Pell Plus Program

Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended by adding at the end the following:

(k)

Pell Plus program

(1)

Program established

(A)

In general

Beginning with award year 2025–2026, for each award year for which a student receives a Federal Pell Grant and meets the requirements of paragraph (2), the Secretary shall award such student an additional Federal Pell Grant, referred to as a Federal Pell Plus Grant, in an amount equal to the amount of the student’s Federal Pell Grant award determined under this section for such award year, except as provided in subparagraph (B). (B)

Cost of attendance reductions

In any case in which a student is awarded a Federal Pell Grant under this section and a Federal Pell Plus grant under this subsection, the combined total of such Federal Pell Grant, such Federal Pell Plus Grant, and the amount provided by a Pell Plus institution in accordance with paragraph (4)(B)(i)(II)(aa) shall not exceed the cost of attendance (as defined in section 472) at the institution at which that student is in attendance. In the case that such combined total would exceed such cost of attendance, the Secretary shall reduce the amount of the Federal Pell Plus grant awarded to the student, taking into consideration the corresponding reduction in the amount provided by a Pell Plus institution in accordance with paragraph (4)(B)(i)(II)(aa) as a result of the reduced Federal Pell Plus grant amount, until the combined total of such reduced Federal Pell Plus Grant, such reduced amount provided by a Pell Plus institution in accordance with paragraph (4)(B)(i)(II)(aa), and the Federal Pell Grant award of the student does not exceed such cost of attendance. (2)

Student eligibility

A student meets the requirements of this paragraph, if the student— (A)during the award year during which the student receives a Federal Pell Plus Grant under paragraph (1)— (i)is enrolled— (I)in the student’s first undergraduate baccalaureate course of study; and (II)at a Pell Plus institution; and (ii)is maintaining progress toward completion of such course of study in not more than a total of 4 academic years; and (B)has completed at least 4 semesters, or the equivalent, of such course of study. (3)

Duration limits

The period during which a student receives a Federal Pell Plus Grant under paragraph (1) shall be included in calculating the duration limits with respect to such student under subsection (d)(5), and to the extent that such period was a fraction of a semester or the equivalent, only that same fraction of such semester or equivalent shall count towards such duration limits. (4)

Pell Plus institutional eligibility

For purposes of this subsection, a Pell Plus institution is an eligible institution for purposes of this subpart that— (A)notifies the Secretary that the institution desires to participate in the program under this subsection; (B)agrees to provide, to each student receiving a Federal Pell Plus Grant under paragraph (1)— (i)for each award year for which the student receives such Federal Pell Plus Grant— (I)a notification that shall include— (aa)whether the student is maintaining the progress toward completion required under paragraph (2)(A)(ii); (bb)in a case in which the student is not maintaining such progress toward completion, a list of available student support services and additional resources to assist the student in completing the course of study for which the student is receiving the Federal Pell Plus Grant in not more than a total of 4 academic years; and (cc)the amount of funds the student is receiving under the Federal Pell Plus Grant and from the institution under subclause (II)(aa); and (II)an amount of funds— (aa)equal to the amount of such Federal Pell Plus Grant received by the student for such award year; and (bb)using the non-Federal resources of the institution, such as— (AA)an institutional grant or scholarship; (BB)through a tuition or fee waiver; or (CC)foundation or other charitable organization funds; and (ii)in the case of a student who, as of the beginning of the third academic year of the course of study for which the student is receiving the Federal Pell Plus Grant, is not maintaining the progress toward completion required under paragraph (2)(A)(ii), a warning during such third academic year that the student will not be eligible for a Federal Pell Plus Grant under paragraph (1) for the fourth academic year of such course of study unless the student demonstrates, by not later than the end of such third academic year, progress toward completing such course of study by the end of the fourth academic year of such course of study; and (C)in the case of an institution that provides institutional grant or scholarship aid to a student for the academic year preceding the academic year for which the student receives a Federal Pell Plus Grant under paragraph (1), agrees to provide the amount of such institutional grant or scholarship aid for any academic year for which the student receives such Federal Pell Plus Grant that the institution would have provided to such student in the absence of such Federal Pell Plus Grant, except that such amount of aid may be reduced to ensure that the combined amount of such aid, and the Federal Pell Plus Grant, the amount under subparagraph (B)(i)(II)(aa), and the Federal Pell Grant award provided to the student does not exceed the cost of attendance (as defined in section 472) at such institution for such academic year; and (D)the Secretary determines meets the requirements of this paragraph.