While FAFSA Simplification may have been a challenge for many schools, a recent GAO study confirms what many in the industry thought – that student eligibility increased for Pell Grants after changes were made to the FAFSA.
A recent study published by the Government Accountability Office (GAO) indicates that student eligibility for Pell Grants, the largest source of federal grant aid for students, increased for the 2024-25 academic year after the Department of Education simplified the FAFSA application and updated eligibility criteria.
According to the study, the GAO found that 9.9 million students were eligible for a Pell Grant in 2024-25. Compared to the prior year of 2023-24:
- 6% more students were eligible for Pell Grants.
- 31% more students were eligible for the maximum award.
- much of the increase in eligibility was among students with household incomes of $60,001-$125,000.
Pell Grant eligibility also increased for students with other family members in college. In 2024-25, 60% of these students were eligible for a Pell Grant, compared to 55% in 2023-24. Eligibility for the maximum award also increased with 77% of Pell-eligible students with other family members in college were eligible for the maximum award of $7,395 in 2024-25, compared to only 48% in 2023-24.
The study did find that there may have been situations in which some students were negatively impacted by FAFSA simplification. For example, a student in a family of four with another family member in college and a household income of $95,000 may have been eligible for a Pell Grant in 2023–24 but not in 2024–25.
The full report from the GAO can be accessed here.
