A U.S. Government Accountability Office report released May 11, 2026 found that simplifying the FAFSA added 1.9 million students to Pell Grant eligibility in the 2024–25 academic year. Nearly 10 million students total now qualify — 6 percent more than the year before — and the biggest gains went to middle-income families, not just the lowest earners.

What the GAO Report Actually Found

The federal government spent years simplifying the Free Application for Federal Student Aid. The results are now in: it worked.

A new report from the U.S. Government Accountability Office (GAO-26-107928), released publicly on May 11, 2026, found that the FAFSA Simplification Act — passed by Congress in 2020 — delivered meaningful gains in Pell Grant access during its second full admissions cycle.1

Key findings:

  • Nearly 10 million students were eligible for a Pell Grant in the 2024–25 academic year — a 6 percent increase over the prior year.
  • Nearly 8 million of those students qualified for the maximum award of $7,395, which is up 31 percent from 2023–24.
  • The simplification added an estimated 1.9 million students to Pell Grant rolls compared to the previous formula.

That 31 percent jump in maximum-award eligibility is the number families should focus on. It means the new formula doesn't just get more people in the door — it's qualifying more students for the full amount.

Who Gained the Most

Here's what most headlines are missing: the biggest gains didn't go to the lowest-income families. They already qualified under the old system.

The GAO found that much of the eligibility increase occurred for students from households earning between $60,001 and $125,000 per year. These are families who previously earned too much to qualify for Pell but are still feeling real financial pressure when it comes to college costs.

Among households earning between $40,001 and $80,000, the number of students qualifying for the maximum Pell award doubled.1

That's a significant shift. Middle-income families who resigned themselves to full-price tuition may have more aid available now than they assumed.

1.9 million

Why the Old Formula Left Families Out

The original FAFSA used a calculation called the Expected Family Contribution (EFC), which critics said was opaque and often overestimated what families could afford. The new formula, called the Student Aid Index (SAI), uses a cleaner calculation and, in many cases, produces a lower number — meaning more students meet the financial need threshold.

The simplified application itself is also shorter. The old FAFSA ran more than 100 questions; the new version reduced that significantly, which may have brought in families who found the old form too confusing to complete.

If your family income is between $60,000 and $125,000, complete the 2026–27 FAFSA if you haven't already. This report confirms that income range saw the most unexpected eligibility gains. Check your Student Aid Report to see your current SAI.

What This Means If You're Currently Enrolled

If you're already in college and have been filling out the FAFSA each year, the eligibility expansion likely already applied to you for the 2024–25 or 2025–26 award years. Your financial aid award letter should reflect the new formula.

If you haven't filed for 2026–27 yet, the FAFSA deadline varies by state and school — don't assume you have time. Many state grant programs run out of money before the federal deadline, so filing early matters.

For families new to the process, our FAFSA step-by-step guide for parents walks through the application from start to finish.

The Rollout Was Rocky — But Recovery Is Real

This report comes after one of the most troubled FAFSA launches in recent memory. In early 2024, the Department of Education's rollout of the new simplified form was delayed by months and hit with technical errors that disrupted aid timelines for millions of students.

The GAO report, released to Congress on April 14, 2026 before going public May 11, is partly an official accounting of whether the pain was worth it. The data suggests the answer is yes — at least on eligibility numbers.

The report's release coincides with record FAFSA completion rates for the 2026–27 cycle, which opened earlier than any prior year.

One Catch Worth Knowing

Eligibility for Pell does not guarantee the full award. The actual amount you receive depends on your SAI, enrollment status, and how many Pell-eligible semesters you have left. Students have a lifetime limit of 12 semesters (six years) of Pell eligibility — so planning matters, especially if you're considering transferring or changing programs.

If you're trying to understand what your aid package actually means, start with how to decode a financial aid award letter. If you think your award is wrong or your situation has changed, a financial aid special circumstances appeal may be worth pursuing.

Pell Grant eligibility does not automatically transfer if you take a break from school, drop below half-time enrollment, or change schools. Always notify your financial aid office before making enrollment changes.

What to Do Right Now

  1. Haven't filed for 2026–27? File now at studentaid.gov — see your state's deadline.
  2. Already filed? Log in to studentaid.gov to check your Student Aid Index and confirm your school received your information.
  3. Middle-income family? Don't assume you won't qualify. Run the numbers. This report shows that families earning up to $125,000 are seeing gains they didn't expect.
  4. Didn't get the full Pell? Check whether your school has strong institutional aid that fills the gap.
  5. Hitting a wall with aid? Review the FAFSA changes that matter now to make sure you're not missing anything from the new formula.

The Pell Grant is the foundation of federal financial aid. This report confirms the simplified FAFSA is doing what Congress intended — getting more of it to more students.

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Footnotes

  1. U.S. Government Accountability Office. (2026, May 11). Pell Grants: Overall Student Eligibility Increased After Free Application for Federal Student Aid Simplification (GAO-26-107928). https://www.gao.gov/products/gao-26-107928 ↩ ↩2

  2. NASFAA. (2026, May 12). GAO: Student Eligibility for Pell Grants Increased After FAFSA Simplification. National Association of Student Financial Aid Administrators. https://www.nasfaa.org/news-item/38884/GAO_Student_Eligibility_for_Pell_Grants_Increased_After_FAFSA_Simplification ↩