Pell Grant Eligibility Changes
- Students with an SAI equal to or greater than $14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
- Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program. Non-federal aid can be reduced to below the COA to preserve Pell Grant eligibility.
- Foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA, making this an automated process.
Federal Direct Loan Changes
- Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled.
- The steps to apply the schedule of reductions are as follows:
- Determine the student's basic eligibility for a Direct Loan in terms of general student eligibility criteria, grade level, enrollment status, intent to enroll, applicable annual loan limit, etc.
- Apply the formula: (number of credits enrolled for academic year/number of credit hours considered full-time for the academic year) x 100 = annual loan limit percentage.
- Calculate the amount of the academic year loan limit that the term represents. For example, in a two-semester academic year, a single term represents half of the annual loan limit.
- Apply the formula by term: (number of credit hours enrolled for the term/number of credit hours considered FT for that term) x 100 = annual loan limit percentage.
- Apply the Step 4 percentage to the Step 3 result to calculate the loan amount for each term/payment period within the full academic year loan period. Note that this is not a single-term loan period calculation.
FAFSA Real-Time Fraud Detection
Beginning on April 26, 2026, the Department of Education introduced a new FAFSA real-time fraud detection for the application. This means that some students will be asked to confirm their identity by presenting documentation and completing a brief, live camera check. This step must be completed on a mobile or tablet device with a camera. Applicants who begin the FAFSA form on a desktop or other non-mobile device will be provided with a QR code to continue the process on a mobile device. They may use any mobile device for this step and will not need to log in or re-enter information they provided on their FAFSA form. In some cases, the college financial aid office may contact the students to verify their identity.