Department of Education

STUDENT FINANCIAL ASSISTANCE

Fiscal Year 2025 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 2024 Appropriations Reports ................................................................... 7

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

Activities:

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

Federal Supplemental Educational Opportunity Grants .........................................................23

Federal Work-study ................................................................................................................28

Iraq and Afghanistan Service Grants......................................................................................35

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, 

$26,716,352,000, which shall remain available through September 30, 2026:1

The maximum Pell Grant for which a student shall be eligible during award year 2025-2026 

shall be $6,4352. 

GENERAL PROVISIONS

 (CANCELLATION) 

SEC. 308. 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 2025, $15,000,000 are 

hereby permanently cancelled3.

NOTES 

A full-year 2024 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, 2024 and Other Extensions 

Act (Division A of Public Law 118-15, as amended). The amounts included for 2024 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,

$26,716,352,000 which shall remain 

available through September 30, 2026. 

This language sets the availability of funds 

provided under the account through the end 

of fiscal year 2026. 

2The maximum Pell Grant for which a 

student shall be eligible during award year 

2025-2026 shall be $6,435.

This language sets the maximum Pell Grant 

award for award year 2025-26. Including the 

Budget’s proposed increase to mandatory 

funding provided in the Higher Education Act

(HEA), the Pell Grant maximum award in 

award year 2025-26 would be $8,145. 

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 2025, 

$15,000,000 are hereby permanently

cancelled.

The 2025 request includes a cancellation of 

$15,000,000 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 2023 2024 2025 

Discretionary:

Discretionary Appropriation $24,615,352 $24,615,352 $26,716,352

Mandatory:

Mandatory Appropriation 6,246,384 6,724,530 9,898,030

Total, discretionary and 

mandatory appropriation 30,861,736 31,339,882 36,614,382
STUDENT FINANCIAL ASSISTANCE

4 

Summary of Changes

(dollars in thousands) 

2024 $31,339,882

2025 36,614,382

Net change +5,274,500

Increases: 2024 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.

$5,629,000 +$3,114,000

Increase in the requested discretionary Pell Grant 

appropriation to fund a $100 increase to the discretionary 

maximum award. 

22,475,352 +2,101,000

Increase in definite mandatory funding for use in the Pell 

Grant program due to amount provided in the Higher 

Education Act for FY 2024.

1,095,000 +75,000

Subtotal, increases +5,290,000

Decreases: 2024 base

Change 

from base

Program: 

Decrease in definite mandatory funding in the HEA to offset 

the mandatory costs associated with Pell Grant policy 

proposals.

1,095,000 -15,000

Decrease in Iraq and Afghanistan Service Grants funding due 

to consolidation of the program into the Pell Grant program. 530 -500

Subtotal, decreases -15,500

Net change +5,274,500
STUDENT FINANCIAL ASSISTANCE

5 

Authorizing Legislation

(dollars in thousands)

Activity

2024

Authorized F

o

o

t

n

o

t

e

2024

 Annualized CR

2025

Authorized

2025

Request

Footnote

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

Career and Technical: Federal Pell grants (discretionary) 00F

1 $22,475,352 To be determined $24,576,352

Career and Technical: Federal Pell grants (mandatory) Indefinite 6,724,000 Indefinite 9,898,000

Federal supplemental educational opportunity grants 

(HEA-IV-A-3) 01F

2 910,000 To be determined 910,000

Federal Work-study (HEA-IV-C) 02F

3 1,230,000 To be determined 1,230,000

Iraq and Afghanistan Service Grants (HEA-IV-A-10) Indefinite 530 0 30

Total discretionary appropriation 24,615,352 26,716,352

Portion of the discretionary request subject to 

reauthorization 0 26,716,352

Total mandatory appropriation 6,724,530 9,898,030

Total appropriation 31,339,882 36,614,382

1 The GEPA extension expired September 30, 2018; reauthorization for FY 2025 is expected through appropriations action. 2 The GEPA extension expired September 30, 2015; reauthorization for FY 2025 is expected through appropriations action. 3 The GEPA extension expired September 30, 2015; reauthorization for FY 2025 is expected through appropriations action.
STUDENT FINANCIAL ASSISTANCE

