A student who is incarcerated is eligible for a Federal Pell Grant if the student is enrolled in an eligible prison education program (PEP). Refer to the final rules published in the October 28, 2022, Federal Register. Under 34 CFR 668.32(c)(3), no student who is incarcerated can receive a Direct Loan.
The term “incarcerated” has a specific definition in the context of higher education; people are sometimes housed at federal detention centers that may not match that definition, so the answer to this question depends on the status of the individual. Effective July 1, 2023, under 600.2, a confined or incarcerated individual is defined as “An individual who is serving a criminal sentence in a Federal, State, or local penitentiary, prison, jail, reformatory, work farm, juvenile justice facility, or other similar correctional institution. An individual is not considered incarcerated if that individual is subject to or serving an involuntary civil commitment, in a half-way house or home detention, or is sentenced to serve only weekends.” Therefore, if a person held at a federal detention facility meets the definition of a confirmed or incarcerated individual, that person would need to be in a PEP in order to be eligible for Pell Grants, and would not be eligible for loans.
See also GEN-23-05, the U.S. Department of Education (ED) Prison Education Program Questions and Answers website, the ED Confined or Incarcerated Student Fact Sheet, and the Prison Education Programs Topics website.
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 Student Eligibility.
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