Department of Education

STUDENT FINANCIAL ASSISTANCE

Fiscal Year 2023 Budget Request

CONTENTS

Page

Appropriations Language..............................................................................................................1

Analysis of Language Provisions and Changes............................................................................2

Appropriation, Adjustments and Transfers....................................................................................3

Summary of Changes ...................................................................................................................4

Authorizing Legislation..................................................................................................................5

Appropriations History...................................................................................................................6

Significant Items in FY 2022 Appropriations Reports ...................................................................7

Summary of Request ....................................................................................................................8

Federal Pell Grants...................................................................................................................9

Federal Supplemental Educational Opportunity Grants .........................................................22

Federal Work-study ................................................................................................................27

Iraq and Afghanistan Service Grants......................................................................................34

Account Summary Table.............................................................................................................37
STUDENT FINANCIAL ASSISTANCE

1

Appropriations Language

For carrying out subparts 1, 3, and 10 of part A, and part C of title IV of the HEA, 

$26,345,352,000, which shall remain available through September 30, 2024:1

The maximum Pell Grant for which a student shall be eligible during award year 2023-2024

shall be $6,3352.

GENERAL PROVISIONS

(CANCELLATION)

SEC. 307. Of the amounts appropriated under Section 401(b)(7)(A)(iv)(XI) of the Higher 

Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iv)(XI)) for fiscal year 2023, $141,000,000 are 

hereby cancelled3.

NOTE

A full-year 2022 appropriation for this account was not enacted at the time the budget was prepared; therefore, 

the budget assumes this account is operating under the Continuing Appropriations Act, 2022 (Division A of P.L. 117-

43, as amended). The amounts included for 2022 reflect the annualized level provided by the continuing resolution.

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document which follows the appropriation language.
STUDENT FINANCIAL ASSISTANCE

2

Analysis of Language Provisions and Changes

Language Provision Explanation

1For carrying out subparts 1, 3, and 10 of part 

A of title IV of the HEA, $26,345,352,000 

which shall remain available through 

September 30, 2024.

This language sets the availability of funds 

provided under the account through the end of 

fiscal year 2024.

2The maximum Pell Grant for which a student 

shall be eligible during award year 2023-2024

shall be $6,335.

This language sets the maximum Pell Grant 

award for award year 2023-24. Including the 

Budget’s proposed increase to mandatory 

funding provided in the Higher Education Act

(HEA), the Pell Grant maximum award in 

award year 2023-24 would be $8,670.

GENERAL PROVISIONS

3Of the amounts appropriated under Section 

401(b)(7)(A)(iv)(XI) of the Higher Education 

Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iv)(XI)) 

for fiscal year 2023, $141,000,000 are hereby 

cancelled.

The 2023 request includes a cancellation of 

$141,000,000 in mandatory funds to offset the 

increase in mandatory costs resulting from the 

increase to the maximum discretionary award.
STUDENT FINANCIAL ASSISTANCE

3

Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2021 2022 2023

Discretionary: 

Discretionary Appropriation $24,545,352 $24,545,352 $26,345,352

Mandatory:

Mandatory Appropriation 6,310,171 6,238,692 12,989,743

Total, discretionary and 

mandatory appropriation 30,855,523 30,784,044 39,335,095
STUDENT FINANCIAL ASSISTANCE

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Summary of Changes

(dollars in thousands)

2022 $30,784,044

2023 39,335,095

Net change +8,551,051

Increases: 2022 base

Change 

from base

Program: 

Increase in indefinite mandatory funding required for the addon to the maximum Pell Grant due to increased estimated 

program costs, including costs attributable to the 

discretionary request.

$5,096,000 +$6,864,000

Increase in the requested discretionary Pell Grant 

appropriation to fund a $900 increase to the discretionary 

maximum award. 

22,475,352 +1,800,000

Increase in definite mandatory funding for use in the Pell 

Grant program due to amount provided in the Higher 

Education Act for FY 2023.

1,142,000 +28,000

Increase in Iraq and Afghanistan Service Grants funding 

required due to the proposed higher maximum award.

692 +51

Subtotal, increases +8,692,051

Decreases: 2022 base

Change 

from base

Program: 

Decrease in definite mandatory funding in the 

HEA to offset the mandatory costs associated 

with Pell Grant policy proposals.

1,142,000 -141,000

Subtotal, decreases -141,000

Net change +8,551,051
STUDENT FINANCIAL ASSISTANCE

5

Authorizing Legislation

(dollars in thousands)

Activity

2022 

Authorized

2022

Estimate

2023 

Authorized

2023

Request

Federal Pell grants (HEA-IV-A-1): 

Career and Technical: Federal Pell grants (discretionary) 01 $22,475,352 To be determined $24,275,352

Career and Technical: Federal Pell grants (mandatory) Indefinite 6,238,000 Indefinite 12,989,000

Federal supplemental educational opportunity grants 

(HEA-IV-A-3) 02 880,000 To be determined 880,000

Federal Work-study (HEA-IV-C) 03 1,190,000 To be determined 1,190,000

Iraq and Afghanistan Service Grants (HEA-IV-A-10) Indefinite 692 Indefinite 743

Total discretionary appropriation 24,545,352 26,345,352

Portion of the discretionary request subject to 

reauthorization 0 26,345,352

Total mandatory appropriation 6,238,692 12,989,783

Total appropriation 30,784,044 39,335,095

1 The GEPA extension expired September 30, 2018; reauthorization for FY 2023 is expected through appropriations action. 2 The GEPA extension expired September 30, 2015; reauthorization for FY 2023 is expected through appropriations action. 3 The GEPA extension expired September 30, 2015; reauthorization for FY 2023 is expected through appropriations action.
STUDENT FINANCIAL ASSISTANCE

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Appropriations History

(dollars in thousands)

(Year

Budget 

Estimate 

to Congress

footnote House 

Allowance

footnote Senate 

Allowance footnote

Appropriationfootnote

20141 $24,685,281 N/A $24,536,210 $24,486,210

20152 24,486,210 N/A 24,233,210 24,198,210

20163 24,198,210 $23,828,210 24,129,352 24,198,210

20174 24,198,210 22,888,210 24,198,210 24,198,210

20185 22,932,626 24,198,210 24,198,210 24,033,880

20196 22,675,352 24,445,352 24,445,352 24,445,352

20207 22,975,352 24,937,352 24,445,352 24,520,352

20218 22,975,352 24,565,352 24,520,352 24,545,352

20229 27,545,352 27,187,352 26,413,460 24,545,352

2023 26,345,352

1 The House allowance is shown as N/A because there was no Subcommittee action; the level for the Senate 

allowance reflects Committee action only.

2 The House allowance is shown as N/A because there was no Subcommittee action; the level for the Senate 

allowance reflects Senate Subcommittee action only.

3 The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations bill, which 

proceeded in the 114th Congress only through the House Committee and Senate Committee. 4 The levels for the House and Senate allowances reflect Committee action on the regular annual 2017 

appropriations bill; the Appropriation reflects the Consolidated Appropriations Act, 2017.

