2026-27 Student Aid Index (SAI) and Pell Grant Eligibility Guide

3 Step 1: Determine Maximum Pell Grant Eligibility Use the Maximum Pell Grant criteria to determine eligibility based on tax filing status (e.g., non- tax filer), adjusted gross income (if tax filer), state of legal residence, and applicable poverty guidelines. Under HEA Sec. 401(b)(1)(A) a student is eligible for a Maximum Pell Grant if any of the following is true: Dependent Student • Maximum Pell Indicator = 1: The student’s parent(s) did not file a federal income tax re- turn; or • Maximum Pell Indicator = 2: The student’s parent is a single parent (as defined in Appen- dix G) and has an (AGI + Foreign Income Exclusion Amount) greater than zero and less than or equal to 225% of the poverty guideline for the applicant’s family size and state of le- gal residence; or • Maximum Pell Indicator = 3: The student’s parent is not a single parent and has an (AGI + Foreign Income Exclusion Amount) greater than zero and less than or equal to 175% of the poverty guideline for the applicant’s family size and state of legal residence. Independent Student • Maximum Pell Indicator = 1: The student (and spouse, if applicable) did not file a federal income tax return; or • Maximum Pell Indicator = 2: The student is a single parent (as defined in Appendix G) and has an (AGI + Foreign Income Exclusion Amount) greater than zero and less than or equal to 225% of the poverty guideline for the applicant’s family size and state of legal residence; or • Maximum Pell Indicator = 3: The student is not a single parent and has an (AGI + Foreign Income Exclusion Amount) greater than zero and less than or equal to 175% of the poverty guideline for the applicant’s family size and state of legal residence.

Note: The Maximum Pell Indicator (1, 2, or 3) will be returned on the ISIR, if applicable. Note: Before determining maximum Pell eligibility for a tax filer, the family size needs to be de- termined by using Appendix C and that value will be used throughout the calculation. See Ap- pendix D to determine non-tax filers vs. tax filer status and Appendix G to determine Single Par- ent status.

As a reminder, in Step 1 for a dependent student, the parents need to both qualify as non-filers to meet Maximum Pell Indicator 1 logic. For an independent student, the student and student’s spouse, if applicable, must be non-filers to meet Maximum Pell Indicator 1 logic.

State of Legal Residence

2026-27 Student Aid Index (SAI) and Pell Grant Eligibility Guide

25 Step 3: Determine Minimum Pell Grant Eligibility Use the Minimum Pell Grant criteria to identify additional applicants eligible for a Pell Grant. Un- der HEA Sec. 401(b)(1)(C), a student is eligible for a Minimum Pell Grant if any of the following is true: Dependent Student • Minimum Pell Indicator = 1: The student’s parent is a single parent (as defined in Appen- dix G), and has an (AGI + Foreign Income Exclusion Amount) less than or equal to 325% of the poverty guideline for the applicant’s family size and state of legal residence; or • Minimum Pell Indicator = 2: The student’s parent is not a single parent and has an (AGI + Foreign Income Exclusion Amount) less than or equal to 275% of the poverty guideline for the applicant’s family size and state of legal residence. Independent Student • Minimum Pell Indicator = 3: The student is a single parent (as defined in Appendix G), and the (AGI + Foreign Income Exclusion Amount) is less than or equal to 400% of the poverty guideline for the applicant’s family size and state of legal residence; or • Minimum Pell Indicator = 4: The student is a parent and is not a single parent, and the (AGI + Foreign Income Exclusion Amount) is less than or equal to 350% of the of the pov- erty guideline for the applicant’s family size and state of legal residence; or • Minimum Pell Indicator = 5: The student is not a parent, and the student’s (and spouse’s if applicable) (AGI + Foreign Income Exclusion Amount) is less than or equal to 275% of the poverty guideline for the applicant’s family size and state of legal residence.

Note: The Minimum Pell Indicator (1, 2, 3, 4, or 5) will be returned on the ISIR, if applicable.

For additional information on state of legal residence and poverty guidelines, see Step 1: Deter- mine Maximum Pell Grant Eligibility. SAI for Minimum Pell Grant Recipients Students eligible for a Minimum Pell Grant under one of these eligibility criteria retain the SAI calculated in Step 2: Calculate Student Aid Index. All other aid should be packaged using the calculated SAI.