6 

Appropriations History

(dollars in thousands)

(Year

Budget 

Estimate 

to Congress

footnote House 

Allowance

footnote Senate 

Allowance footnote

Appropriationfootnote

20163F

1 $24,198,210 $23,828,210 $24,129,352 $24,198,210

20174F

2 24,198,210 22,888,210 24,198,210 24,198,210

20185F

3 22,932,626 24,198,210 24,198,210 24,033,880

20196F

4 22,675,352 24,445,352 24,445,352 24,445,352

20207F

5 22,975,352 24,937,352 24,445,352 24,520,352

20218F

6 22,975,352 24,565,352 24,520,352 24,545,352

20229F

7 27,545,352 27,187,352 26,413,460 24,580,352

202310F

8 26,345,352 24,693,234 24,625,352 24,615,352

202411F

9 26,415,352 22,475,352 24,595,352 24,615,352

2025 26,716,352

1 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. 2 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.

3 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). 4 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). 5 The Senate allowance reflects the Chairman’s mark; the Appropriation reflects the Further Consolidated 

Appropriation Act, 2020 (P.L. 116-94). 6 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). 7 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 Consolidated Appropriations Act, 2022 (P.L. 117-

103). 

8 The House allowance reflects the regular annual FY 2023 appropriation, which was introduced on the floor; the 

Senate allowance reflects the Chairman’s mark; and the Appropriation reflects the Consolidated Appropriations Act, 

2023 (P.L. 117-328).

9 The House allowance reflects Subcommittee action and the Senate allowance reflects Committee action on the 

regular annual 2024 appropriations bill; the Appropriation reflects the annualized continuing resolution level.
STUDENT FINANCIAL ASSISTANCE

7 

Significant Items in FY 2024 Appropriations Reports

Pell Grant Restoration and Prison Education Program

Senate: Given that regulations for the new Prison Education Program are expected to be 

finalized during fiscal year 2024, the Committee directs the Department to 

continue the Second Chance Pell Pilot program as the Department finalizes 

implementation of the full Pell Grant reinstatement. The Committee encourages 

the Department to use the expertise and best practices from the Pilot to develop 

guidance and technical assistance for the new Prison Education Program. The 

Committee further directs the Department to work with Second Chance Pell Pilot 

sites as they transition to the requirements under the new Prison Education 

Program to ensure that incarcerated students do not experience a gap in their 

educational programming. In addition, the Committee strongly encourages the 

Department to notify institutions of higher education (particularly those that 

operate Second Chance Pell Pilot sites), the Bureau of Prisons, State 

departments of corrections, county and local jail administrators, and institutional 

accrediting agencies about the new Prison Education Program. Further, the 

Committee expects the Department will provide technical assistance and 

guidance to Second Chance Pell sites to ensure that they have enough time and 

information to prepare and apply for Prison Education Program approval.

Response: In an effort not to interrupt the postsecondary program of confined or 

incarcerated students receiving Pell Grants for programs under the experiment, 

the Department has extended the Second Chance Pell experiment to provide 

participating schools with sufficient time (up to three award years) to transition 

programs offered under the experiment to comply with the Prison Education 

Program (PEP) requirements. During this time, the Department will provide 

training, guidance and work with our Technical Assistance provider Vera, to 

assist schools with transitioning their programs to become eligible PEPs. 

Schools participating in the experiment will be required to meet specific 

milestones each year so they will be ready to submit their PEPs to the 

Department for approval prior to July 1, 2026. The Department will require annual 

reporting during this time, monitor compliance with progress to transition to PEP, 

and address challenges that schools encounter during the transition to PEP.
STUDENT FINANCIAL ASSISTANCE

8 

Summary of Request

The Administration’s fiscal year 2025 budget request will provide $135 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 $41.8 billion in aid12F

1 and 9.4 million 

student aid awards. 

