Part 3—Pell Grants Are Getting an Update: What Students & Families Need to Know

For millions of students, Pell Grants are the gateway to college. They are the largest source of federal grant aid—and unlike loans, they do not need to be repaid. The recent federal legislation has introduced updates to the Pell Grant program that will affect both traditional students and those pursuing short-term workforce training.

Let’s break down what is changing, what it is staying, and what it means for students and families.

What is Changing in the Traditional Pell Grant

Stricter Eligibility Based on Student Aid Index (SAI)

• If a student’s SAI is more than twice the maximum Pell Grant amount, they are no longer eligible—even if their income is low.

  • Example: If the max Pell Grant is $7,395, then an SAI of $14,790 or more disqualifies you.

• Foreign income (even if untaxed or offset by tax credits) now counts toward eligibility.

Introducing: Workforce Pell Grants

Want to become a medical technician, an electrician, or learn coding? You might be able to use Pell Grant money. A new type of Pell Grant is being created for students enrolled in short-term, high-quality job training programs.

What Qualifies?

Programs must be:

• 8 to 15 weeks long

• 150 to 599 clock hours

• Focused on high-skilled, high-wage, or in-demand careers

• Proven to have at least 70% completion and job placement rates

• Your state government has to approve the program

These grants are designed for students who want to upskill quickly and enter the workforce without committing to a full degree.

Important Note: Students cannot receive both traditional and Workforce Pell Grants at the same time. Also, if you are already getting enough grant money from your state, school, or private scholarships to cover your full costs, you will not be able to get a Pell Grant too. This prevents "double-dipping" where students get more aid money than they actually need.

When Do These Changes Start?

Everything kicks in on July 1, 2026—so you have time to prepare. The changes will affect the 2026-2027 award year and beyond.

Bottom Line

These changes are designed to:

• Target aid more precisely to students with the greatest need

• Support career-focused education through short-term training

While some families might see their aid reduced (especially those with foreign income), more students will benefit from the new job training opportunities.

Coming Up Next: In the next post, we will dive into the new repayment system—and how it simplifies (and complicates) life for borrowers.

Financial aid rules can be confusing, and these changes make it even more important to plan ahead. If you would like personalized guidance on college funding strategies or understanding how these changes may affect your family, please REACH OUT.