dwb2023/document-loader-jul2025 huggingface dataset:
Volume	7
The	Federal	Pell	Grant	Program
Introduction
This	volume	of	the	Federal	Student	Aid	Handbook	provides	information	to	assist	schools	in	determining	student	eligibility
for	and	calculating	the	amount	of	Federal	Pell	Grants.
Significant	Changes	for	2025326
Throughout	Volume	7,	all	dates,	award	years,	and	dollar	values	have	been	updated	to	reflect	the	2025326	processing
year.	Also,	where	appropriate,	links	and	publications	associated	with	FSA9s	Partner	Connect	and	Knowledge	Center	have
been	updated.
Note:	Statutory	citations	are	to	the	
Higher	Education	Act	(HEA)	of	1965,	as	amended.
Chapter	1
We	added	a	reminder	that	schools	must	work	with	any	student	who	indicates	on	the	FAFSA	form	that	their	parent	or
guardian	was	killed	in	the	line	of	duty	to	document	and,	if	determined	eligible,	certify	eligibility	for	a	maximum	Pell	Grant
under	the	Special	Rule.
Chapter	2
In	the	<Calculated	Pell=	section,	we	added	set	of	steps	for	determining	the	calculated	Scheduled	Award	to	clarify	when	a
school	should	and	should	not	round	to	the	nearest	$5.	We	updated	the	examples	to	demonstrate	these	steps.
Chapter	3
We	added	a	section	titled	<Less	Than	Half	Time	Pell	Grant	Cost	of	Attendance=	to	demonstrate	this	concept	and	provide
an	example	of	how	a	Pell	Grant	may	be	limited	by	a	less-than-half-time	COA.
Chapter	4
We	added	a	fourth	example	titled	<Less-than-half-time	Enrollment	and	Pell	Grant	COA=	to	the	<Pell	Formula	1=	section,
which	incorporates	the	concept	of	a	less-than-half-time	Pell	Grant	COA	with	a	less-than-half-time	enrollment	intensity
proration.
There	were	no	substantive	changes	in	Chapters	5-8	or	the	Appendix.
Pell	Eligibility	for	Incarcerated	Students
Section	484(t)	of	the	HEA	established	Pell	Grant	eligibility	for	confined	or	incarcerated	students	if	they	are	enrolled	in	an
eligible	Prison	Education	Program	(PEP).	A	confined	or	incarcerated	individual	is	eligible	to	receive	a	Pell	Grant	if	that
individual	enrolls	in	an	eligible	PEP.	For	additional	information	about	PEPs,	see	
Volume	1,	Chapter	1	and	Volume	2,
Chapter	2	of	the	FSA	Handbook.
Institutions	that	participated	in	the	Second	Chance	Pell	(SCP)	experiment	under	the	Experimental	Sites	Initiative	(ESI)
were	invited	to	apply	to	participate	in	a	revised	version	of	the	experiment.	The	revised	SCP	program	allows	institutions
participating	in	the	experiment	as	of	July	1,	2023,	to	continue	offering	their	current	programs	to	confined	or	incarcerated
individuals	for	up	to	three	award	years	while	they	work	through	the	application	and	approval	process	for	the	PEP(s)	they
wish	to	offer	under	the	new	provisions.	See	Electronic	Announcement	GENERAL-23-25	for	additional	information.	The
revised	SCP	experiment	will	end	on	June	30,	2026;	schools	will	not	be	permitted	to	disburse	Pell	Grant	funds	under	the
experiment	beyond	the	2025-26	award	year.
Cost	of	Attendance	for	Incarcerated	Students
The	cost	of	attendance	for	students	who	are	incarcerated	may	include	the	following:	tuition,	fees,	books,	course	materials,
supplies,	equipment,	and	the	cost	of	obtaining	a	license,	certification,	or	a	first	professional	credential.	For	more
information	on	the	cost	of	attendance,	see	
Volume	3,	Chapter	2	of	the	FSA	Handbook.
