This New Change to Pell Grants Will Affect How You Receive Scholarships!

It’s that time of the year again! Time to start looking into scholarship opportunities, and with that comes an update that we believe students and families will need to know! We aim to use this blog to provide regular, routine updates in the world of college financial aid and planning for college. 

Starting on July 1st, 2026, students may become ineligible for Pell grants if they receive non-federal grants or scholarships that cover the full cost of attendance at college. Financial aid is gonna be a tricky obstacle to navigate in 2026, and a new change to Pell grants like this regarding scholarship opportunities is going to be something we want to help you with. Remember, you can always reach out and speak with a certified college planning expert here on our contact page! 

In this blog, we will explain what Pell grants are and how the new change will affect your students' financial aid regarding FAFSA and scholarships. 

How Do Pell Grants Work? 

First, we will need to run through and educate everyone on how a Pell grant works. Much of this information will come from the official government website for Financial Student Aid, and along with our analysis, we recommend you read more into this. You can always call us to speak with Jeff, Kayla, or AJ regarding your personal college planning situation. 

Pell grants are a major part of college financial aid and funding a student's degree. They are awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate, or professional degree. 

FAFSA is the free application to apply for student aid. All the colleges you apply to use your FAFSA information to determine your Pell Grant eligibility and how much you might receive. You have to fill out this form every year to stay eligible for the awards a Pell grant offers. We help students and families complete these forms locally here in WNY.

As of right now, there are no official award amounts for 2026-27, but they will most likely be available soon. In terms of what you receive from the Pell grant, that will depend on your student aid index first and foremost. 

The student aid index number is what a college’s financial aid office uses to determine how much student aid you would receive if you attended that school. This number comes from the information you provide in your FAFSA form.

The next few aspects of the awards system for Pell grants revolve around proper planning of a student's academics: 

• The cost of attendance at the school

• A student’s status as either a full-time or part-time student

• Whether they are planning to attend the school for at least a full year or for less

Most importantly, if you want to keep your status on these grants alive, just continue to maintain your enrollment. Once you have earned your degree, you won’t be able to receive that grant anymore.

What Else is Affected in The New Pell Grant Change?

Now that we’ve explained how this process works, let's talk about what else has changed on Pell grants moving forward. In the last year or so, a major bill was passed under the current presidential administration known as the Big Beautiful Bill. In it is a small section regarding changes to Pell grants that’s vital for people to know about.

Moving forward, the one major change is that students will be ineligible for Pell grants if they received a scholarship that covers the full cost of attendance, regardless of whether they qualified. 

It should be noted that this change won’t affect EVERY student who receives a scholarship. This is only for individuals who are covered in full.

However, student-athletes on a full ride or a superstar student on a full ride scholarship will be affected the most by this. Athletes tend to receive Pell grants more than most other students, and athletes may also be awarded surprise scholarships from time to time.

A student who goes to school farther from home could face some risk under this change, given that students could be awarded above the cost-of-attendance amount to defray travel expenses. What that means is that you just give them back the amount of money that was spent already. These are scenarios that will affect students greatly. 

These proposed changes in funding levels and eligibility criteria are something we want you to come to us for if you have any questions on how to handle them. We have been working with students and parents for years on how to handle this. We work with many local families to help them with FAFSA, and we have an abundance of scholarship resources here on our site! 

Students here in WNY can apply for our Young Achievers Scholarship (now open for 2026 applicants, WNY, and even nationally. Reach out to us today! We want to answer your questions and assist you. Reach out through our contact form, and we will get back to you soon.

College Scholarship FAQ

If I receive a full-ride scholarship to my college, will I still get a Pell Grant?

In most cases, the answer would be no. If your scholarships or non-federal grants fully cover your cost of attendance, you may no longer be eligible for a Pell Grant under the new rule. Cost of Attendance includes more than just your tuition. It will cover housing and meals, books and supplies, transportation, and other education-related expenses. Non-federal scholarships count towards this new rule, so make sure you read the scholarship application carefully to see if it meets the criteria before signing up.