2026-27 Student Aid Index (SAI) and Pell Grant Eligibility Guide

26 Federal Pell Grant Flag

The Federal Pell Grant Flag, used to determine if the student is potentially eligible for a Pell Grant award, is set to Y when the following occurs. Table 2: Pell Grant Flag If Then Graduate Flag is blank OR Pursuing Teach Certification is “Yes” AND Any of the following are true: SAI is non-blank AND less than or equal to Maximum Pell SAI minus the Minimum Pell SAI OR SAI is less than twice Maximum Pell SAI AND Minimum Pell Indica- tor is non-blank OR SAI is non-blank AND Children of Fallen Heroes Indicator is "Eligible for CFH" OR “Eligible Due to Grandfather” OR SAI is non-blank AND Iraq Afghanistan Service Grant Indicator is "Eligible for IASG" OR "Eligible Due to Grandfathering” Pell Grant = Yes

Note: To determine the student’s actual Pell Grant award amount, use the guidance provided in Volume 7 of the Federal Student Aid Handbook. Note: Watch for further guidance on additional impacts from the One Big Beautiful Bill Act (OBBBA) on packaging and Pell Eligibility determination.

Feb. 18, 2026 Update: Per the Consolidated Appropriations Act , 2026 (P.L. 119-75), the Federal Pell Grant maximum and minimum award amounts for the 2026–27 award year provided in this Dear Colleague Letter are correct and will be effective July 1, 2026, through June 30, 2027.

Dear Colleague:

This letter includes the Federal Pell Grant (Pell Grant) maximum and minimum award amounts for the 2026–27 award year (July 1, 2026, through June 30, 2027). All 2026–27 Pell Grant awards must be based on these amounts.

On Nov. 12, 2025, the president signed Public Law 119-37, making further continuing appropriations for the fiscal year ending Sept. 30, 2026, and for other purposes. Under these continuing appropriations, for the 2026–27 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 2026–27 Pell Grant maximum and minimum award amounts by Feb. 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 Pub. L. 119-37 expires on Jan. 30, 2026, unless Congress acts to extend it. That law’s Pell Grant appropriation, or a similar measure, must be extended through Sept. 30, 2026, to fund the award levels described herein for all eligible students in 2026–27. If Congress acts to modify the current maximum award for 2026–27, 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 10% of the maximum award amount for the award year. Further, under section 401(b)(1)(B)(ii), Pell Grant awards should be rounded to the nearest $5. Therefore, the Pell Grant minimum award amount for 2026–27 is $740.

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 Student Aid Index (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 a minimum Pell Grant if they meet the minimum Pell Grant eligibility requirements. For additional information please refer to the 2026–27 Student Aid Index (SAI) and Pell Grant Eligibility Guide and Volume 7 of the Federal Student Aid Handbook .

As a reminder, Pub. L. 119-21, known as the One Big Beautiful Bill Act (OBBB), prohibits an applicant whose SAI is equal to or greater than twice the maximum Pell Grant amount for the award year from receiving a Pell Grant. For the 2026–27 award year, that SAI threshold is $14,790. This prohibition does not apply to applicants who qualify for a Pell Grant under the Special Rule (dependents of certain deceased servicemembers and Public Safety Officers).

Although $7,395 is the maximum Pell Grant scheduled award for the 2026–27 award year, institutions are reminded that a student may be eligible to receive Pell Grant funds for up to 150% of the student’s Pell Grant scheduled award for an award year. Further, when determining a student’s schedule 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 reflects the Pell Grant award amount adjusted based on the student’s enrollment intensity. Finally, a student’s eligibility to receive a 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). Refer to Volume 7 of the Federal Student Aid Handbook for additional guidance.

In future Electronic Announcements, we will provide institutions with important information about system, web, and software modifications that will reflect the 2026–27 Pell Grant maximum and minimum award amounts. These include changes to the FAFSA Processing System, the Common Origination and Disbursement System, and the EDExpress for Windows software.

We appreciate your continued support in making Federal Pell Grant Program assistance available to students.

Sincerely, Richard Lucas Acting Chief Operating Officer

Last Modified: 02/18/2026