Confined	or	incarcerated	individuals	may	not	receive	Pell	Grant	funds	for	more	than	their	cost	of	attendance	and	may	not
receive	a	Title	IV	credit	balance.	To	ensure	that	all	allowable	costs	are	included	in	the	cost	of	the	attendance,	schools
must	include	books,	course	materials,	equipment,	and	supplies	as	part	of	institutional	charges	and	either	provide	those
materials	directly	to	the	individual	or	include	the	costs	of	books	and	supplies	in	the	individual9s	tuition	and	fees.	If	a	credit
balance	is	created,	the	school	must	return	the	Pell	Grant	funds	associated	with	the	credit	balance	to	the	Department	and
it	will	be	credited	to	the	student's	remaining	Pell	eligibility.
Maximum	Pell	Grant	Eligibility	for	Dependents	of	Certain	Deceased	Servicemembers	and	Public	Safety	Officers
Students	who	meet	the	eligibility	requirements	for	Pell	Grants	under	the	Special	Rule	in	HEA	Section	401(c)	will	receive	a
maximum	Pell	Grant	award,	regardless	of	their	calculated	SAI.	To	receive	a	Pell	Grant	based	on	eligibility	under	the
Special	Rule,	a	student	must	be:
34	CFR	690.11
HEA	Section	401(d)(3)
Pell	Eligibility	for	Incarcerated	Students
34	CFR	668,	Subpart	P	3	Requirements	for	prison	education	programs
34	CFR	690.62(b)(1)	3	Prohibition	on	issuance	of	credit	balances	for	confined	or	incarcerated	individuals
Dear	Colleague	Letter	GEN-23-05	3	Eligibility	of	Confined	or	Incarcerated	Individuals	to	Receive	Pell	Grants
Prison	Education	Programs	3	FSA	Partners	Knowledge	Center	Resources
Prison	Education	Programs	3	Questions	and	Answers
The	child	of	a	parent	or	guardian	who	died	in	the	line	of	duty	while	either	(a)	serving	on	active	duty	as	a	member	of
the	U.S.	Armed	Forces	on	or	after	September	11,	2001;	or	(b)	actively	serving	as	and	performing	the	duties	of	a
public	safety	officer;	and
Less	than	33	years	old	as	of	the	January	1	prior	to	the	award	year	for	which	the	applicant	is	applying	(e.g.,	for	the
2025326	award	year,	a	student	must	be	less	than	33	years	old	as	of	January	1,	2025,	to	be	eligible).
In	this	situation,	eligible	students	will	have	a	Scheduled	Award	equal	to	a	maximum	Pell	Grant	award,	regardless	of	SAI.
Other	aid	for	these	students	will	be	based	on	their	calculated	SAI.
Public	Safety	Officer	Definition
A	public	safety	officer	generally	includes	the	following:
Law	enforcement	officer
Firefighter
Member	of	a	rescue	squad	or	ambulance	crew
Federal	Emergency	Management	Agency	(FEMA)	employee
Emergency	management	or	civil	defense	agency	employee
Chaplain
Others	defined	in	Section	1204	of	the	Omnibus	Crime	Control	and	Safe	Streets	Act	of	1968	(34	U.S.C.	10284)
Identification	of	Eligibility	and	Acceptable	Documentation
The	U.S.	Department	of	Defense	does	not	provide	confirmation	that	a	service	member	killed	in	the	line	of	duty	meets	the
special	eligibility	criteria.	Further,	no	comprehensive	federal	database	exists	to	effectively	and	efficiently	identify	public
safety	officers	killed	in	the	line	of	duty.	Therefore,	students	will	self-identify	potential	eligibility	on	the	FAFSA	form,	and	the
school	will	be	required	to	confirm	eligibility	by	collecting	supporting	documentation	from	the	student.	Once	you	document
and	certify	Special	Rule	eligibility	for	a	maximum	Pell	Grant	award,	neither	your	school	nor	any	other	school	is	required	to
redetermine	that	student's	eligibility	for	subsequent	award	years	if	the	student	continues	to	meet	all	other	Pell	Grant
eligibility	requirements	and	the	age	requirement	for	the	Special	Rule.
Acceptable	documentation	may	include,	but	is	not	limited	to,	the	following:
A	copy	of	the	servicemember9s	DD	Form	1300	(Report	of	Casualty)	which	documents	death	in	the	line	of	duty.
A	copy	of	the	servicemember9s	DD	Form	214	and	death	certificate,	documenting	that	the	date	and	cause	of	death
occurred	during	and	as	a	result	of	active	duty.
A	copy	of	a	Department	of	Veterans	Affairs	Death	Narrative	Document.
