A new Government Accountability Office (GAO) report found that the FAFSA Simplification Act is meeting key goals, including increasing Pell Grant eligibility and expanding access to the maximum award. In the 2024–25 academic year, nearly 10 million students were eligible for Pell—about 6% more than the prior year—and almost 8 million received the maximum $7,395 award. GAO attributed the growth to improvements following earlier rollout delays and technical issues in 2024, with federal officials and the Office of Federal Student Aid implementing a more stable application process across subsequent cycles. The report also indicated that much of the benefit reached students from middle to upper-middle-income households, with the share of students eligible for the maximum award rising notably for families in defined income bands. However, eligibility increases have created budget pressure, and the article noted that Congress may need to find about $17 billion to prevent cuts in eligibility. For higher education institutions, the update signals that simpler FAFSA processing can improve grant targeting while raising near-term funding constraints.
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