Hi, my daughter is a sophmore in HS so I understand this tax year is what Fafsa will consider for her freshman year of 2027-28. When i plug in my #s in the fafsa calculator it shows we would be elgible for $740 in Pell grant but our Sai is higher at around 28,000 due to larger assets in taxable accts. Would a pell grant only be awarded if the COA is higher than the SAI? We live in Utah and there is a state program that covers all remaining tuition even if you get the minimum pell grant at the state universities(at least at utah state)
@kelsmom can give the definitive answer.
But IIRC, the Pell is an entitlement and you get it even with a full free ride.
But wait for @kelsmom or maybe @Mwfan1921
Thanks, was just wondering if a much higher SAI over COA would make the pell grant inelgible for certain schools. Can always spend down taxable account but that would be the tail wagging the dog after state tax and potential federal capital gains and loss of potential gains vs trying to get free tuition. Utah State Univ rep said even if you get $1 of pell grant money, the Utah Promise scholarship covers the rest of tuition.
The Pell Grant is awarded based on a formula that can vary year to year. If you qualify for a Pell grant, it’s independent of the COA. It’s available regardless of the school (as long as the school participates in federal student aid programs - only a handful do not). If a school awards tuition to students who receive a Pell grant, the Pell is part of the package that covers tuition (as opposed to being “in addition to”).
That’s great to hear, was worried that the COA would result not getting the Pell Grant with my higher Sai. So is the Sai in relation to Coa used to determine other type of aid through the school?
Yes. COA - SAI is called “need.” Students may (but not necessarily will - most schools don’t actually meet need) receive a combination of aid up to “need.”
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So with a low enough AGI to qualify for a Pell, you could have theorically a SAI of 50,000 due to large assets and even with a lower COA of like 20,000, Pell would still be given?
The Pell formula changed drastically last year, and I no longer work in financial aid … so I don’t have a feel for it well enough to answer that question. The best thing would be to run various scenarios through an SAI calculator to see if your numbers result in Pell. Keep in mind that anything is possible in terms of what changes may occur at the federal level, so it’s possible the Pell formula may change (or not).
This is a decent SAI calculator, if you want to play around with some scenarios.
https://www.collegemoneymethod.com/2025-26-fafsa-student-aid-index-sai-calculator/
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Just remember…the link above is for 2025-2026…and that is not your student. Didn’t you say they would be starting college in 2027? If that is the case, the 2025 tax year…which just began…is what will be used. And your assets will be reported as of the day you file the financial aid forms.
Yes, run some NPCs but understand that at this time, these will be gross estimates only. You don’t have your 2025 taxes done yet (and won’t for a year). And yes, financial aid awarding policies do change.
As @kelsmom noted, the calculations for the Pell have even changed…and this could happen again. We have no way of knowing.
But my question….you mentioned $740 in Pell Grant in your OP. Would that amount make or break your student’s ability to attend college? Could they pick up a part time job and save to cover that cost just in case?
The loss of Pell would mean loss of the tuition grant - that’s why keeping some Pell, even a little, is so important in this case.
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The small Pell Grant amount isnt important, it is qualifying for any Pell Grant amount as my specific state has a program that is a last dollar scholarship to cover remaining tuition/fees if you get ANY Pell Grant amount, I know that can all change, but with this being first FAFSA year and if that program is still in effect, obviously qualifying for any Pell Grant amount will result on all of fees/tuition being covered.
Above is just one example, but the other state schools have similar programs.
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Thank you for the explanation!
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