A	determination	letter	acknowledging	eligibility	for	certain	federal	benefits	under	the	Public	Safety	Officers	Benefit
(PSOB)	program	administered	by	the	Department	of	Justice.
A	written	letter	of	attestation	or	determination	made	by	a	state	or	local	government	official	with	supervisory	or	other
relevant	oversight	authority	of	an	individual	who	died	in	the	line	of	duty	while	serving	as	a	public	safety	officer.
Pell	Grants	Under	the	Special	Rule
HEA	Section	401(c)
CFH
Ineligible IASG	or	CFH
Indicator
3	3	Not	eligible	for
IASG/CFH
No	Determination IASG	or	CFH
Indicator
Blank	3	No
Determination
While	you	do	not	need	to	redetermine	a	student9s	eligibility	in	subsequent	award	years,	you	must	recertify	and	report
eligibility	annually	in	FPP.
Chapter	2
Calculating	Pell	Grants
Pell	Grant	Scheduled	Awards	are	based	on	information	provided	on	the	FAFSA	form,	the	presence	of	a	valid	Student	Aid
Index	(SAI)	on	the	student9s	FAFSA	Submission	Summary	or	ISIR,	the	academic	year	structure	(see	Volume	3,	Chapter	1),
and	the	Pell	Grant	cost	of	attendance	(COA)	for	a	full-time	student	for	a	full	academic	year	(see	Volume	3,	Chapter	2).	For
term-based	programs,	awards	for	part-time	students	are	adjusted	based	on	a	student9s	enrollment	intensity.
Scheduled	Award,	Award	Year,	and	Annual	Award
The	Scheduled	Award	is	the	maximum	amount	a	student	can	receive	during	the	award	year	if	the	student	attends	full
time	for	a	full	academic	year.	The	award	year	begins	on	July	1	of	one	year	and	ends	on	June	30	of	the	next	year.	For
example,	the	2025-26	award	year	begins	July	1,	2025,	and	ends	June	30,	2026.	The	student9s	Scheduled	Award	is
established	by	the	school	using	the	student9s	Pell	Grant	COA	and	the	information	received	on	the	student9s	ISIR,	which	will
include	the	student9s	Pell	Grant	eligibility	and	SAI.
The	annual	award	is	the	maximum	amount	a	student	would	receive	during	a	full	academic	year	based	on	enrollment
intensity	and	COA.	Note	that	for	a	full-time	student,	the	annual	award	will	be	the	same	as	the	Scheduled	Award.	A	part-
time	student	who	is	enrolled	in	a	term-based	program	will	have	an	annual	award	that	is	less	than	the	Scheduled	Award.
Published	Maximum	and	Minimum	Pell	Grant	Award	Amounts
The	maximum	Pell	Grant	award	amount	is	determined	by	the	appropriation	Act	applicable	to	that	award	year.	The
Department	will	announce	the	maximum	Pell	Grant	award	amount	for	the	award	year,	as	required,	when	the	amount	is
available.	The	minimum	Pell	Grant	award	amount	will	be	10%	of	the	maximum	Pell	Grant	award	amount	for	the	award
year.	Both	the	maximum	and	minimum	award	amounts	will	be	rounded	to	the	nearest	$5.	You	should	refer	to	the
Knowledge	Center	for	the	most	updated	information.
Pell	Grant	Eligibility	Criteria
A	student	may	qualify	for	a	Pell	Grant	under	one	of	three	sets	of	eligibility	criteria:
Maximum	Pell	Grant	eligibility	(Max	Pell)
Minimum	Pell	Grant	eligibility	(Min	Pell)
Calculated	Pell	Grant	eligibility,	based	on	SAI
If	FPS	has	determined	that	a	student's	ISIR	transaction	is	eligible	for	a	Pell	Grant,	the	<Pell	Grant	Eligibility	Flag=	will	be	set
to	<Y=.	Schools	will	use	additional	information	on	the	ISIR	to	determine	whether	students	qualify	for	Max	Pell,	Min	Pell,	or	a
Calculated	Pell	Grant.	Actual	Pell	Grant	award	amounts	are	unique	to	individual	students	and	are	based	upon	and	limited
by	the	student's	enrollment	intensity,	SAI,	COA,	and	Lifetime	Eligibility	Used	(LEU).	For	more	on	LEU,	see	Chapter	8	of	this
volume.