5 The level for the House allowance reflects floor action on the Omnibus appropriations bill; the Senate allowance 

reflects Committee action on the regular annual 2018 appropriations bill; the Appropriation reflects the Consolidated 

Appropriations Act, 2018 (P.L. 115-141). 6 The levels for the House and Senate allowance reflect Committee action on the regular annual 2019 appropriations 

bill; the Appropriation reflects enactment of the Department of Defense and Labor, Health and Human Services, and 

Education Appropriations Act, 2019 (P.L. 115-245). 7 The Senate allowance reflects the Chairman’s mark; the Appropriation reflects the Further Consolidated 

Appropriation Act, 2020 (P.L. 116-94). 8 The level for the Senate Allowance reflects the Chairman’s mark; the Appropriation reflects Division H of the 

Consolidated Appropriations Act, 2021 (P.L. 116-260). 9 The House allowance reflects floor action on the FY 2022 Consolidated Appropriations Act; the Senate allowance 

reflects the Chairman’s mark; and the Appropriation reflects the annualized continuing resolution level.
STUDENT FINANCIAL ASSISTANCE

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Significant Items in FY 2022 Appropriations Reports

Briefing on Expanding Eligibility for Federal Pell Grants

House: The Committee requests a briefing within 180 days of enactment of this Act on 

expanding eligibility for Pell Grants to provide better access to higher education 

opportunities and better serve a modernized economy and diverse workforce, 

including recent experimental site initiatives.

Response: The Department will comply with this directive and take the necessary steps to 

provide the requested briefing.

Update on Implementation of Pell for Incarcerated Students

House: The Committee notes Pell Grants are now available for incarcerated individuals. 

The Committee supports efforts to ensure those who are eligible are provided 

opportunities to access the financial assistance. The Committee requests an 

update on this effort in the fiscal year 2023 congressional justification.

Response: The Department continues to support incarcerated students through the Second 

Chance Pell experimental site initiative (ESI) and has extended the ESI as on 

onramp towards full implementation of the expanded Pell Grant eligibility in the 

2023-24 award year.
STUDENT FINANCIAL ASSISTANCE

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Summary of Request

The Administration’s fiscal year 2023 budget request will provide $125 billion in new Federal 

grants, loans, and work-study assistance to help students pay for postsecondary education and 

compete for high-quality jobs in the expanding economy. Overall, funds requested for programs 

in the Student Financial Assistance account would provide $41.2 billion in aid1 and 8.9 million 

student aid awards. 

The fiscal year 2023 funding proposed for the Student Financial Assistance (SFA) account is 

$39.3 billion, approximately $8.5 billion more than a fiscal year 2022 annualized CR based on

the fiscal year 2021 appropriation. This includes a discretionary request of $26.3 billion: $24.3

billion for Pell Grants, $1.2 billion for Federal Work-study (FWS), and $880 million for 

Supplementary Educational Opportunity Grants (SEOG). $13.0 billion in mandatory funds are 

requested in fiscal year 2023 for the Pell Grant program.

The Administration’s 2023 budget proposal would increase Pell Grant funding in fiscal year 

2023, taking a significant step towards doubling the maximum award by 2029. Under the fiscal 

year 2023 proposal, the maximum Pell Grant in award year 2023-24 will be $8,670, an increase 

of $2,175 over the 2021-2022 award year. Of that increase, $1,275 is an increase to the 

mandatory add-on, and $900 is an increase to the discretionary maximum award. Additionally, 

the Administration intends to work with Congress to ensure access to student financial aid for 

students who are Deferred Action for Childhood Arrivals recipients, commonly known as 

DREAMers.

Fiscal year 2023 program-specific funding information and policy proposals, as well as program 

performance information that applies to all student assistance programs, are discussed in the 

Student Aid Overview.

1 Total aid available is based on new budget authority and any required matching funds, less allowable administrative 

costs.
STUDENT FINANCIAL ASSISTANCE

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Federal Pell Grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 1)

(dollars in thousands)

FY 2023 Authorization: To be determined

Budget authority:1

Period of fund availability: 

2022 Estimate 2023 Request Change

Program funds: 

Discretionary appropriation $22,475,352 $24,275,352 +$1,800,000

Mandatory appropriation 5,096,000 11,960,000 +476,000

Mandatory appropriation for 

discretionary program costs2 1,142,000 1,029,000 -113,000

Subtotal, current year funding 28,713,352 37,264,352 +8,551,000

Pell Grant program costs 26,726,000 38,748,000 +12,022,000

PROGRAM DESCRIPTION

The Federal Pell Grant program helps ensure access to postsecondary education for low- and 

moderate-income undergraduate students by providing grants that help meet postsecondary 

education costs. The program also promotes lifelong learning by providing resources for lowand moderate-income adults now in the workplace to return to school to upgrade skills.

The Department funds all participating institutions’ eligible Pell applicants. Unlike CampusBased Programs (Supplemental Educational Opportunity Grants and Federal Work-study), a 

student’s eligibility is not dependent on the availability of funds awarded to the institution.

A Pell Grant is the foundation of a student’s financial aid package to which other forms of aid 

are added. The amount of a student’s Pell Grant is dependent on the student’s “expected family 

contribution” (EFC), cost of education, whether the student attends school full- or part-time, and 

whether the student’s program is a full academic year in length or less. Pell Grant 

disbursements are made to a student at least once every term during the award year or at the 

beginning and mid-point for programs without terms.

Budget authority in the Pell Grant program is available for 2 fiscal years; for example, funds 

become available for obligation on October 1 of the fiscal year in which they are appropriated 

and remain available through September 30 of the following fiscal year. Funds proposed for 

1Table reflects discretionary budget appropriations and mandatory budget authority in support of program costs for 

each fiscal year.

2The Higher Education Act (HEA) provides $1,170,000 thousand in mandatory funding to be used for discretionary 

program costs in FY 2023.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

10

fiscal year 2023 would be used for grants in the 2023-24 award year, which runs from July 1, 

2023, through June 30, 2024. If Pell Grant costs for a given academic year exceed the 

corresponding appropriation, the Department uses the next fiscal year’s appropriation to cover 

the balance.

The Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act) 

of 2019 excepted the Department from restrictions of Section 6103 of the Internal Revenue 

Code. This exception authorizes the Internal Revenue Service (IRS) to disclose tax return 

information directly to the Department for the purpose of administering certain Federal aid 

programs. One of the primary causes of improper payments in the Pell Grant program is failure 

to verify financial data accurately. This new exception is expected to reduce improper payments 

by simplifying and improving the accuracy of FAFSA filing by prepopulating certain fields.

Recent and projected funding: The Pell Grant program is the single largest source of grant aid 

for postsecondary education and helps ensure low- and moderate- income students can afford 

higher education and successfully attain a postsecondary credential. In 2022, over 6.1 million 

students are expected to receive Pell Grant awards of up to $6,495. The program operates as 

an entitlement to eligible students once the maximum grant, award rules, and payment schedule 

are established. The Higher Education Act (HEA) does not provide for the denial of an award to 

any student who meets the qualifying conditions, nor does it allow the Secretary to reduce any 

student’s award level. 

Mandatory funding: The College Cost Reduction and Access Act authorized mandatory funding 

to support increases to the Pell maximum award set in each fiscal year’s appropriations act. The 

Health Care and Education Reconciliation Act (HCERA) amended that provision and increased 

the maximum award by $690 for award years 2010-11 through 2012-13, and by the Consumer 

Price Index (CPI) from 2013 to 2017. Beginning with the 2018-19 award year, the add-on award 

is equal to the award year 2017-18 level and is not increased by the CPI.

Pell Grant program scoring rule: The congressional budget resolution for fiscal year 2006 

included a rule under which appropriations bills for the Pell Grant program are scored by the 

Congressional Budget Office for the estimated budget authority needed to fund the program for 

that year, or the requested budget authority, whichever is greater. If the appropriation exceeds 

the program cost as estimated at the beginning of the subsequent fiscal year, any surplus is 

available to reduce the appropriation needed to support that subsequent year’s program costs. 

Conversely, if the appropriation is lower than the updated estimated program cost, the 

difference is automatically scored against the subsequent year’s appropriation.

