"The Pell Grant, which helps low-income students pay for college, is facing an estimated shortfall of $5.4 billion for fiscal 2026, according to the Congressional Budget Office," POLITICO reports.

... "But one of the main reasons is that the FAFSA Simplification Act of 2021 expanded eligibility. About 1.7 million more students were eligible for maximum Pell Grants in the 2025-26 FAFSA. That’s a 27 percent jump compared with the 2023-24 cycle, according to an analysis from National College Attainment Network, a nonprofit that helps students prepare for college. The maximum amount of money a student can get from a Pell Grant is $7,395."

"'Now we have a hole largely driven by expanded eligibility, which isn’t a bad thing,' said Melanie Storey, president and CEO of the National Association of Student Financial Aid Administrators. 'More students wanting to access post secondary education is a positive, but it is a budgetary challenge.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 2/13/2026