Maximum	Pell	Grant	Eligibility	Criteria
This	section	describes	eligibility	criteria	to	qualify	for	a	Max	Pell	Grant	and	the	<Max	Pell	Indicator=	value	that	you	will	see
on	the	student9s	ISIR.
Dependent	Student
Note:/Examples	use	fictional	maximum	($7,500)	and	minimum	($750)	Pell	Grant	award	amounts	for
demonstration	purposes	only.	Award	amounts	in	examples	in	this	volume	should	not	be	used	in	packaging	Pell
Grants	for	the	2025-26	award	year.
Max	Pell
Indicator
Eligibility	Criteria
1 The	student9s	parent(s)	is	not	required	to	file	a	 federal	income	tax	return.
2 The	student9s	parent	is	a	single	parent	and	has	an 	AGI	greater	than	zero	and	less	than	or	equal	to	225%	of
the	poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
3 The	student9s	parent	is	not	a	single	parent	and	ha s	an	AGI	greater	than	zero	and	less	than	or	equal	to	175%
of	the	poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
Blank Ineligible	for	Max	Pell
Independent	Student
Max	Pell
Indicator
Eligibility	Criteria
1 The	student	(and	spouse,	if	applicable)	is	not	req uired	to	file	a	federal	income	tax	return.
2 The	student	is	a	single	parent	and	has	an	AGI	grea ter	than	zero	and	less	than	or	equal	to	225%	of	the
poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
3 The	student	is	not	a	single	parent	and	has	an	AGI	 greater	than	zero	and	less	than	or	equal	to	175%	of	the
poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
Blank Ineligible	for	Max	Pell
Poverty	Guidelines
The	Department	of	Health	and	Human	Services	(HHS)	annually	produces	poverty	guidelines	by	state	of	residence.	Use	the
U.S.	Federal	Poverty	Guidelines	Used	to	Determine	Financial	Eligibility	for	Certain	Programs	for	the	prior-prior	tax	year
(e.g.,	for	the	2025326	award	year,	use	the	2023	poverty	guideline)	by	state	of	legal	residence	to	determine	a	student9s
eligibility	for	Max	or	Min	Pell.
State	of	Legal	Residence
Dependent	student	state	of	legal	residence	is	the	reported	state	of	residence	of	their	parent(s),	if	reported.	Otherwise,	use
the	student9s	reported	state	of	residence.	For	independent	students,	use	the	reported	state	of	residence	for	the	applicant.
Maximum	Pell	Grant	Eligibility
HEA	Sec.	401(b)(1)(A)
For	independent	student	applicants	or	parents	of	dependent	student	applicants	who	do	not	have	a	reported	state	of	legal
residence	or	whose	place	of	legal	residence	is	outside	the	U.S.,	use	the	poverty	estimates	for	the	contiguous	48	states.
Required	to	File	a	Federal	Income	Tax	Return
Use	IRS	Publication	501	for	the	applicable	tax	year	to	determine	if	the	independent	applicant	or	dependent	student9s
parent(s)	was	required	to	file	a	federal	tax	return.	If	tax	filing	status	is	known,	use	the	combination	of	reported	marital
status,	tax	filing	status,	and	age	to	determine	if	they	were	required	to	file.
Minimum	Pell	Grant	Eligibility	Criteria
This	section	describes	eligibility	criteria	to	qualify	for	a	Min	Pell	Grant	and	the	<Minimum	Pell	Indicator=	value	that	you	will
see	on	the	student9s	ISIR.
Dependent	Student
Min	Pell
Indicator
Eligibility	Criteria
1 The	student9s	parent	is	a	single	parent	and	has	an 	AGI	less	than	or	equal	to	325%	of	the	poverty	guideline
for	the	applicant9s	family	size	and	state	of	residence.
2 The	student9s	parent	is	not	a	single	parent	and	ha s	an	AGI	less	than	or	equal	to	275%	of	the	poverty
guideline	for	the	applicant9s	family	size	and	state	of	residence.