The fiscal year 2025 funding proposed for the Student Financial Assistance (SFA) account is 

$36.6 billion, approximately $5.3 billion more than the fiscal year 2024 annualized CR based on 

the 2023 appropriation. This includes a discretionary request of $26.7 billion: $24.6 billion for 

Pell Grants, $1.2 billion for Federal Work-study (FWS), and $910 million for Supplementary 

Educational Opportunity Grants (SEOG). $9.9 billion in mandatory funds are requested in fiscal 

year 2025 for the Pell Grant program.

The Administration’s fiscal year 2025 budget would set a maximum award of $8,145 for award 

year 2025-26, an increase of $750 over the 2024-2025 award year. This includes a $100 

increase in the maximum award in discretionary funding and a $650 increase to the mandatory 

add-on. The Administration continues to prioritize doubling the maximum award by 2029 to 

ensure college is accessible and affordable and provides additional mandatory funding to do so.

The Administration also intends to work with Congress to ensure access to student financial aid 

for students who are Dreamers. 

Fiscal year 2025 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.

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

costs.
STUDENT FINANCIAL ASSISTANCE

9 

Federal Pell Grants

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

(dollars in thousands)

FY 2025 Authorization: To be determined13F

1

Budget authority:14F

2 

Period of fund availability: 

2024 Annualized CR 2025 Request Change

Program funds: 

Discretionary appropriation $22,475,352 $24,576,352 +$2,101,000

Mandatory appropriation 5,629,000 8,743,000 +3,114,000

Mandatory appropriation for 

discretionary program costs15F

3 1,095,000 1,155,000 +60,000

Subtotal, current year 

funding 29,199,352 34,474,352 +5,275,000

Pell Grant program costs 35,498,000 39,320,000 +3,822,000

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 based on the student’s “Student Aid Index” 

(SAI), which includes consideration of income and household size, 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 

1The GEPA extension expired September 30, 2018; reauthorization for FY 2025 is expected through appropriations 

action.

2Table reflects discretionary budget appropriations and mandatory budget authority in support of program costs for 

each fiscal year.

3The Higher Education Act (HEA) provides $1,170,000 thousand in mandatory funding to be used for discretionary 

program costs in FY 2024.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

10

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

fiscal year 2025 would be used for grants in the 2025-2026 award year, which runs from July 1, 

2025, through June 30, 2026. 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 2024, over 

7.0 million students are expected to receive Pell Grant awards of up to $7,395. 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 2010-2011 through 2012-2013, and by

the Consumer Price Index (CPI) from 2013 to 2017. Beginning with the 2018-2019 award year, 

the add-on award is equal to the award year 2017-2018 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.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

11

Need analysis formula and Pell Grant Eligibility: Starting with the 2024-2025 award year, the 

need analysis formula for the Title IV need-based student aid programs, stipulated in the HEA, 

determines a student’s SAI. 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), and the family’s household size. The SAI 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. Aside from having an SAI of 

less than or equal to zero, maximum Pell Grant eligibility will also 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. Additionally, 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:

• 400 percent for unmarried independents with dependents, 

• 350 percent for married independents with dependents, 

• 325 percent for unmarried parents of dependents, and

• 275 percent for all others. 

Institutional participation: Approximately 4,800 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 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 

40 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 regular 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 regular 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.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

12

Students who did not have a regular 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.

Beginning with the 2024-2025 award year, eligibility for non-need-based grants to students 

whose parent or guardian was a member of the Armed Forces and died in Iraq or Afghanistan 

as a result of performing military service after September 11, 2001, which were previously given 

through the Iraq and Afghanistan Service Grants (IASG) program, will be folded into the Pell 

Grant program. This allows qualifying students to receive full maximum Pell Grants that are not 

subject to sequestration, as IASG has been. 

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 

2024-2025, the 2024 annualized CR supports an award of $6,335. With the mandatory add-on 

award established by the HCERA, the maximum award will be $7,395. The minimum Pell award 

for award year 2024-2025 is $750. 

For students not eligible for a maximum award using the FPL thresholds described above, 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 SAI; or

• the student’s cost of attendance, minus the SAI.

