. However, the student may still be eligible for Min Pell if they meet the minimum Pell Grant eligibility requirements. For additional information please refer to the 2024-25 Student Aid Index (SAI) and Pell Grant Eligibility Guide and Volume 7 of the Federal Student Aid Handbook, when available.
Although $7,395 is the maximum Pell Grant Scheduled Award for the 2024-2025 award year, institutions are reminded that a student may be eligible to receive Pell Grant funds for up to 150 percent of the student’s Pell Grant Scheduled Award for an award year. The FAFSA Simplification Act removed the requirement for a student to be enrolled at least half-time to receive Pell Grant funds of more than 100 percent of the student’s Scheduled Award. Therefore, to be eligible for the additional Pell Grant funds, the student must only be otherwise eligible to receive Pell Grant funds for the payment period to receive funds more than 100 percent of the student’s Scheduled Award.
As a reminder, when determining a student’s Scheduled Award, the Title IV cost of attendance (COA) is always based on the costs for a full-time student for a full academic year, regardless of the actual enrollment intensity or actual time the student will be enrolled during the award year. A student’s annual Pell Grant award is based on the student’s enrollment intensity. It is also important to note that the statutory restrictions of using only certain cost components in constructing a COA in some circumstances still apply. For more information on these COA restrictions, please refer to Volume 3 of the Federal Student Aid Handbook.
Also, note that a student’s eligibility to receive a Federal Pell Grant award may be limited by the statutory provision in section 401(d)(5) of the HEA that sets a lifetime Pell Grant eligibility limit of 12 semesters (or its equivalent). For more information on the Lifetime Eligibility Used (LEU) limit, please see Volume 7 of the Federal Student Aid Handbook.
In future electronic announcements, we will provide institutions with important information about system, web, and software modifications that will reflect the 2024-2025 Pell Grant maximum and minimum award amounts. These include changes to the FAFSA Processing System (FPS), the Common Origination and Disbursement (COD) System, and the EDExpress for Windows software.
We appreciate your continued support in making Federal Pell Grant Program assistance available to students.
Sincerely,
Richard Cordray
Chief Operating Officer
Federal Student Aid