Given the nature of the program, it is reasonable to consider Pell Grants an individual 

entitlement for purposes of budget analysis and enforcement. Congress has chosen to continue 

treating the portion funded in annual appropriations acts as discretionary, continuing the scoring 

of budget authority for Pell Grants against the appropriations allocations established annually 

under section 302 of the Congressional Budget Act. Like previous years, this proposal presents 

the portion of Pell Grants provided in the annual appropriations act as discretionary funding.

Need analysis formula: The need analysis formula for the Title IV need-based student aid 

programs, stipulated in the HEA, determines financial eligibility for Pell Grants and is applied 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

11

uniformly to all applicants. This formula determines a student’s EFC. The fundamental elements 

in the formula are the student’s (and in the case of dependent students, their parents’) income 

and assets (excluding the value of the family’s home or farm), the family’s household size, and 

the number of family members (excluding the student’s parents) attending postsecondary 

institutions. The EFC is the sum of (1) a percentage of net income (remaining income after 

subtracting allowances for taxes and basic living expenses), and (2) a percentage of net assets 

(assets remaining after subtracting an asset protection allowance). Different assessment rates 

and allowances are used for dependent students, independent students, and independent 

students with dependents. For award year 2022-23, the income threshold at which a dependent 

student receives an automatic zero EFC determination is $27,000.

FAFSA Simplification Act: In December of 2020, Congress passed the FAFSA Simplification 

Act, making several changes to the need analysis formula and Pell award determination.

The legislation, which transitions the EFC to the Student Aid Index (SAI), includes the following 

changes:

• Maximum Pell Grant eligibility will be determined by students’ family income in relation to the 

Federal Poverty Level (FPL) for their family size. Unmarried independents with dependents 

and unmarried parents of dependents with Adjusted Gross Income (AGI) under 225 percent

of FPL will be eligible for maximum awards as well as all other students with AGI under 175

percent of FPL.

• The SAI calculation includes the following changes to the current EFC formula:

o Several financial questions will be removed, such as items from the untaxed income 

worksheet,

o More applicants will be eligible for the simplified formula, which does not require asset 

information,

o Income protection allowances will be increased for all applicants,

o The State tax allowance will be removed, and

o The consideration for multiple family members in school will be removed.

• Applicants who are not eligible under the maximum award eligibility formula or the SAI 

formula may still be eligible for a minimum award if their AGI is below the following FPLs:

o 400 percent for unmarried independents with dependents,

o 350 percent for married independents with dependents,

o 325 percent for unmarried parents of dependents, and

o 275 percent for all others.

• Awards for less than full-time enrollment are adjusted proportionally and may fall below the 

minimum award.

Institutional participation: Approximately 4,500 postsecondary institutions currently participate in 

the Pell Grant program. Institutions that lose their eligibility to participate in the loan programs 

due to high default rates are also precluded from participation in the Pell Grant program.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

12

Student participation: Students may use their grants at any participating postsecondary

institution. Pell Grants are disbursed to the student through the institution. The Pell Grant 

program is the largest source of grant aid to students under the HEA, with approximately 39 

percent of all undergraduates receiving a Pell Grant.

Recipients must be undergraduates enrolled with the purpose of obtaining a degree or 

certificate at an eligible institution and, with an exception for certain teacher certificate 

programs, cannot have previously received a bachelor’s degree.

Students must also have a high school diploma (or its equivalent) or have been homeschooled. 

Students who first enrolled in an eligible program prior to July 1, 2012, who did not have a high 

school diploma and were not homeschooled, may receive a Pell Grant by meeting one of the 

ability-to-benefit (ATB) alternatives. These alternatives include: (1) passing an independently 

administered, Department-approved ability-to-benefit test; (2) completing at least 6 credit hours 

or 225 clock hours that are applicable toward a degree or certificate offered by the institution; or 

(3) completing a State process approved by the Secretary of Education.

Students who did not have a high school diploma, were not homeschooled, and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ATB 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA. 

Less than full-time students are eligible for pro rata awards based on their enrollment status. As 

of July 1, 2012, students are eligible for Pell Grants for a maximum of 12 semesters (or an 

equivalent) of full-time enrollment.

A student in default on a loan made under any Title IV HEA loan program, or who owes an 

overpayment on any other previously received Federal student aid, may not receive additional 

funds under the program unless the student repays the debt in full or makes satisfactory 

repayment arrangements with the holder of the debt.

Annual award amount: The annual award amount may vary from the statutory minimum 

payment up to the maximum authorized by statute for the academic year. The Higher Education 

Opportunity Act of 2008 enacted a minimum Pell Grant award of 10 percent of the maximum 

award. That is, students who do not qualify for at least 10 percent of the maximum grant do not 

receive a Pell award. Appropriations acts set annual maximum award levels. For award year 

2022-23, the 2022 annualized CR level supports an award of $5,435. With the mandatory addon award established by the HCERA, the maximum award will be $6,495. The minimum Pell 

award for award year 2022-23 is $650.

The aggregate Pell Grant award is the lesser of: 

• the maximum award (as set in annual appropriations acts), plus the additional amount 

provided by mandatory funds, minus the EFC; or

• the student’s cost of attendance, minus the EFC.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

13

Additionally, students who complete more than one academic year within an award year are 

eligible for larger awards under the “year-round Pell” provision, which was enacted in the fiscal 

year 2017 Consolidated Appropriations Act. Awards under this provision are capped at 150

percent of the student’s regular award. 

Cost of attendance: For purposes of determining the Pell Grant award, the postsecondary 

institution establishes the cost of attendance using the following cost items: 

• tuition and fees;

• an allowance for books, supplies, transportation, dependent care, and miscellaneous 

expenses, including a reasonable allowance for the documented rental or purchase of a 

personal computer; and

• living allowances of the actual amount charged by the institution for room and board for 

students living at school; an amount determined by the institution for students without 

dependents living at home with parents; or, for all other students, an amount based on the 

expenses reasonably incurred for room and board.

The cost of attendance for less-than-half-time students includes tuition and fees; an allowance 

for books, supplies, and transportation; and dependent care.

Financial aid administrator discretion: The HEA stipulates financial aid administrators may, on 

the basis of adequate documentation and on a case-by-case basis, adjust a student’s Pell Grant 

award by changing the cost of attendance or the value of data elements used to calculate the 

EFC to reflect “special circumstances,” such as the following: 

• tuition expenses at an elementary or secondary school;

• medical or dental expenses not covered by insurance;

• unusually high childcare costs;

• recent unemployment of an independent student or a family member;

• changes in a student’s housing status resulting in homelessness;

• the number of parents enrolled at least half-time in a degree or certificate or other program 

leading to a recognized educational credential at an institution participating in any of the 

Title IV programs; or

• other changes in a family’s income, assets, or a student’s status.

Institutional payments: The HEA provides for payment to institutions of $5 per Pell Grant 

recipient to reimburse institutions for a share of the cost of administering the Pell Grant 

program. Funds for these payments are paid from the Pell Grant appropriation. In award year 

2022-23, these payments will total $31 million.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

14

Because of the structure of the Pell Grant program, annual funding levels may not equal annual 

expenditures.

Discretionary and mandatory funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands) 

2018 $29,806,691

2019 29,233,392

2020 29,618,352

2021 28,784,934

2022 Estimate 28,713,352

FY 2023 BUDGET REQUEST

The Administration’s budget request for fiscal year 2023 includes $24.3 billion in discretionary 

funding for the Pell Grant program, $1.8 billion more than a fiscal year 2022 annualized CR 

based on the fiscal year 2021 appropriation. This discretionary request, plus $13.0 billion in 

mandatory funding, establishes the total fiscal year 2023 Pell funding level at $37.3 billion. 