Additionally, students who are not eligible using the maximum award thresholds or the SAI 

calculation may still be eligible for a minimum award using an additional set of FPL thresholds. 

Furthermore, 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. 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

13

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 SAI 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 

2024-25, these payments will total $35 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) 

2020 $29,451,772

2021 29,001,826

2022 27,571,272

2023 28,721,072

2024 Annualized CR 29,199,352

FY 2025 BUDGET REQUEST

The Administration’s budget request for fiscal year 2025 includes $24.6 billion in discretionary 

funding for the Pell Grant program, $2.1 billion more than the fiscal year 2024 annualized CR, 

averting a shortfall in fiscal year 2025. This discretionary request, plus $9.9 billion in mandatory 

funding, provides a total fiscal year 2025 Pell funding level of $34.5 billion. 

The Administration has requested increases to the maximum discretionary award each year 

since fiscal year 2021 and consistently provided additional budget authority to support these 

requests. In order to ensure the long-term financial sustainability of the Pell Grant program, it is 

imperative that Congress provide additional discretionary budget authority when increasing the 

discretionary maximum award. 

Pell Grants have been the foundation of low- and moderate-income students’ financial aid for 

decades; however, the purchasing power has diminished as college costs have risen. The

Administration’s fiscal year 2025 budget would set a maximum award of $8,145 for award year 

2025-26, an increase of $750 more than the 2024-2025 award year. This includes a $100 

increase in the maximum award in discretionary funding and a $650 increase to the mandatory 

add-on. Students attending public and non-profit institutions will be eligible to receive the 

increased mandatory add-on. The maximum award for students at proprietary institutions will be 

$7,495.

Students at proprietary institutions will not be eligible for the increase to the mandatory add-on 

due to the historically worse outcomes at these institutions. 

The Administration continues to prioritize doubling the maximum award by 2029 to ensure 

college is accessible and affordable and provides additional mandatory funding to do so. The 

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

students who are Dreamers. 

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. 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

15

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 SAI and 

determine Pell Grant eligibility. Applicants are estimated at 15.2 million for award year 2025-

2026, an increase of over 300,000 compared to award year 2024-2025. Many factors affect 

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

labor market demands. For example, the COVID-19 pandemic was a factor as many students 

had foregone pursuing a postsecondary education in recent years. 

Pell Grant recipients are estimated at nearly 7.2 million in award year 2025-2026, an increase of 

120,000 over award year 2024-2025, of which an estimated 50,000 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.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

16

Federal Pell Grants Applicant Trends16F

1

Award Year Valid Applicants17F

2 Applicant Growth: 

Number

Applicant Growth: 

Percent Change

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 14,655,664 -336,122 -2.24%

2021-22 14,295,701 -359,963 -2.46%

2022-23 13,970,946 -324,755 -2.27%

2023-24 14,565,653 594,707 4.26%

2024-25 14,885,130 319,477 2.19%

2025-26 15,227,704 342,574 2.30%

1Applicant data through award year (AY) 2022-2023 are considered final and are taken from internal operational 

reports. Applicant data for award years 2023-2024 through 2025-2026 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. Eligibility will be calculated on SAI starting in 2024-2025.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

17

Pell Grant Program Historical Data

Applicants18F

1 and Recipients (1973-74 to 2025-26)19F2

Number of Recipients: 

Under current estimates, the funds requested for fiscal year 2025 would support Pell Grant 

awards to nearly 7.2 million recipients. 

1 Applicants reflect those applying for all Federal student financial assistance, including those receiving only nonneed-based student loans.

2 Award years 2023-2024 through 2025-2026 are estimates.

0

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

18,000,000

Applicants Recipients
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

18

Aid Available: 

Under current estimates, the Administration’s fiscal year 2025 proposal would provide $39.3 

billion in Pell Grants to students.

Pell Grant Program Historical Data

Aid Available (1973-74 to 2025-26)20F

1

$ in Billions

Maximum Award: 

The Administration proposes to increase the base discretionary maximum award to $6,435 for 

award year 2025-2026 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 $8,145 in award year 2025-2026. 

