Can We Award Year-Round Pell To a Transfer Student Whose SAI Has Changed?

Scenario: We have a student who was selected for verification after she transferred to our school for the spring. She had already received a Federal Pell Grant in the fall at the previous school. We performed verification and, based on student's updated family size, her student aid index (SAI) changed resulting in a decrease in the student's annual Pell eligibility. Based on the return of Title IV funds (R2T4) calculation at the previous school, the student received a reduced Pell Grant. We are trying to determine whether the student is now only eligible for a Pell Grant at our school based on her new SAI, or if the student can receive additional funds under the year-round Pell (YRP) provisions.

Answer: Yes. According to guidance NASFAA received from the U.S. Department of Education (ED), "the institution would calculate Pell for the payment period as they would normally do—an award based on the student’s [enrollment intensity]. The limitation is that the student can’t receive more than 150% total for the award year. GEN-17-06 addresses when a payment period may include an amount from both the initial Pell Grant Scheduled Award and from the additional Pell Grant award."

The student in this scenario may be eligible for additional Pell Grant under the YRP rules. GEN-17-06 states that "a student who transfers into a different academic program or to a different institution may receive additional Pell Grant funds if the student is otherwise eligible, has remaining Pell eligibility up to 150 percent of the student’s Pell Grant Scheduled Award for the new program or new institution."

Note that the FAFSA Simplification Act removed the half-time enrollment requirement beginning with the 2024-25 award year but made no other changes to the YRP provision.

Remember, a transfer student's Pell eligibility is calculated using a percentage and not using simple subtraction. Refer to Volume 7, Chapter 6 of the FSA Handbook for guidance on calculating the student's remaining Pell eligibility. Also remember that if a student’s SAI changes due to corrections, updating, or an adjustment, and the SAI change would change the amount of the Pell award, you must recalculate the Pell award for the entire award year.

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Pell Grant.