The request would increase the maximum Pell Grant by $2,175 in fiscal year 2023 as a down 

payment on the President’s commitment to doubling the grant by 2029. The fiscal year 2023

request proposes a $900 increase to the discretionary award. The Administration also proposes 

an increase of $1,275 to the mandatory add-on award. These increases would result in a total 

maximum award of $8,670 in award year 2023-24. 

Over the last 50 years, the maximum Pell Grant went from covering nearly 80 percent of the 

cost of a four-year college degree to less than 30 percent — leading millions of low-income 

students to take out debt to finance their education. One in three community college students 

receive Pell Grants to pay for their education. Among students of color, nearly 60 percent of 

Black, half of American Indian or Alaska Native, almost half of Latino, and over one-third of 

Native Hawaiian or Pacific Islander students rely on Pell Grants to pay for college. 

The request for this program is best understood in the context of the Administration’s proposals 

for student aid programs as a whole. Accordingly, program-specific funding information and 

policy proposals also are discussed in the Student Aid Overview.

PELL GRANT PROGRAM HISTORICAL DATA

Applicant and Recipient Growth 

The graphs on the following pages show the latest applicant, recipient, and aid available trends 

for the Pell Grant program. A valid applicant is an undergraduate student who submits a Free 

Application for Federal Student Aid (FAFSA) with sufficient data to calculate an EFC and 

determine Pell Grant eligibility. Applicants are estimated at 14.7 million for award year 2023-24, 

an increase of over 300,000 compared to award year 2022-23. Many factors affect applicant 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

15

growth, including demographic trends and changes in economic conditions, such as labor 

market demands. Most recently, the COVID-19 pandemic has also been a factor as many 

students have foregone pursuing a postsecondary education. 

Pell Grant recipients are estimated at nearly 6.7 million in award year 2023-24, an increase of 

524,000 over award year 2022-23, of which an estimated 351,000 would be newly eligible 

based on the increased maximum award. Factors affecting recipient growth include family 

incomes, need analysis, college costs, the level of the maximum Pell Grant award, and changes 

in the volume of applicants.

The following tables show program information consistent with actual or requested funding 

levels.

Federal Pell Grants Applicant Trends1

Award Year Valid Applicants2 Applicant Growth: 

Number

Applicant Growth: 

Percent Change

2007-08 12,299,232 487,321 4.13%

2008-09 13,883,288 1,584,056 12.88%

2009-10 16,482,495 2,599,207 18.72%

2010-11 17,625,778 1,143,283 6.94%

2011-12 18,458,701 832,923 4.73%

2012-13 18,294,947 -163,754 -0.89%

2013-14 17,915,446 -379,501 -2.07%

2014-15 17,312,207 -603,239 -3.37%

2015-16 16,362,617 -949,590 -5.49%

2016-17 15,462,153 -900,464 -5.50%

2017-18 15,529,912 67,759 0.44%

2018-19 15,240,392 -289,520 -1.86%

2019-20 14,991,786 -248,606 -1.63%

2020-21 14,668,159 -323,627 -2.16%

2021-22 14,284,631 -383,528 -2.61%

2022-23 14,369,290 84,659 0.59%

2023-24 14,724,940 355,650 2.48%

1Applicant data through award year (AY) 2020-21 are considered final and are taken from internal operational reports. 

Applicant data for award years 2021-22 through 2023-24 are estimates and are subject to change.

2A valid applicant is an undergraduate student who submits an application with sufficient data to calculate an EFC 

and determine Pell Grant eligibility.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

16

NOTE: Applicants reflect those applying for all Federal student financial assistance, including those receiving only 

non-need-based student loans.

Award years 2021-22 through 2023-24 are estimates.

Number of Recipients: 

Under current estimates, the funds requested for fiscal year 2023 would support Pell Grant 

awards to nearly 6.7 million recipients.

 -

 3,000,000

 6,000,000

 9,000,000

 12,000,000

 15,000,000

 18,000,000

1973-741977-781981-821985-861989-901993-941997-982001-022005-062009-102013-142017-182020-212023-24

Pell Grant Program Historical Data

Applicants and Recipients (1973-74 to 2023-24)

Applicants Recipients
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

17

Aid Available: 

Under current estimates, the Administration’s fiscal year 2023 proposal would provide $38.7

billion in Pell Grants to students.

NOTE: Award years 2020-21 through 2022-23 are estimates.

Maximum Award:

The Administration proposes to increase the base discretionary maximum award to $6,335 for 

award year 2023-24 through discretionary and definite mandatory funding. The cost of providing 

the mandatory add-on that increases the maximum award is funded by permanent mandatory 

indefinite funding as provided through HCERA. The Budget proposes to amend the HCERA to 

increase the award to $8,670 in award year 2023-24.

$0

$6

$12

$18

$24

$30

$36

$42

1973-741977-781981-821985-861989-901993-941997-982001-022005-062009-102013-142017-182020-212023-24

Pell Grant Program Historical Data

Aid Available (1973-74 to 2022-23)

$ in Billions
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

18

Pell Maximum Award, Aid Available, and Recipients

Award 

Year

Maximum 

Award

Aid Available 

(dollars in millions) Recipients

2018-19 $6,095 $28,405 6,863,152 

2019-20 6,195 28,419 6,746,325 

2020-21 6,345 26,437 6,221,000 

2021-22 6,495 26,400 6,104,000 

2022-23 6,495 26,695 6,133,000 

2023-24 8,670 38,715 6,657,000 

The following table shows the Pell Grant maximum award levels, budget authority by type, and 

program costs for fiscal years 2013 to 2023. Fiscal year 2023 reflects the President’s Budget 

policies.

Pell Maximum Award Levels, Budget Authority, and Program Costs

(Dollars in thousands, except for maximum award levels)

FY Maximum 

Award

Discretionary 

Budget 

Authority

Mandatory 

Budget 

Authority

Mandatory 

for 

Discretionary 

Budget 

Authority

Total 

Budget 

Authority

Program 

Cost

2014 $5,730 $22,778,352 $4,835,469 $588,000 $28,201,821 $30,649,000

2015 5,775 22,475,352 5,152,933 0 27,628,285 28,582,000

2016 5,825 22,475,352 4,840,361 0 27,315,713 26,918,000

2017 5,920 22,475,352 5,680,400 1,320,000 29,475,752 28,704,000

2018 6,095 22,475,352 5,997,339 1,334,000 29,806,691 28,439,000

2019 6,195 22,475,352 5,388,040 1,370,000 29,233,392 28,453,000

2020 6,345 22,475,352 5,571,420 1,405,000 29,451,772 26,468,000

2021 6,495 22,475,352 5,167,582 1,142,000 28,784,934 26,431,000

2022 6,495 22,475,352 5,096,000 1,142,000 28,713,352 26,726,0001

2023 8,670 24,275,352 11,960,000 1,029,000 37,405,352 38,748,00018

1Estimate
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

19

Distribution of Pell Grants

Distribution of Pell Grants by Student Status and Income Level:

The tables below illustrate the distribution of Pell Grant funds to dependent and independent 

students at various income levels. In 2020-2021, approximately 63 percent of all Pell Grant 

recipients had incomes less than or equal to $30,000. Nearly all students at those income 

levels are eligible for the maximum award, but the average award accounts for factors like parttime enrollment and cost of attendance that can reduce the award received.

Distribution of Pell Grants to Dependent Undergraduates in 2020-21

Income Level Recipients Available Aid Average 

Award

0 - $6,000 361,875 $1,906,453,550 $5,268 

6,001 - 9,000 70,804 376,759,624 5,321

9,001 - 20,000 553,457 2,997,103,699 5,415

20,001 - 30,000 561,821 3,032,976,779 5,398

30,001+ 1,550,543 5,941,895,568 3,832

Total Dependent 3,098,500 14,255,189,220 4,601

Independent students make up nearly half of the students receiving assistance under the Pell 

Grant program. These recipients tend to be in the lowest income groups, as shown below.

