FAFSA Income Thresholds
Pell Grant income limits by family size, SAI calculation components, and automatic eligibility criteria for maximum aid.
Key Numbers
Max Pell
$7,395 (2025-26)
SAI Range
−$1,500 to ∞
Income Cutoff
No Hard Limit
Max Pell FPL
175% / 225%
The FAFSA (Free Application for Federal Student Aid) determines eligibility for federal grants, loans, and work-study. There is no hard income cutoff—eligibility is calculated using the Student Aid Index (SAI), which considers income, assets, family size, and other factors. The 2026-27 FAFSA uses 2024 tax year data and opened October 1, 2025.
FAFSA Simplification (2024-25+)
EFC → SAI: “Expected Family Contribution” was renamed to “Student Aid Index.” The SAI can go as low as −$1,500, indicating highest financial need.
Siblings in College: No longer reduces your SAI. Each student's aid is calculated independently.
Retirement Contributions: Voluntary pre-tax contributions to retirement plans are no longer counted as untaxed income.
Fewer Questions: Reduced from 108 to ~36 questions, with direct IRS data transfer for most applicants.
FAFSA Timeline
| Award Year | Tax Year Used | Opens | Federal Deadline |
|---|---|---|---|
| 2025-26 | 2023 | Oct 1, 2024 | June 30, 2026 |
| 2026-27 | 2024 | Oct 1, 2025 | June 30, 2027 |
State and school deadlines are often earlier. Many states have priority deadlines in February or March. Some aid is first-come, first-served.
Pell Grant Thresholds
Maximum Pell Grant eligibility is tied to the federal poverty level (FPL). Dependent students with parental AGI at or below 175% FPL (225% for single parents) qualify for the maximum $7,395 grant. Starting 2026-27, students with an SAI ≥ $14,790 (2× max Pell) are ineligible for any Pell Grant.
Maximum Pell Income Thresholds (2026-27)
| Family Size | Two-Parent (175% FPL) | Single Parent (225% FPL) |
|---|---|---|
| 2 (parent + student) | $35,770 | $45,990 |
| 3 | $45,185 | $58,095 |
| 4 | $54,600 | $70,200 |
| 5 | $64,015 | $82,305 |
| 6 | $73,430 | $94,410 |
| Each additional | +$9,415 | +$12,105 |
Based on 2024 Federal Poverty Guidelines (48 contiguous states). The 2026-27 FAFSA uses the prior-prior year's poverty guidelines. Alaska and Hawaii have higher thresholds.
Partial Pell Grant Calculation
| Student Aid Index | Pell Grant Amount | Status |
|---|---|---|
| −$1,500 to $0 | $7,395 | Maximum |
| $1,000 | $6,395 | Calculated (Max − SAI) |
| $3,000 | $4,395 | Calculated (Max − SAI) |
| $6,655 | $740 | Minimum (10% of max) |
| $6,656 – $14,789 | $0 | Below minimum; may qualify for Min Pell |
| ≥ $14,790 | $0 | Ineligible (OBBBA 2× rule) |
Pell = $7,395 − SAI, rounded to nearest $5. Must be ≥ $740 to receive a calculated Pell. Students below the minimum threshold may still qualify for a Minimum Pell Grant based on FPL criteria. The $14,790 SAI cap is new for 2026-27 under the One Big Beautiful Bill Act.
Always submit the FAFSA even if you think your income is too high. Many colleges require it for institutional grants, and families earning $100,000+ often receive significant aid—but only if they complete the application.
SAI Formula & Allowances
The Student Aid Index (SAI) measures a family's financial strength. A lower SAI means more need and more potential aid. For dependent students, the SAI combines parent and student contributions from income and assets.
SAI Calculation Components
| Component | What's Included | Assessment Rate |
|---|---|---|
| Parent Income | AGI + foreign income exclusion, minus taxes paid, income protection allowance, and employment expense allowance | 22–47% |
| Parent Assets | Savings, investments, real estate (not primary home), business equity (if >100 employees) | 5.64% |
| Student Income | AGI minus income protection (~$11,400 for 2025-26); retirement contributions no longer counted | 50% |
| Student Assets | Savings, investments, UTMA/UGMA; excludes retirement accounts and parent-owned 529 plans | 20% |
Parent Income Protection Allowance (2025-26)
| Family Size | 1 in College | 2 in College |
|---|---|---|
| 3 | $22,410 | $18,580 |
| 4 | $27,670 | $22,920 |
| 5 | $32,660 | $27,030 |
| 6 | $38,200 | $31,630 |
Under FAFSA Simplification, number of family members in college no longer automatically reduces SAI. Schools may use professional judgment to adjust.
Parent Asset Protection Allowance (2025-26)
| Household Type | Approx. Protection | Assessment Above |
|---|---|---|
| Two-parent household | $5,000–$7,000 | 5.64% |
| Single parent | $2,000–$3,500 | 5.64% |
Asset protection has eroded significantly. The allowance was once ~$50,000+ for older parents. The exact amount varies by age of the older parent. Assets above the protection amount are assessed at 5.64%.
Eligibility & Special Circumstances
Several circumstances can qualify students for automatic maximum Pell eligibility, asset reporting exemptions, or SAI adjustments through professional judgment.
Automatic Maximum Pell Eligibility
| Criterion | Result |
|---|---|
| Parent not required to file federal tax return | SAI = −$1,500 (Maximum Pell) |
| AGI ≤ 175% FPL (two-parent) or ≤ 225% FPL (single parent) | Maximum Pell |
| Received means-tested benefit + income threshold met | Maximum Pell + assets not reported |
| Dependent of deceased servicemember or public safety officer | Maximum Pell (Special Rule; exempt from SAI cap) |
Qualifying Means-Tested Benefits
If anyone in the household received any of these benefits in the past 2 years, the student may qualify for the maximum Pell Grant and/or exemption from asset reporting: Medicaid, SNAP (food stamps), SSI (Supplemental Security Income), TANF, WIC, and Free/Reduced School Lunch.
Professional Judgment
Qualifying Changes
Job loss or income reduction, death of a parent or spouse, divorce or separation, disability, large medical expenses, natural disaster losses, other unusual circumstances
How to Request
Contact the financial aid office directly. Provide documentation of the change and a written explanation. The school can adjust your SAI to reflect current circumstances rather than the prior-prior tax year.
2026-27 Changes (One Big Beautiful Bill Act)
| Change | Detail |
|---|---|
| SAI cap for Pell | SAI must be < 2× max Pell ($14,790 for 2026-27) to receive any Pell Grant |
| Family business exclusion | Businesses with ≤100 employees excluded from asset calculation |
| Family farm exclusion | Farms on which the family resides excluded from assets |
| Commercial fishing exclusion | Family-owned commercial fishing operations excluded from assets |
| Foreign income in Pell calc | Foreign earned income exclusion added to AGI when determining Pell eligibility |
OBBBA changes are effective 2026-27 only. The SAI cap and asset exclusions do not apply retroactively to 2025-26 awards. These were implemented with the official FAFSA launch on October 1, 2025.
Sources
- 1.Federal Student Aid — 2026-27 Pell Grant Maximum and Minimum Award Amounts
- 2.Federal Student Aid — 2026-27 SAI and Pell Grant Eligibility Guide
- 3.Federal Student Aid — 2026-27 FAFSA and Pell Grant Eligibility Updates (OBBBA)
- 4.HHS ASPE — 2024 Federal Poverty Guidelines
- 5.Federal Student Aid — 2025-26 FSA Handbook, Volume 7: Calculating Pell Grants
- 6.StudentAid.gov — FAFSA Application
This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.