1 Award years 2023-2024 through 2025-2026 are estimates.

$0

$6

$12

$18

$24

$30

$36

$42

 Aid Available
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

19

Pell Maximum Award, Aid Available, and Recipients

Award 

Year

Maximum 

Award

Aid Available 

(dollars in millions) Recipients

2020-21 $6,345 $26,460 6,219,487 

2021-22 6,495 25,857 6,077,416 

2022-23 6,895 27,222 6,031,476 

2023-24 7,395 31,264 6,471,000 

2024-25 7,395 35,462 7,033,000 

2025-26 8,145 39,284 7,153,000 

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

program costs for fiscal years 2016 to 2025. Fiscal year 2025 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

2016 $5,825 $ 22,475,352 $4,840,361 0 $27,315,713 $26,917,000

2017 5,920 22,475,352 5,680,400 $1,320,000 29,475,752 28,702,000

2018 6,095 22,475,352 5,997,339 1,334,000 29,806,691 28,436,000

2019 6,195 22,475,352 5,388,040 1,370,000 29,233,392 28,451,000

2020 6,345 22,475,352 5,571,420 1,405,000 29,451,772 26,491,000

2021 6,495 22,475,352 5,384,474 1,142,000 29,001,826 25,887,000

2022 6,895 22,475,352 4,010,920 1,085,000 27,571,272 27,252,000

2023 7,395 22,475,352 5,150,720 1,095,000 28,721,072 31,296,00021F

1

2024 7,395 22,475,352 5,629,000 1,095,000 29,199,352 35,498,00022

2025 8,145 24,576,352 8,743,000 1,155,000 34,474,352 39,320,00022

1Estimate
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

20

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 2022-2023, over 61 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 part-time enrollment and 

cost of attendance that can reduce the award received.

Distribution of Pell Grants to Dependent Undergraduates in 2022-23 

Income Level Recipients Available Aid Average 

Award

0 - $6,000 380,262 $2,190,876,872 $5,761 

6,001 - 9,000 75,818 446,713,181 5,892

9,001 - 20,000 503,200 2,990,928,536 5,944

20,001 - 30,000 555,863 3,269,849,007 5,882

30,001+ 1,612,313 6,741,202,913 4,181

Total Dependent 3,127,456 15,639,570,509 5,001

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 2022-23 

Income Level Recipients Available Aid Average 

Award

0 - $1,000 521,339 $2,331,684,305 $4,472 

1,001 - 3,000 109,996 508,507,973 4,623

3,001 - 6,000 156,791 727,374,321 4,639

6,001 - 9,000 163,482 749,488,073 4,585

9,001 - 15,000 392,741 1,727,793,902 4,399

15,001 - 20,000 328,822 1,216,908,930 3,701

20,001 - 30,000 514,663 1,752,329,955 3,405

30,001+ 715,710 2,568,187,032 3,588

Total Independent 2,903,544 11,582,274,491 3,989

All Undergraduates 6,031,000 27,221,845,000 4,514
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

21

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 2022-2023, approximately 46 percent of the total aid available for Pell Grants 

went to students attending Public 4-Year schools, and approximately 22 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 2022-23 award year, that 

figure was 16 percent.

Distribution of Pell Grants by Type of Institution in 2022-23 

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

Pell Aid

Public 4-Year 2,629,218 $12,625,544,681 $4,802 46.4%

Public 2-Year 1,488,252 6,009,748,902 4,038 22.1

Private 1,015,115 4,310,610,769 4,246 15.8

Proprietary 898,415 4,275,940,648 4,759 15.7

Total 6,031,000 27,221,845,000 4,514 100.0

PROGRAM OUTPUT MEASURES 

(dollars in thousands)

Output Measures 2023 2024 2025

Recipients 6,471,000 7,033,000 7,153,000

Aid available to students22F

1 $31,263,645 $35,462,835 $39,284,235

Maximum grant (in whole dollars) $7,395 $7,395 $8,145

Minimum grant (in whole dollars)23F

2 $750 $750 $815

Average grant (in whole dollars) $4,831 $5,042 $5,492

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

22

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 

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

fiscal year 2024 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

23

Federal Supplemental Educational Opportunity Grants

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

(dollars in thousands)

FY 2025 Authorization: To be determined24F

1

Budget authority: 

2024 Annualized CR 2025 Request Change

$910,000 $910,000 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 

2025 will be used for the 2025-2026 award year, which runs from July 1, 2025 through June 30, 

2026. 

