Credible sources are reporting the likelihood that Congress will reduce the Pell Grant maximum from $7,395 to $5,710 effective for all students eligible to receive it in 2026-2027. This represents a reduction of $1,685 per student which will be very hard for students to replace. Fully 86% of Scholarship Foundation students qualify forPell Grant, and the vast majority need the maximum award. The Scholarship Foundation of St. Louis issues this advisory to its students and applicants, as well as to all students with significant financial need.
Each year, current and prospective college students receive financial aid offer letters from their college; these documents are essential to understanding college costs and affordability. It is always essential that students review and do the math to determine if they have enough financial aid to cover their costs for the upcoming school year; it is even more important in the face of looming financial aid cuts at the federal level.
Financial aid offer letters are going out to first-time freshmen now, but continuing college students often must wait well into the summer to receive their letters. Late last week, the Congressional Budget Office estimated that there is a significant, and potentially imminent, shortfall in the Pell Grant program. A shortfall could require changes to the program, including adjustments to eligibility criteria and/or changes in award amounts. This report came just a day before the U.S. Department of Education released its fiscal year 2026 budget summary, which calls for a reduction in the maximum Pell award. Estimated Pell Grant eligibility is provided to students immediately upon submitting the FAFSA and is also reflected on their FAFSA Submission Summary, which is the processed summary of the form. It is now clear that those estimates are precarious.
The Scholarship Foundation of St. Louis recommends that all students:
- Carefully review financial aid offer letter(s) for words like “estimate”, “preliminary”, etc. If the letter includes these terms, students should follow up with the school(s) to ask what, if anything, is needed to finalize the offer and when to expect that document.
- Look for a Pell Grant award on financial aid offer letter(s). If offered a Pell Grant for 2026-27, students are advised to contact schools to ask what steps they would take to replace Pell Grant funds, if award amounts are reduced or eligibility criteria changed.
- Do the math. The Foundation recommends every student calculate carefully every year. It is vitally important to verify that sources of financial support are identified and cover all costs, without the need to borrow either an unsubsidized Direct Loan, a Parent Loan for Undergraduate Students (PLUS), or a private loan. Those who would like help with reviewing or comparing financial aid letters or exploring options if there is a gap are invited to:
- Join remaining Foundation Decision-Making workshops on Tuesday, March 3 and Tuesday, March 10, both at 6pm. Read more information and register here.
- Schedule a free appointment with a Student Advisor to review letters, discuss options, and support efforts to speak with schools directly.
- Carefully monitor communications from the financial aid office in the weeks and months ahead. If Pell eligibility changes, or award amounts are reduced, colleges will send updated financial aid offers. It is important to review updated financial aid offers and look for any changes to Pell Grant awards or other components of the financial aid offer. Students who observe changes to their aid offers should contact their financial aid office to be sure they understand those changes; again, a Student Advisor is happy to support any student who needs assistance.
The Scholarship Foundation has prepared contingencies for Foundation students. Continuing Scholarship Foundation students who are concerned about the implications of this news can and should contact their Student Advisor directly.
