Federal Pell Grant changes take effect for the 2026–27 academic year (beginning July 1, 2026) under the One Big Beautiful Bill Act (OB3/OBBBA)signed into law on July 4, 2025. Here's a summary of the major changes:
| Changes | What It Means |
|---|---|
| New Pell Eligibility Cap based on Student Aid Index (SAI) | Students with a Student Aid Index (SAI) at or above twice the maximum Pell Grant are no longer eligible for an SAI-based Pell Grant. For example, if the maximum Pell is $7,395, students with an SAI of $14,790 or higher would not qualify under this calculation. |
| Pell Displacement Rule | Students whose grant and scholarship aid already covers their full cost of attendance (COA) generally cannot also receive a Pell Grant. Previously, Pell could often still be awarded even when other gift aid met the student's COA. |
| Foreign Income Included | Certain foreign income that was previously excluded will now be considered when determining Pell eligibility, which could reduce eligibility for some students. |
| Workforce Pell | The law expands Pell eligibility to certain short-term workforce training and certificate programs, generally those lasting 150–599 clock hours and 8–15 weeks, provided they meet federal eligibility requirements. At this time MJC is not participating in Workforce Pell. |
Federal Pell Grant is the most widely offered grant by the Department of Education (DOE). Pell eligibility is determined through the Free Application for Federal Student Aid (FAFSA). The Federal Pell Grant is limited to undergraduate students and only for the first bachelor's degree. Federal Pell is awarded based on financial need.
Beginning with Fall 2024, student's eligibility will be evaluated in three ways and will receive the greatest of these Pell awards:
For Maximum and Minimum Pell Grant evaluation, the DOE uses the family's Adjusted Gross Income (AGI) from their taxes and family size relative to national poverty determinations for the same year as the taxes reported on the aid year's FAFSA. The DOE uses the 2024 poverty guidelines for the 2026-2027 FAFSA year.
| Student Type | Maximum Pell Limit | Minimum Pell Limit |
|---|---|---|
| Dependent student with single parent | 225% of poverty guideline | 325% of poverty guideline |
| Dependent student with non-single parent | 175% of poverty guideline | 275% of poverty guideline |
| Independent student who is not a parent | 175% of poverty guideline | 275 % of poverty guideline |
| Independent student who is a single parent | 225% of poverty guideline | 400% of poverty guideline |
| Independent student who is a non-single parent | 175% of poverty guideline | 350% of poverty guideline |
Eligibility for Pell Grant (not including Maximum or Minimum Pell) is determined by subtracting your Student Aid Index (SAI) from the Maximum Pell Grant award for the Year and rounding to the nearest $5. In case of a negative SAI, use -0- in this calculation.
Beginning with Fall 2024, enrollment intensity is measured by the number of units enrolled as a percentage of 12 units for full-time.
| Number of Units | Enrollment Intensity |
|---|---|
| 12 (or more) | 100% |
| 11 | 92% |
| 10 | 83% |
| 9 | 75% |
| 8 | 67% |
| 7 | 58% |
| 6 | 50% |
| 5 | 42% |
| 4 | 33% |
| 3 | 25% |
| 2 | 17% |
| 1 | 8% |
Once the annual Federal Pell Grant is determined, half of the award will be offered in each semester of the award year and will be prorated by Enrollment Intensity.
Previously, some Pell Grant-eligible student must have been enrolled at least half-time in summer in order to receive 100% of their scheduled summer Pell award. Beginning with the 2024-2025 award year, half-time enrollment is no longer required.