Institutional participation: Roughly 3,400 postsecondary institutions receive funds under the 

SEOG program, compared to more than 4,800 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). Beginning with the 2024-2025 award 

year, EFCs will be replaced by the Student Aid Index (SAI). 

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 

1The GEPA extension expired September 30, 2015; reauthorization for FY 2025 is expected through appropriations 

action.
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

24

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

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 regular 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 regular high school diploma and were not homeschooled, may receive an SEOG 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 regular 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

25

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands) 

2020 $865,000

2021 880,000

2022 895,000

2023 910,000

2024 Annualized CR 910,000

FY 2025 BUDGET REQUEST

The Administration’s fiscal year 2025 budget request proposes to maintain the SEOG program 

funding at the same level as the fiscal year 2024 annualized CR level of $910.0 million.

Additionally, the Administration intends to work with Congress to ensure access to student 

financial aid for students who are 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 2021-2022. 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 2021-22, 64 percent of dependent SEOG recipients had family income levels under $30,000, 

and 66 percent of independent SEOG recipients had family income levels under $20,000.

Distribution of SEOG to Dependent Undergraduates in 2021-22 

Family Income Level Recipients Available Aid Average 

Award

0 - $5,999 144,333 $128,651,628 $891 

6,000 - 11,999 78,914 71,547,373 907 

12,000 - 23,999 268,726 246,759,275 918 

24,001 - 29,999 129,818 122,342,649 942 

$30,000+ 346,217 352,675,647 1,019 

Total Dependent 968,008 921,976,572 952 
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

26

Distribution of SEOG to Independent Undergraduates in 2021-22 

Family Income Level Recipients Available Aid Average 

Award

0 - $1,999 191,629 $125,333,885 $654

2,000 - 3,999 42,281 29,305,147 693

4,000 - 7,999 86,456 57,892,045 670

8,000 - 11,999 100,945 64,025,809 634

12,000 - 15,999 68,875 40,489,549 588

16,000 - 19,999 60,412 34,782,272 576

20,000+ 279,937 165,420,812 591

Total Independent 830,535 517,249,519 623

All Undergraduates 1,798,543 1,439,226,091 800

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 2021-2022. More than 57 percent of funding goes to students attending public 

institutions.

Distribution of SEOG by Type of Institution in 2021-22 

Institution 

Type Recipients Available Aid Average Award

Percent of 

SEOG Aid

Public 4-Year 659,735 $547,142,350 $829 38.6%

Public 2-Year 502,007 264,720,852 527 18.7%

Private 412,346 514,343,785 1,247 36.3%

Proprietary 232,925 90,873,872 390 6.4%

Total 1,807,013 1,417,080,859 784 100.0%
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

27

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2023 2024 2025

Recipients 1,615,000 1,615,000 1,615,000

Aid available to students25F

1 $1,293,785 $1,293,785 $1,293,785

Average award (in whole dollars) $801 $801 $801

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 

2025 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

28

Federal Work-study

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

(dollars in thousands)

FY 2025 Authorization: To be determined26F

1

Budget authority: 

Period of 2024 Annualized CR 2025 Request Change 

$1,230,000 $1,230,000 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 Department 

is interested in expanding career and academically connected Federal Work-study 

opportunities, as well as community service Federal Work-study opportunities, including 

mentoring, tutoring, and coaching roles in kindergarten through grade 12 (K-12) schools.

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 2025 would 

be used for the 2025-2026 award year, which runs from July 1, 2025 through June 30, 2026. 

Institutional participation: Approximately 2,900 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, forprofit employers). The Federal share may be up to 90 percent for students employed at a 

1The GEPA extension applies through September 30, 2015; reauthorization for FY 2025 is expected through 

appropriation action.
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

29

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.