Distribution of Pell Grants to Independent Undergraduates in 2020-21

Income Level Recipients Available Aid Average 

Award

0 - $1,000 463,736 $2,080,156,461 $4,486 

1,001 - 3,000 128,254 591,671,870 4,613

3,001 - 6,000 183,702 848,936,648 4,621

6,001 - 9,000 189,303 876,486,919 4,630

9,001 - 15,000 439,780 1,957,521,665 4,451

15,001 - 20,000 356,170 1,356,696,163 3,809

20,001 - 30,000 524,048 1,776,832,911 3,391

30,001+ 720,507 2,656,988,143 3,688

Total Independent 3,005,500 12,145,290,780 4,041

All Undergraduates 6,104,000 26,400,480,000 4,325
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

20

Distribution of Pell Grants by Type of Institution

The table below shows the distribution of Pell Grants to students attending different types of 

institutions. In 2020-2021, approximately 44 percent of the total aid available for Pell Grants 

went to students attending Public 4-Year schools, and approximately 24 percent went to 

students attending Public 2-Year schools.

Over the lifetime of the Pell Grant program, the share of Pell Grant aid to proprietary institutions 

has changed significantly. For example, in the 2009-10 award year, approximately 25 percent of 

total Pell Grant aid went to students at proprietary institutions; in the 2020-21 award year, that 

figure was 15 percent.

Distribution of Pell Grants by Type of Institution in 2020-21

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

Pell Aid

Public 4-Year 2,601,779 $11,610,480,977 $4,463 44.0%

Public 2-Year 1,614,775 6,448,559,630 3,993 24.4%

Private 1,003,415 4,453,793,756 4,439 16.9%

Proprietary 884,031 3,887,645,636 4,398 14.7%

Total 6,104,000 26,400,479,999 4,325 100.0%

PROGRAM OUTPUT MEASURES 

(dollars in thousands)

Output Measures 2021 2022 2023

Recipients 6,104,000 6,133,000 6,657,000

Aid available to students1 $26,400,480 $26,695,335 $38,714,715

Maximum grant (in whole dollars) $6,495 $6,495 $8,670

Minimum grant (in whole dollars)2 $649 $649 $867

Average grant (in whole dollars) $4,325 $4,353 $5,816

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, 

program goals, objectives, indicators and performance data and targets; and an assessment of 

the progress made toward achieving program results. Achievement of program results is based 

1Overall aid available reflects the estimated cost of the program minus administrative costs of $5 per recipient.

2The minimum grant reflects the statutory minimum, but the actual minimum grant published by the Department may 

be slightly higher due to the calculation methodology used in the payment schedule.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

21

on the cumulative effect of the resources provided in previous years and those requested in 

fiscal year 2023 and future years, as well as the resources and efforts invested by those served 

by this program.

Because the Federal Pell Grant program account relies on the same performance measures, 

strategies, and program improvement activities that apply to all the student financial assistance 

grant programs, Pell program performance is discussed in the Student Aid Overview and is 

not repeated here. 
STUDENT FINANCIAL ASSISTANCE

22

Federal Supplemental Educational Opportunity Grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 3)

(dollars in thousands)

FY 2023 Authorization: 01

Budget authority: 

2022 Estimate 2023 Request Change

$880,000 $880,000 +$0

PROGRAM DESCRIPTION

The Federal Supplemental Educational Opportunity Grant (SEOG) program provides needbased grant aid to eligible undergraduate students to help reduce financial barriers to 

postsecondary education. Federal funding allocations are awarded to qualifying postsecondary 

institutions under a statutory formula. Unlike the Pell Grant program, the SEOG program is 

operated by institutional financial aid administrators who have substantial flexibility in 

determining student awards.

The funding provided for the SEOG program is available for 2 years. Funds become available 

for obligation on October 1 of the fiscal year in which they are appropriated and remain available 

through September 30 of the following fiscal year. Funds available for the current fiscal year 

2023 will be used for the 2023-24 award year, which runs from July 1, 2023 through June 30, 

2024.

Institutional participation: Roughly 3,600 postsecondary institutions receive funds under the 

SEOG program, compared to more than 4,500 institutions that administer Pell Grants. Under 

the statutory formula, funds are distributed to institutions first on the basis of the institution's 

fiscal year 1999 SEOG program base guarantee and pro rata share (a hold harmless basis), 

and then on the basis of the aggregate need of the eligible undergraduate students in 

attendance. 

Institutional matching: Participating institutions are required by statute to contribute at least 

25 percent of the SEOG award amounts. The institutional share can be met using the 

institution's own resources, State grants, or funds from foundations or other charitable 

organizations.

Student participation: Students qualify for grants of up to $4,000 by demonstrating financial 

need under the need analysis formula used for Federal student aid. Institutions must give 

priority to Pell Grant recipients with demonstrated “exceptional need” (students with the lowest 

Expected Family Contributions [EFCs] at the institution).

Remaining awards are then available for students with exceptional need who are not Pell Grant 

recipients. In addition, if any part of the institution’s SEOG allocation determination to students 

is based, in part, on the financial need demonstrated by students who are independent or 

1The GEPA extension expired September 30, 2015; reauthorization for FY 2023 is expected through appropriations 

action.
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

23

attending the institution less-than-full-time, then a reasonable portion of the allocation must be 

made available to such students.

Recipients must be undergraduates, cannot have received a bachelor’s degree, and must be 

enrolled with the purpose of obtaining a degree or certificate at an eligible institution. 

Approximately 9 percent of undergraduates receive SEOG awards.

Students must also have a high school diploma (or its equivalent) or have been homeschooled. 

Students who first enrolled in an eligible program prior to July 1, 2012, who did not have a high 

school diploma and were not homeschooled, may receive a Pell Grant by meeting one of the 

ability-to-benefit (ATB) alternatives. These alternatives include: (1) passing an independently 

administered, Department-approved ability-to-benefit test; (2) completing at least 6 credit hours 

or 225 clock hours that are applicable toward a degree or certificate offered by the institution; or 

(3) completing a State process approved by the Secretary of Education.

Students who did not have a high school diploma, were not homeschooled, and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ATB 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA.

A student in default on a loan made under any Title IV HEA loan program, or who owes an 

overpayment on any other previously received Federal student aid, may not receive additional 

funds under the program unless the student repays the debt in full or makes satisfactory 

repayment arrangements with the holder of the debt.

Institutional administrative provisions 

• Administrative costs. Each institution’s administrative cost allowance is based upon its 

expenditures for both campus-based programs – SEOG and Federal Work-study (FWS). 

During an award year, an institution may use up to 5 percent of the first $2.75 million of its 

program expenditures to meet administrative costs associated with these programs; plus up 

to 4 percent of expenditures greater than $2.75 million but less than $5.5 million; and up to 

3 percent of expenditures greater than $5.5 million.

• Transferability of funds. An institution may transfer up to 25 percent of FWS funds to SEOG. 

Up to 10 percent of an institution’s SEOG funds may, at the discretion of the institution, be 

used for expenditures for the preceding fiscal year, and up to 10 percent of an institution’s 

SEOG funds may remain available for the next fiscal year.

