Can Incarcerated Students Receive Both VA Educational Benefits and Pell Grant Funds?

Yes, however keep in mind that incarcerated individuals may not receive Pell Grant funds in excess of their cost of attendance. For guidance on how schools should treat students who are eligible for both program, review PEP-Q8/A8 from the U.S. Department of Education's (ED's) Prison Education Programs Questions and Answers website:

 "PEP-Q8: Our school has identified some confined or incarcerated individuals who are eligible to receive both Veterans Affairs (VA) educational benefits and Pell Grant funds. VA benefits may not be reduced by the amount of a student’s Pell Grant award. How should the school treat students who receive both VA educational benefits and Pell Grant funds?

PEP-A8: Confined or incarcerated individuals may not receive Pell Grant funds in excess of their cost of attendance. Under the regulations at 34 CFR 690.62(b)(2), when a student receives both Pell Grant funds and other financial assistance, including educational benefits under a VA program, the school must first attempt to reduce the other financial assistance such that the total of that assistance and the individual’s Pell Grant funds do not exceed the student’s cost of attendance. If the other financial assistance cannot be reduced, such as VA benefits, the school must reduce the individual’s Pell Grant by the amount that the total financial assistance exceeds the individual’s cost of attendance. Both sources of aid must be treated as having paid educational expenses.

Under section 472 of the FAFSA Simplification Act, the cost of attendance for confined or incarcerated individuals is limited to tuition, fees, books, course materials, supplies, equipment, and the cost of obtaining a license, certification, or a first professional credential."

P&P Builder: NASFAA’s Policies & Procedures (P&P) Builder guides you step-by-step through the creation of a centralized, accessible policies and procedures manual. This is included in the cost of NASFAA Value Plus membership. There is an additional cost for other membership levels.