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 regular 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 regular high school diploma and were not homeschooled, may receive an FWS 

award 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 regular 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. The Department encourages 

institutions to consider pathways to allocate more resources to support community service 

activities, including mentoring, coaching, tutoring and literacy activities in K-12 schools. 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

30

• 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 are encouraged to build partnerships with 

local school districts and strengthen this commitment and support high-dosage tutoring that 

is aligned with research on effective, high-impact tutoring programs. 

• 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. The Department encourages institutions to explore 

private sector partnerships that provide academically relevant and work-based learning 

opportunities that will facilitate a greater likelihood of connecting academic studies with 

future career prospects.

• 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 parttime 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 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

31

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 

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) 

2020 $1,180,000

2021 1,190,000

2022 1,210,000

2023 1,230,000

2024 Annualized CR 1,230,000

FY 2025 BUDGET REQUEST

For fiscal year 2025, the Administration requests $1.23 billion for the FWS program, level with

the fiscal year 2024 annualized CR. Additionally, the Administration intends to work with 

Congress to ensure access to student financial aid for students who are Dreamers. The

Department is also interested in expanding career and academically connected Federal Workstudy opportunities to improve alignment with jobs directly related to course of study and career 

aspirations. This request reflects the need to prepare American workers for the historic creation 

of in-demand and high-quality jobs stemming from the Invest in America agenda and of critical 

national need, specifically in critical sectors that include infrastructure, clean energy, advanced 

manufacturing, semiconductors, and biotechnology, and education among others.

The fiscal year 2025 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 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

32

2021-2022. These tables include the most recent distributional data available, which may not 

correspond directly with the data provided in the Program Output Measures section. Work-study 

recipients and aid have decreased due to the pandemic. These measures have begun to 

rebound, though they are not yet at pre-pandemic levels. 

Distribution of Work-Study to Dependent Undergraduates in 2021-22 

Income Level Recipients Available Aid Average 

Award

0 - $5,999 20,366 $39,775,435 $1,953 

6,000 - 11,999 11,793 23,472,600 1,990 

12,000 - 23,999 39,624 78,332,817 1,977 

24,001 - 29,999 21,156 41,610,023 1,967 

30,000+ 248,942 451,223,350 1,813 

Total Dependent 341,881 634,414,225 1,856 

Distribution of Work-Study to Independent Undergraduates and Graduates in 2021-22

Income Level Recipients Available Aid Average 

Award

0 - $1,999 13,074 $27,294,687 $2,088 

2,000 - 3,999 3,889 8,123,239 2,089 

4,000 - 7,999 6,874 14,789,828 2,152 

8,000 - 11,999 5,929 13,881,406 2,341 

12,000 - 15,999 4,505 10,135,076 2,250 

16,000 - 19,999 3,239 7,686,249 2,373 

20,000+ 11,688 26,606,796 2,276 

Total Independent 49,198 108,517,281 2,206 

Graduate Students 41,350 113,898,455 2,754 

All Students 432,429 856,829,961 1,981 

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 2021-2022. 
STUDENT FINANCIAL ASSISTANCE

Federal Work-study

33

Distribution of Work-Study by Type of Institution in 2021-22 

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

FWS Aid

Public 4-Year 154,335 $331,912,866 $2,151 39.0%

Public 2-Year 38,395 91,530,585 2,384 10.7%

Private 232,337 413,553,676 1,780 48.6%

Proprietary 7,362 14,586,050 1,981 1.7%

Total 432,429 851,583,177 1,969 100.0%

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 2020-2021. 