• Reallocation of funds. Excess funds available because of underutilization by institutions are 

reallocated to other institutions in accordance with program regulations. An institution 

returning more than 10 percent of its allocation will have its subsequent allocation reduced 

by the same amount. Under The Hurricanes Harvey, Irma, and Maria Education Relief Act of 

2017, the Secretary was provided authority to waive reallocation rules; excess SEOG funds 

were reallocated to institutions that were directly affected by the 2017 hurricanes or were 

located in disaster areas.
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

24

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands) 

2018 $840,000

2019 840,000

2020 865,000

2021 880,000

2022 Estimate 880,000

FY 2023 BUDGET REQUEST

The Administration’s fiscal year 2023 budget request proposes to maintain the SEOG program 

funding at the same level as a fiscal year 2022 annualized CR of $880 million. Additionally, the 

Administration intends to work with Congress to ensure access to student financial aid for 

students who are Deferred Action for Childhood Arrivals recipients, commonly known as 

DREAMers.

The request for this program is best understood in the context of the Administration’s proposals 

for the student aid programs as a whole. Accordingly, student assistance policy proposals are 

discussed in greater detail in the Student Aid Overview.

Distribution of SEOG Funds by Student Status and Income Level 

The following tables, structured to compare across the programs in the Student Financial 

Assistance account, show the distribution of SEOG funds to dependent and independent 

students at various income levels in 2019-20. These tables include the most recent distributional 

data available, which may not match directly with the data provided in the Program Output 

Measures section.

In 2019-20, 67 percent of dependent SEOG recipients had family income levels under $30,000,

and 70 percent of independent SEOG recipients had family income levels under $20,000.

Distribution of SEOG to Dependent Undergraduates in 2019-20

Family Income Level Recipients Available Aid Average 

Award

0 - $5,999 136,059 $112,500,365 $827

6,000 - 11,999 77,998 67,247,248 862

12,000 - 23,999 252,885 221,625,266 876

24,001 - 29,999 108,627 96,728,575 890

$30,000+ 278,027 270,734,076 974

Total Dependent 853,596 768,835,530 901
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

25

Distribution of SEOG to Independent Undergraduates in 2019-20

Family Income Level Recipients Available Aid Average 

Award

0 - $1,999 179,184 $110,489,415 $617

2,000 - 3,999 40,362 25,864,013 641

4,000 - 7,999 83,822 52,787,621 630

8,000 - 11,999 96,086 56,514,093 588

12,000 - 15,999 60,901 32,338,324 531

16,000 - 19,999 53,703 28,895,373 538

20,000+ 218,263 118,538,703 543 

Total Independent 732,321 425,427,542 581

All Undergraduates 1,585,917 1,194,263,072 753

Distribution of SEOG Funds by Type of Institution 

The distribution of SEOG assistance to institutions is controlled by a statutory formula. The 

distribution of SEOG across different types of institutions has remained relatively constant over 

time due to this formula and the base guarantee. The distribution of aid by institution type has 

remained relatively constant over the last 5 years. 

The following table shows the distribution of SEOG to students attending different types of 

institutions in 2019-20. Most funding goes to students attending public institutions.

Distribution of SEOG by Type of Institution in 2019-20

Institution 

Type Recipients Available Aid Average Award

Percent of 

SEOG Aid

Public 4-Year 566,732 $452,372,299 $798 37.9%

Public 2-Year 417,380 205,901,726 493 17.2%

Private 373,356 430,376,267 1,153 36.0%

Proprietary 228,436 105,603,159 462 8.8%

Total 1,585,904 1,194,253,451 753 100.0%
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

26

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2021 2022 2023

Recipients 1,662,000 1,662,000 1,662,000

Aid available to students1 $1,251,693 $1,251,693 $1,251,693 

Average award (in whole dollars) $753 $753 $753

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, 

program goals, objectives, measures, and performance targets and data; and an assessment of 

the progress made toward achieving program results. Achievement of results is based on the 

cumulative effect of the resources provided in previous years and those requested in fiscal year 

2023 and the future as well as the resources and efforts invested by institutions.

Because the programs in the Student Financial Assistance account rely on the same 

performance data, performance measures, strategies, and program improvement activities that 

apply to all the programs, that information is discussed in the Student Aid Overview and is not 

repeated here.

1Aid available includes budget authority, institutional matching funds, transfers from the Federal Work-study program, 

minus administrative costs.
Student Financial Assistance

27

Federal Work-study

(Higher Education Act of 1965, Title IV, Part C)

(dollars in thousands)

FY 2023 Authorization: To be determined1

Budget authority: 

Period of 2022 Estimate 2023 Request Change 

$1,190,000 $1,190,000 +$0

PROGRAM DESCRIPTION

The Federal Work-study (FWS) program ensures access to postsecondary education and 

lifelong learning by offsetting some postsecondary education costs for undergraduate and 

graduate students with financial need with income from part-time employment. Federal funds 

are distributed to qualifying institutions whose financial aid administrators select eligible 

students. Students may be employed by the institution; by a Federal, State, or local public 

agency or private nonprofit organization; or by a private for-profit organization.

The funding for the FWS program is available for 2 fiscal years. Funds become available for 

obligation on October 1 of the fiscal year in which they are appropriated and remain available 

through September 30 of the following fiscal year. Funds requested for fiscal year 2023 would 

be used for the 2023-24 award year, which runs from July 1, 2023 through June 30, 2024.

Institutional participation: Approximately 3,100 institutions participate in the FWS program. 

Funds are distributed to institutions based on a statutory formula. The formula starts with the 

institution's fiscal year 1999 FWS program base guarantee and pro rata share and bases the 

allocation on the aggregate need of the eligible undergraduate students currently in attendance. 

The FWS program is administered by institutional financial aid administrators who have 

substantial flexibility in determining student awards.

If an institution is a proprietary school employing its own students, this employment must be: (1) 

on campus, except that at least 7 percent of the total funds granted must be used to 

compensate students employed in community service activities; (2) related, to the maximum 

extent practicable, to the student’s educational objectives; and (3) related to providing student 

services. The employment tasks of FWS program students, however, must not involve the 

solicitation of potential students to enroll in the school.

Institutional matching: In general, participating institutions or other employers must contribute at 

least 25 percent of a student’s part-time earnings (or 50 percent in the case of private, for-profit 

employers). The Federal share may be up to 90 percent for students employed at a private 

nonprofit organization or a Federal, State, or local public agency that would otherwise be unable 

to afford the costs of employing those students. The 90 percent Federal share is limited to no 

more than 10 percent of the students paid under the FWS program; in addition, the school may 

not own, operate, or control the organization, and the school must select the organization or 

agency on a case-by-case basis.

1The GEPA extension applies through September 30, 2015; reauthorization for FY 2023 is expected through 

appropriation action.
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

28

Student participation: Students qualify for FWS program awards by demonstrating financial 

need under the statutory need analysis formula for the Federal student financial assistance 

programs. Hourly earnings must not be less than the current Federal minimum wage. 

Approximately 5 percent of undergraduates participate in the FWS program.

In addition, if the institution’s allocation is based in part on the financial need demonstrated by 

independent students or students attending the institution less-than-full-time, a reasonable 

portion of the allocation must be made available to such students.

Students must also have a high school diploma (or its equivalent) or have been homeschooled. 

Students who first enrolled in an eligible program prior to July 1, 2012, who did not have a high 

school diploma and were not homeschooled, may receive a Pell Grant by meeting one of the 

ability-to-benefit (ATB) alternatives. These alternatives include: (1) passing an independently 

administered, Department-approved ability-to-benefit test; (2) completing at least 6 credit hours 

or 225 clock hours that are applicable toward a degree or certificate offered by the institution; or 

(3) completing a State process approved by the Secretary of Education.

Students who did not have a high school diploma, were not homeschooled, and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ATB 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA.

A student in default on a loan made under any Title IV HEA loan program, or who owes an 

overpayment on any other previously received Federal student aid, may not receive additional 

funds under the program unless the student repays the debt in full or makes satisfactory 

repayment arrangements with the holder of the debt. 