Blank Ineligible	for	Min	Pell
Independent	Student
Min	Pell
Indicator
Eligibility	Criteria
3 The	student	is	a	single	parent,	and	the	AGI	is	les s	than	or	equal	to	400%	of	the	poverty	line.
4 The	student	is	a	parent	and	is	not	a	single	parent ,	and	the	AGI	is	less	than	or	equal	to	350%	of	the	of	the
poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
5 The	student	is	not	a	parent,	and	the	student9s	(an d	spouse9s	if	applicable)	AGI	is	less	than	or	equal	to	275%
of	the	of	the	poverty	guideline	for	the	applicant9s	family	size	and	state	of	residence.
Blank Ineligible	for	Min	Pell
Minimum	Pell	Grant	Eligibility
HEA	Sec.	401(b)(1)(C)
Calculated	Pell	Grant	(Eligibility	Based	on	SAI	and	COA)
If	the	<Pell	Grant	Eligibility	Flag=	on	the	ISIR	is	set	to	<Y=,	but	the	<Max	Pell	Indicator=	and	<Minimum	Pell	Indictor=	are
blank,	the	student	may	be	eligible	for	a	calculated	Pell	Grant.
Calculated	Pell	Grant	Order	of	Operations
Use	the	following	steps	to	determine	the	amount	of	a	calculated	Pell	Grant:
If	the	student9s	calculated	Pell	Grant	is	greater	than	the	Min	Pell	amount/and/the	student9s	COA,	the	Scheduled	award	will
be	the	same	value	as	the	student9s	COA	(not	rounded).
Step	1: Subtract	the	student9s	calculated	SAI	from	the	award	year9s	published	Max	Pell	amount.
Step	2: Compare	the	amount	from	Step	1	to	the	award	year9s	published	Min	Pell	amount.	If	Max
Pell	minus	SAI	g	Min	Pell,	proceed	to	Step	3.	If	not,	the	student	is	not	eligible	for	a
Calculated	Pell	Grant.
Step	3: Round	the	result	from	Step	1	to	the	nearest	$5.
Step	4: Compare	the	rounded	amount	from	Step	3	to	the	student9s	Pell	Grant	COA.	If	the
rounded	amount	is	less	than	the	student9s	Pell	Grant	COA,	the	student	is	eligible	for	a
Scheduled	Pell	Grant	Award	of	that	resulting	amount.	If	the	rounded	amount	is	greater
than	the	student9s	Pell	Grant	COA,	the	student	is	eligible	for	a	Scheduled	Pell	Grant
Award	equal	to	the	student9s	Pell	Grant	COA.
Volume	7,	Chapter	2,	Example	1:	Eligible	for	Calculated	Pell	Grant
A	student9s	calculated	SAI	is	1,004	and	the	Pell	COA	is	$10,000.	For	demonstration	purposes,	assume	the
published	Max	Pell	for	the	award	year	is	$7,500.	The	published	Min	Pell	for	the	award	year	is	10%	of	the	Max	Pell,
or	$750.	The	school	performs	the	steps	in	the	Calculated	Pell	Grant	process	to	determine	the	student9s	Scheduled
Award.
Step	1:	Max	Pell	($7,500)	-	SAI	(1,004)	=	$6,496
Step	2:	Calculated	Pell	Grant	($6,496)	>	Min	Pell	($750)
Step	3:	Round	Calculated	Pell	Grant	($6,496)	to	the	nearest	$5	=	$6,495
Step	4:	Rounded	Calculated	Pell	Grant	($6,495)	<	Pell	Grant	COA	($10,000)
Since	the	calculated	Scheduled	Award	is	less	than	the	Pell	COA,	the	school	determines	that	the	student	is	eligible
for	a	Scheduled	Award	of	$6,495.
Volume	7,	Chapter	2,	Example	2:	Eligible	for	Calculated	Pell	Grant,	Capped	at	COA
A	student9s	calculated	SAI	is	1,004	and	the	Pell	COA	is	$6,493.	For	demonstration	purposes,	assume	the	published
Max	Pell	for	the	award	year	is	$7,500.	The	published	Min	Pell	for	the	award	year	is	10%	of	the	Max	Pell,	or	$750.
If	the	student9s	calculated	Pell	Grant	is	less	than	the	published	Min	Pell	amount	for	the	award	year,	the	student	is	not
eligible	for	a	calculated	Pell	Grant.	However,	the	student	may	still	meet	eligibility	requirements	for	Min	Pell	based	on	AGI,
family	size,	state	of	residence,	and	poverty	guidelines,	described	previously.
