Does a Student Lose His Year-Round Pell Grant If He Drops Below Half-Time During the Payment Period?

Scenario: The student is enrolled full time during the payment period/term, i.e., 100% enrollment intensity, during which he qualifies for year-round Pell (YRP) funds from his second Scheduled Award. The Federal Pell Grant funds are disbursed based on full-time enrollment. After beginning attendance in all courses, he later drops below 50% enrollment intensity.

Answer: No. Under the 2021 Consolidated Appropriations Act, revisions were made to Section 401(b) of the Higher Education Act of 1965 (HEA), as amended, [20 USC 1070a], removing the requirement that an otherwise Federal Pell Grant-eligible student be enrolled at least half-time to receive year-round Pell (YRP) beginning with the 2024-25 award year. For example, if a student had already been paid a full Scheduled Award for full-time time attendance in both fall 2024 and spring 2025, he, she, or they could be paid Pell for a summer term that is part of the 2024-25 award year based on any enrollment intensity greater than zero. See the following from the  2024-25 DRAFT SAI Guide Supplement: Pell Formulas and Enrollment Intensity:

"Year-Round Pell 

Students may be eligible to receive up to 150% of their Scheduled Pell Grant Award for an award year. The FAFSA Simplification Act made one change to Year-Round Pell. Previously, a Pell Grant-eligible student must have been enrolled at least half-time in a payment period during which they received more than 100% of their scheduled award. The Act removed the half-time enrollment requirement beginning with the 2024-25 award year but made no other changes to the Year-Round Pell provision. Year-Round Pell is not discussed in this resource and the examples provided do not include illustrations of disbursements that exceed 100%. Additional guidance on Year-Round Pell is currently available in Volume 3 Chapter 3 of the Federal Student Aid Handbook."

See the AskRegs Knowledgebase Q&A: Are There Any Special Eligibility Requirements a Student Must Meet For Year-Round Pell?