The One Big Beautiful Bill Act (H.R. 1) introduced some changes to the Pell Grant that will take effect after July 1, 2026, for the 2026-27 academic year. Students will see adjustments to eligibility while also being able to use the money for job-training programs. The proposal to change the requirement for the maximum Pell Grant from 12 credits to 15 credits did not pass in the Senate. Below, we highlighted some of these key changes and others that you need to know for the upcoming academic year and beyond.
Will the Pell Grant change?
Yes, the Pell Grant will be getting some changes due to the OBBBA on July 1, 2026:
- Pell Grant eligibility: Students will no longer be able to receive the Pell Grant if they're receiving grant aid from other sources that meet or exceed the cost of attendance (COA).
- Workforce Pell Grant: Students can use the Pell Grant to pay for job-training and certificate programs.
- Additional Pell Grant funds: The OBBBA adds $10.5 billion to the funds to address the Pell Grant shortfall.
- Foreign income changes: Foreign income will be used for Pell Grant determinations.
Do my credits impact Pell Grant eligibility?
Whether you're a full-time or part-time student can affect how much you receive from the Pell Grant. The OBBBA did not change the maximum Pell Grant requirement from 12 credits to 15 credits.
The maximum Pell Grant for the 2025-26 award year is $7,395. The exact amount you receive depends on your Student Aid Index (SAI), your college's COA, and whether you're a full-time or part-time student. You need to complete the Free Application for Federal Student Aid (FAFSA) each year to be considered for the grant.
You need to take 12 credits or more to be considered a full-time student and for the maximum Pell Grant. Part-time students can still receive the money, but at a reduced amount.
While the OBBBA was in the House, it was proposed that students would need to take 15 credits rather than 12 to be considered for the maximum Pell Grant. If it went through, it would have resulted in a $1,479 reduction to the $7,395 total for students who only took 12 credits.
However, the Senate removed these changes to the bill.
Did the OBBBA (H.R. 1) affect other forms of financial aid?
Yes, in addition to the Pell Grant, the H.R. 1 also affected federal loans and financial aid programs:
- Federal loan caps: Lifetime graduate student borrowing limits are dropping from $138,000 to $100,000. Professional student borrowing limits are increasing to $50,000 per year and $200,000 for lifetime.
- PLUS loans: The Grad PLUS loan program is ending. Parent PLUS loans will cap at $20,000 per year per child or $65,000 total per child.
- Repayment options: New borrowers will only be able to choose from an income-based or standard repayment plan. There will be fewer options for deferments and forbearances.
- FAFSA exemptions: Some families will have more assets exempt on the FAFSA, including family farms and small family-owned businesses.
- 529 plans: Students can use 529 college savings plans to pay for eligible credential testing.
While the Pell Grant is getting some changes, college students won't have to take 15 credits in order to receive the maximum amount. Other financial aid and federal student loan changes could affect your plan to pay for college. We always recommend completing your FAFSA as soon as possible after it becomes available on October 1 to increase your chances of receiving financial aid.
Visit the Citizens Student Hub to explore all of your financial aid options.