Determining	the	Award	Year	for	Crossover	Pell	Awards
You	must	source	Pell	Grant	funds	from	the	award	year	to	which	the	payment	period	is	assigned.	When	awarding	Pell
Grants	for	a	crossover	payment	period,	you	may	assign	the	payment	period	to	the	award	year	that	best	meets	the	needs
of	your	students	and	maximizes	a	student9s	eligibility	over	the	two	award	years	in	which	the	crossover	payment	period
occurs.	For	general	information	about	payment	periods,	see	Chapter	1	of	Volume	3,	and	for	more	detail	on	crossover
payment	periods,	see	the	section	on	crossover	payment	periods	in	Chapter	5	of	this	volume.
Basic	Pell	Grant	Formulas
Except	for	subscription-based	programs	(see	
Volume	3,	Chapter	1	for	information	on	subscription-based	programs),	if	all
coursework	is	offered	in	credit	hours	and	scheduled	to	be	completed	within	a	specific	time	frame,	the	program	generally
can	be	considered	term-based.	Term-based	programs	can	have	either	standard	terms	or	nonstandard	terms.	Pell	Grants
are	usually	calculated	differently	for	the	two	types	of	terms.	Standard-term	programs	may	be	treated	similarly	to
nonstandard-term	programs	if	the	program	does	not	conform	to	a	traditional	academic	calendar	or	meet	certain	other
The	school	performs	the	steps	in	the	Calculated	Pell	Grant	process	to	determine	the	student9s	Scheduled	Award.
Step	1:	Max	Pell	($7,500)	-	SAI	(1,004)	=	$6,496
Step	2:	Calculated	Pell	Grant	($6,496)	>	Min	Pell	($750)
Step	3:	Round	Calculated	Pell	Grant	($6,496)	to	the	nearest	$5	=	$6,495
Step	4:	Rounded	Calculated	Pell	Grant	($6,495)	>	Pell	Grant	COA	($6,493)
Since	the	calculated	Scheduled	Award	is	greater	than	the	Pell	COA,	the	school	determines	the	student9s
Scheduled	Award	must	be	capped	at	the	COA.	The	student	is	eligible	for	a	Scheduled	Award	of	$6,493.
Volume	7,	Chapter	2,	Example	3:	Ineligible	for	Calculated	Pell	Grant
A	student9s	calculated	SAI	is	6,751	and	the	Pell	COA	is	$9,000.	For	demonstration	purposes,	assume	the	published
Max	Pell	for	the	award	year	is	$7,500.	The	published	Min	Pell	for	the	award	year	is	10%	of	the	Max	Pell,	or	$750.
The	school	performs	the	steps	in	the	Calculated	Pell	Grant	process	to	determine	the	student9s	Scheduled	Award.
Step	1:	Max	Pell	($7,500)	-	SAI	(6,751)	=	$749
Step	2:	Calculated	Pell	Grant	($749)	<	Min	Pell	($750)
Since	this	student9s	Calculated	Pell	Grant	is	less	than	the	published	Min	Pell	for	the	award	year,	the	student	is	not
eligible	for	a	Calculated	Pell	Grant.	However,	the	student	may	still	meet	eligibility	requirements	for	a	Min	Pell.
Crossover	payment	periods
34	CFR	690.64	3	Determining	the	award	year	for	a	Pell	Grant	crossover	payment	period
conditions.	Regardless	of	whether	coursework	is	generally	offered	using	terms,	schools	always	have	the	option	of	treating
a	program	as	a	non-term	program	for	Title	IV	purposes.	See	Volume	3,	Chapter	1	for	detailed	guidance	on	standard	term,
nonstandard	term,	and	non-term	programs.
When	calculating	Pell	Grants,	you	must	generally	use	the	same	formula	for	all	years	in	a	student9s	program.	In	most
cases,	a	program9s	academic	calendar	determines	the	formula	that	must	be	used	to	calculate	Pell	Grant	awards,	and	that
formula	is	then	used	for	all	years	of	the	program.	However,	for	programs	offered	in	standard	terms	a	school	has	the	option
of	choosing	between	different	Pell	formulas,	as	explained	later	in	this	chapter.	For	such	programs,	a	school	normally
chooses	one	of	the	allowable	formulas	and	uses	that	same	formula	for	the	duration	of	the	program,	but	in	rare	cases	a
school	may	have	reason	to	change	from	the	originally	selected	formula	to	a	different	allowable	formula.	Any	such	change
in	Pell	formulas	for	standard-term	programs	can	only	be	made	at	the	beginning	of	a	new	award	year.