Institutional administrative provisions: Institutions may use their allocations to support a variety 

of work-study activities, including: 

• Community service. An institution must use at least 7 percent of its Federal allocation for 

payments to students employed in community service activities. Other Work-study jobs that 

qualify as community service activities include community-accessible childcare and 

assistance for disabled students. The Higher Education Opportunity Act (HEOA) expanded 

the definition of community service to include emergency preparedness and response. The 

eligible institution, at its discretion, may count any contribution made by the employer toward 

the non-Federal share of the student’s compensation.

• Tutoring and literacy activities. An institution must include at least one tutoring or family 

literacy project as part of its community service activities. Under this requirement, institutions 

prioritize employing work-study recipients as reading tutors in schools participating in 

programs, funded under the Elementary and Secondary Education Act of 1965, as 

amended, that train educators on science-based reading instruction. In light of pandemicrelated learning loss in K-12 schools, institutions will be encouraged to build partnerships 

with local school districts and strengthen this commitment. 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

29

• Private sector. An institution may use up to 25 percent of its work-study allocation to match 

earnings of students working for private for-profit organizations. Students must, to the 

maximum extent practicable, be placed in jobs that are academically relevant to their course 

of study. FWS program funds may not be used to pay any employee who would otherwise 

be employed by the private organization.

• Job Location and Development. An institution may use up to 10 percent of its FWS program 

allocation, or a maximum of $50,000, whichever is less, for administrative expenses 

associated with the establishment or expansion of a Job Location and Development (JLD) 

program. This program locates and develops off-campus full- or part-time jobs or community 

service jobs for currently enrolled students. The Federal share of the JLD program costs 

cannot exceed 80 percent. 

• Work Colleges. A “Work College” is an institution that requires all resident students to 

participate in a work-learning program as an integral part of the institution’s educational 

philosophy. These colleges are authorized to receive special awards in addition to their 

regular FWS program allocations to support such programs. Work Colleges must match 

Federal allocations on a dollar-for-dollar basis. In addition, Work Colleges may transfer all 

their regular FWS program allotments for use under the Work Colleges program.

• Administrative costs. Each institution’s administrative cost allowance is based upon its 

expenditures for FWS and Supplemental Educational Opportunity Grants (SEOG). Under a 

statutory formula, an institution may use up to 5 percent of the first $2.75 million of its 

program expenditures during an award year to meet administrative costs associated with 

these programs; plus up to 4 percent of expenditures greater than $2.75 million but less 

than $5.5 million; and up to 3 percent of expenditures greater than $5.5 million.

• Transferability of funds. An institution may transfer up to 25 percent of its allocation from 

FWS to SEOG. Up to 10 percent of an institution’s FWS program funds may, at the 

discretion of the institution, be used for expenditures for the preceding fiscal year. In 

addition, up to 10 percent of an institution’s FWS program funds may, at the discretion of the 

institution, remain available for the next fiscal year.

• Reallocation. If funds become available because of under-utilization by institutions, excess 

funds are reallocated only to other institutions that used at least 5 percent of their FWS 

program allocations to compensate students employed in tutoring in reading and family 

literacy activities in the preceding year. Reallocated funds must be used to support student 

employment in community service activities. Under the Hurricane Education Relief Act of 

2017, excess FWS were first allocated to institutions located in FEMA-declared disaster 

areas, and then to institutions that enrolled a significant number of students that live in the 

FEMA-declared disaster areas.

• Disasters. The HEOA added a provision under which an eligible institution located in an 

area affected by a major disaster, as determined by the Secretary, may make FWS 

payments to disaster-affected students, for the period of time (not to exceed 1 academic 

year) in which the students were prevented from fulfilling their FWS obligations due to the 

disaster. Payment may be made in an amount equal to or less than the amount a student 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

30

would have been paid had the student been able to complete the work obligation necessary 

to receive work-study funds. The Hurricane Education Relief Act of 2017 provided the 

Secretary authority to waive reallocation rules and to extend the deadline by which funds 

were reallocated in the campus-based programs due to Hurricanes Harvey, Irma, and Maria.

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands) 

2018 $1,130,000

2019 1,130,000

2020 1,180,000

2021 1,190,000

2022 Estimate 1,190,000

FY 2023 BUDGET REQUEST

For fiscal year 2023, the Administration requests $1.19 billion for the FWS program, level with a 

fiscal year 2022 annualized CR based on the fiscal year 2021 appropriation. Additionally, the 

Administration intends to work with Congress to ensure access to student financial aid for 

students who are Deferred Action for Childhood Arrivals recipients, commonly known as 

DREAMers.

The fiscal year 2023 request for this program is best understood in the context of the 

Administration’s proposals for the student aid programs as a whole. Accordingly, policy 

proposals are discussed in greater detail in the Student Aid Overview.

Distribution of Work-Study Funds by Student Status and Income Level 

The following tables (structured to provide a common basis of comparison among the programs 

in the Student Financial Assistance account) illustrate the distribution of work-study funds to

dependent students and the distribution to independent students at various income levels for 

2019-20. These tables include the most recent distributional data available, which may not 

correspond directly with the data provided in the Program Output Measures section.
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

31

Distribution of Work-Study to Dependent Undergraduates in 2019-20

Income Level Recipients Available Aid Average 

Award

0 - $5,999 31,240 $60,918,872 $1,950

6,000 - 11,999 18,338 36,600,046 1,996

12,000 - 23,999 60,387 118,772,393 1,967

24,001 - 29,999 29,876 58,679,423 1,964

30,000+ 321,816 560,905,488 1,743

Total Dependent 461,657 835,876,222 1,811

Distribution of Work-Study to Independent Undergraduates and Graduates in 2019-20

Income Level Recipients Available Aid Average 

Award

0 - $1,999 21,741 $49,078,797 $2,257

2,000 - 3,999 5,950 13,128,828 2,207

4,000 - 7,999 10,600 24,764,667 2,336

8,000 - 11,999 9,116 22,203,521 2,436

12,000 - 15,999 6,636 16,692,783 2,515

16,000 - 19,999 4,963 12,305,834 2,480

20,000+ 15,010 36,118,053 2,406 

Total Independent 74,016 174,292,483 2,355

Graduate Students 43,187 116,358,870 2,694

All Students 578,860 1,126,527,575 1,946

Distribution of Work-Study Funds by Type of Institution: 

The work-study program is a campus-based program, and the distribution of funds to institutions 

is controlled by a statutory formula. As a result, the distribution of work-study assistance across 

different types of institutions has remained relatively constant over time. The table below shows 

the distribution of work-study to students attending different types of institutions in 2018-2019.
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

32

Distribution of Work-Study by Type of Institution in 2019-20

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

FWS Aid

Public 4-Year 202,129 $435,740,998 $2,156 38.7%

Public 2-Year 68,459 161,742,018 2,363 14.4%

Private 297,664 497,942,058 1,673 44.2%

Proprietary 10,608 31,102,501 2,932 2.8%

Total 578,860 1,126,527,575 1,946 100.0%

Distribution of Work-Study Funds to Students in Community Service Activities: 

The work-study program has a long tradition of providing opportunities for students to perform 

community service activities. At least 7 percent of an institution's work-study allotment must be 

used to pay students employed in community service jobs, unless the institution obtains a 

waiver from the Department. Nationally, 16 percent of work-study funds are used for jobs in 

community service.

Participating colleges and universities must ensure that at least one eligible project provides 

services to both children and their parents. Allowable activities, such as family literacy 

programs, emphasize preparing parents to read to their own children.

The Department has waived the usual 25 percent institutional contribution, allowing work-study 

funds to pay up to 100 percent of the wages to support students who tutor children in 

mathematics, or reading, or who serve in family literacy programs.