Distribution of Work-Study to Students in Community Service Activities 

by Type of Institution in 2020-21 

Institution 

Type Recipients Available Aid Average Award

Percent of 

WS Aid27F

1

Public 4-Year 20,012 $41,405,301 $2,069 41.5%

Public 2-Year 4,273 9,680,392 2,265 9.7% 

Private 26,223 47,273,305 1,803 47.4%

Proprietary 498 1,308,456 2,627 1.3% 

Total 51,006 99,667,454 1,954 100.0%

 

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

Federal Work-study

34

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2023 2024 2025

Recipients 630,000 630,000 630,000

Aid available to students28F

1 $1,247,893 $1,247,893 $1,247,893

Average award (in whole dollars) $1,980 $1,980 $1,980

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 2025 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

35

Iraq and Afghanistan Service Grants

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

(dollars in thousands)

FY 2025 Authorization: Indefinite

Mandatory Budget Authority: 

2024 Appropriation 2025 Request Change

$530 $30 -$500

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 $7,395 

in the 2023-2024 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, 2023, and before Oct. 1, 2024, will be reduced by 

5.7 percent, or $422 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) 

2020 $513

2021 551

2022 576

2023 578

2024 530

FY 2025 BUDGET REQUEST

The Administration’s budget request includes $30,000 in mandatory funding for Iraq and 

Afghanistan service grants, a decrease of $500,000. These funds are for fiscal year 2025 

activity within the 2023-2024 award year. The program is set to be rolled into the Pell Grant 

program starting with the 2024-2025 award year. Qualifying students will be eligible to receive 

full maximum Pell awards, which are not subject to sequestration.
STUDENT FINANCIAL ASSISTANCE

Iraq and Afghanistan service grants

36

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 2022-2023. 

Distribution of IASG by Type of Institution in 2022-23 

Institution 

Type Recipients Available Aid Average Award

Percent of 

IASG Aid

Public 4-Year 72 $446,735 $6,205 68%

Public 2-Year 10 53,639 5,364 8%

Private 25 146,480 5,859 22%

Proprietary 2 13,003 6,501 2%

Total 109 659,857 6,054 100%

PROGRAM OUTPUT MEASURES

Output Measures 2023 2024 2025

Recipients (

29F

1) 0 0

Aid available to students (dollars in 

thousands)30F

2 $679 0 0 

Maximum grant (whole dollars)31F

3 $6,973 0 0

Average grant (whole dollars) $6,230 0 0

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 2024 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.

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. 

3Maximum grant amounts for 2023 reflects impact of sequestration. 
STUDENT FINANCIAL ASSISTANCE

37

Account Summary Table

Select here for the online version.

DEPARTMENT OF EDUCATION FISCAL YEAR 2025 PRESIDENT'S BUDGET

(in thousands of dollars)

Cat 

Code

2023

Appropriation

2024

Annualized CR

2025 Request

FY 2025 Request 

Compared to FY 2024 

Annualized CR: Amount

FY 2025 Request 

Compared to FY 2024 

Annualized CR: Percent

Student Financial Assistance

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

(a) Discretionary Pell grants D 22,475,352 22,475,352 24,576,352 2,101,000 9.35%

(b) Mandatory Pell grants M 5,150,720 5,629,000 8,743,000 3,114,000 55.32%

(c) Mandatory Funding for Discretionary Program Costs M 1,095,000 1,095,000 1,155,000 60,000 5.48%

Subtotal, Federal Pell grants 28,721,072 29,199,352 34,474,352 5,275,000 18.07%

Discretionary D 22,475,352 22,475,352 24,576,352 2,101,000 9.35%

Mandatory M 6,245,720 6,724,000 9,898,000 3,174,000 47.20%

2. Campus-based programs:

(a) Federal supplemental educational opportunity grants (HEA IV-A-3) D 910,000 910,000 910,000 0 0.00%

(b) Federal work-study (HEA IV-C) D 1,230,000 1,230,000 1,230,000 0 0.00%

Subtotal, Campus-based programs 2,140,000 2,140,000 2,140,000 0 0.00%

3. Iraq and Afghanistan service grants (P.L. 111-39) M 664 530 30 (500) -94.34%

Total 30,861,736 31,339,882 36,614,382 5,274,500 16.83%

Discretionary D 24,615,352 24,615,352 26,716,352 2,101,000 8.54%

Mandatory M 6,246,384 6,724,530 9,898,030 3,173,500 47.19%

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 

2023 and 2024 Appropriation columns reflect the 5.7 percent reduction that went into effect on October 1, 2022 and October 1, 2023, respectively.

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