Pell	Grant	Payments	by	Payment	Period
Pell	Grants	must	be	spread	out	in	disbursements	over	the	course	of	a	program	of	study	to	help	meet	the	student9s	costs	in
each	payment	period.	The	payment	period	affects	when	Pell	funds	are	disbursed	and	the	exact	amount	to	be	disbursed.
See	
Volume	3,	Chapter	1	for	further	discussion	and	definitions	of	payment	periods.
A	student	who	doesn9t	enroll	in	one	of	the	payment	periods	of	a	program	won9t	receive	the	portion	of	their	award	for	that
payment	period.	If	the	student9s	enrollment	intensity	changes	in	the	next	payment	period,	the	annual	award	will	change
and	the	disbursement	amount	for	the	payment	period	will	be	different.
Your	school	must	apply	its	federal	student	aid	full-time	enrollment	standards	consistently	to	all	students	enrolled	in	the
same	program	of	study	for	all	Title	IV	purposes.	However,	your	school9s	academic	standard	may	differ	from	the	enrollment
standard	used	by	the	financial	aid	office	for	Title	IV	purposes.	For	example,	your	school's	academic	policy	may	define	full
time	as	six	hours	during	the	summer,	but	the	financial	aid	office	uses	12	hours	as	the	full-time	standard	for	all	terms,
including	the	summer	term.	For	more	on	enrollment	status,	see	Volume	1,	Chapter	1.
Basic	Pell	Grant	formulas
34	CFR	690.63	3	Pell	Grant	formulas
Chapter	3
Pell	Grant	Enrollment	Intensity	and	Cost	of	Attendance
Pell	Grants	and	Enrollment	Intensity
Enrollment	intensity	is	the	percentage	of	full-time	enrollment	at	which	a	student	is	enrolled,	rounded	to	the	nearest	whole
percent.	For	example,	if	full-time	enrollment	is	12	credit	hours	and	the	student	is	enrolled	in	7	hours,	the	enrollment
intensity	would	be	7	÷	12	×	100%	=	58.3%	(round	to	58%).
Pell	Grant	Enrollment	Intensity	for	Term-Based	Programs
In	a	term-based	program,	academic	progress	is	always	measured	in	credit	hours	(or	an	equivalent	measure	in	a	direct
assessment	program),	and	the	student9s	annual	award	depends	on	their	enrollment	intensity.	Your	school9s	standards	for
full-time	enrollment	must	meet	the	minimum	regulatory	requirements,	which	are	discussed	in	detail	in	
Volume	1,	Chapter
1	of	the	FSA	Handbook.
Programs	Offered	in	Standard	Terms
For	Title	IV	purposes,	full-time	enrollment	for	programs	offered	in	standard	terms	is	defined	by	the	institution	and,	for
undergraduate	students,	must	comprise	at	least	12	credit	hours.	Below	is	a	chart	of	enrollment	intensity	relative	to	full
time,	assuming	the	school	defines	it	as	12	credit	hours	for	financial	aid	purposes.	Enrollment	intensity	only	applies	to
Pell	Grant	eligibility.	All	other	Title	IV	programs	use	enrollment	status	categories	(full-time,	three-quarter
time,	half-time,	and	less-than-half-time).
Credit	Hours Enrollment	Intensity	Formula Enrollment	Inten sity Enrollment	Status	Equivalent
12	(or	more) 12	÷	12	=	1.0 100% Full-Time
11 11	÷	12	=	0.917 92% Three-Quarter	Time
10 10	÷	12	=	0.833 83% Three-Quarter	Time
9 9	÷	12	=	0.75 75% Three-Quarter	Time
8 8	÷	12	=	0.667 67% Half-Time
7 7	÷	12	=	0.583 58% Half-Time
6 6	÷	12	=	0.50 50% Half-Time
5 5	÷	12	=	0.417 42% Less-than-Half-Time
4 4	÷	12	=	0.333 33% Less-than-Half-Time
3 3	÷	12	=	0.25 25% Less-than-Half-Time