The table below shows the distribution of work-study assistance to students employed in 

community service activities in 2019-20.

Distribution of Work-Study to Students in Community Service Activities 

by Type of Institution in 2019-20

Institution 

Type Recipients Available Aid Average Award

Percent of 

WS Aid

Public 4-Year 36,030 $68,100,419 $1,890 39.3%

Public 2-Year 12,094 29,038,106 2,401 16.8%

Private 43,945 72,172,811 1,642 41.7%

Proprietary 1,400 3,925,865 2,804 2.3%

Total 93,469 173,237,201 1,853 100.0%

NOTE: Percentages may not total to 100 percent due to rounding.
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

33

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2021 2022 2023

Recipients 621,000 621,000 621,000

Aid available to students1 $1,207,681 $1,207,681 $1,207,681

Average award (in whole dollars) $1,946 $1,946 $1,946

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, 

program goals, objectives, measures, and performance targets and data; and an assessment of 

the progress made toward achieving program results. Achievement of results is based on the 

cumulative effect of the resources provided in previous years and those requested in 2023 and 

future years, as well as the resources and efforts invested by those served by this program.

Because the programs in the Student Financial Assistance account rely on the same 

performance data, performance measures, strategies, and program improvement activities that 

apply to all the programs, that information is discussed in the Student Aid Overview and is not 

repeated here.

1Aid available includes budget authority, institutional matching funds, transfers from the SEOG program, minus 

administrative costs.
STUDENT FINANCIAL ASSISTANCE

34

Iraq and Afghanistan Service Grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 10)

(dollars in thousands)

FY 2023 Authorization: Indefinite

Mandatory Budget Authority: 

2022 Estimate 2023 Request Change

$692 $743 +$51

PROGRAM DESCRIPTION

The Iraq and Afghanistan Service Grants (IASG) program provides non-need-based grants to 

students whose parent or guardian was a member of the Armed Forces who died in Iraq or 

Afghanistan as a result of performing military service after September 11, 2001. Students are 

not required to be eligible for a Pell Grant in order to receive a Service Grant; however, the 

student must be 24 years old or younger; or, if older than 24, must have been enrolled in an 

institution of higher education at the time of the parent or guardian’s death.

Service Grants are equal to the maximum Pell Grant for a given award year, which was $6,495

in the 2021-22 award year. However, due to sequestration, IASG award amounts have been 

reduced in prior years and are subject to sequestration in the current year. Award amounts for 

any IASG first disbursed on or after Oct. 1, 2021, and before Oct. 1, 2022, will be reduced by 

5.7 percent, or $370 for a student receiving the maximum award. Service Grants are excluded 

from the total “estimated financial assistance” used to determine a student’s eligibility for other 

Title IV Federal financial aid. In combination with other student aid, however, the Service Grant 

may not result in a student’s awards exceeding their cost of attendance. As with Pell Grant 

eligibility, students are limited to 12 semesters of full-time enrollment.

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands) 

2018 $349

2019 517

2020 513

2021 551

2022 Estimate 692

FY 2023 BUDGET

The Administration’s budget request includes mandatory funding the Iraq and Afghanistan 

Service Grant program in the amount of $743,000, an increase of $51,000. The maximum 

award is tied to the Pell Grant maximum, therefore eligible students would qualify for up to 

$8,176 in the 2023-24 award year. That amount is the proposed $8,670 Pell Grant maximum 

less the reduction due to sequestration.
STUDENT FINANCIAL ASSISTANCE

Iraq and Afghanistan service grants

35

Distribution of Iraq and Afghanistan Service Grant Funds by Type of Institution: 

The data provided in the table below shows the distribution of Iraq and Afghanistan service 

grants to students attending different types of institutions in award year 2020-21.

Distribution of IASG by Type of Institution in 2020-21

Institution 

Type Recipients Available Aid Average Award

Percent of 

IASG Aid

Public 4-Year 68 $361,547 $5,317 65%

Public 2-Year 12 51,793 4,316 9

Private 27 131,272 4,862 23

Proprietary 3 14,943 4,981 3

Total 110 559,555 5,218 100

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2021 2022 2023

Recipients (1) (25) (25)

Aid available to students (dollars in 

thousands)2 $692 $692 $924

Maximum grant (whole dollars)3 $6,125 $6,125 $8,176

Average grant (whole dollars) $5,672 $5,672 $7,574 

1Recipients estimated to number fewer than 500.

2Aid available is the amount of funding available for new IASG awards to students in any single academic year. This 

amount differs from budget authority because 1 fiscal year spans across 2 academic years. For instance, total aid 

available in FY 2022 is comprised of portions of both academic year 2021-2022 (ending June 30) and 2022-23

(beginning July 1). 

3Maximum grant amounts for 2021, 2022, and 2023 reflect impact of sequestration.
STUDENT FINANCIAL ASSISTANCE

36

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, 

program goals, objectives, measures, and performance targets and data; and an assessment of 

the progress made toward achieving program results. Achievement of results is based on the 

cumulative effect of the resources provided in previous years and those requested in 2023 and 

future years, as well as the resources and efforts invested by those served by this program.

Because the programs in the Student Financial Assistance account rely on the same 

performance data, when available, the Iraq and Afghanistan Service Grants performance 

measures, strategies, and program improvement activities will be discussed in the Student Aid 

Overview and not repeated here.
STUDENT FINANCIAL ASSISTANCE

37

Account Summary Table

DEPARTMENT OF EDUCATION FISCAL YEAR 2023 PRESIDENT'S BUDGET

(in thousands of dollars)

Cat

Code

2021

Appropriation

2022

Estimate

2023

Request

2023 Request Compared to

2022 Estimate

Amount Percent

Student Financial Assistance

1. Federal Pell grants (HEA IV-A-1):

(a) Discretionary Pell grants D 22,475,352 22,475,352 24,275,352 1,800,000 8.01%

(b) Mandatory Pell grants M 5,167,582 5,096,000 11,960,000 6,864,000 134.69%

(c) Mandatory Funding for Discretionary Program Costs M 1,142,000 1,142,000 1,029,000 (113,000) -9.89%

Subtotal, Federal Pell grants 28,784,934 28,713,352 37,264,352 8,551,000 29.78%

Discretionary D 22,475,352 22,475,352 24,275,352 1,800,000 8.01%

Mandatory M 6,309,582 6,238,000 12,989,000 6,751,000 108.22%

2. Campus-based programs:

(a) Federal supplemental educational opportunity grants (HEA IV-A-3) D 880,000 880,000 880,000 0 0.00%

(b) Federal work-study (HEA IV-C) D 1,190,000 1,190,000 1,190,000 0 0.00%

Subtotal, Campus-based programs 2,070,000 2,070,000 2,070,000 0 0.00%

3. Iraq and Afghanistan service grants (P.L. 111-39) M 589 692 743 51 7.37%

Total 30,855,523 30,784,044 39,335,095 8,551,051 27.78%

Discretionary D 24,545,352 24,545,352 26,345,352 1,800,000 7.33%

Mandatory M 6,310,171 6,238,692 12,989,743 6,751,051 108.21%

NOTES:

1) D = discretionary program; M = mandatory programs

2) Pursuant to the Budget Control Act of 2011 (P.L. 112-25), for most mandatory programs, with the exception of Pell Grants, Credit Liquidating, and Credit Reestimates the levels

shown in the 2021 Appropriation column reflect the 5.7 percent reduction that went into effect on October 1, 2020; the levels shown in the 2022 Estimate column reflect the 5.7

percent reduction that went into effect on October 1, 2021.

3) Detail may not add to totals due to rounding.

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