In late August, two bugs in the FAFSA processing system caused incorrect Pell Grant eligibility information to be sent to students and institutions. Both issues have now been resolved: impacted records have been reprocessed, and affected students will receive corrected notices this week.
What Happened
- On August 29, 2025, the U.S. Department of Education inadvertently introduced two bugs into the FAFSA processing system, causing incorrect Pell Grant eligibility information to be sent to students and institutions.
These errors affected:
- The Pell Grant eligibility flag, which for a subset of 2025–26 records was set to null, making about 10,000 students wrongly appear ineligible for even the minimum Pell Grant.
- The Pell Grant eligibility estimate on the FAFSA submission screen and in post-submission emails: some applicants were told they were unlikely to be eligible before their FAFSA was fully processed.
How It’s Been Fixed
- On September 9, 2025, the first bug (null flag) was corrected; affected records were reprocessed with a special reprocessing code (“01”).
- On September 11, 2025, the second bug (missing estimate) was fixed. Students who saw the incorrect eligibility estimate during submission will receive a corrected email the week of September 29, 2025. Note: ISIRs were not affected by this second error.
What It Means for Students & Schools
- Students who were mistakenly told they were ineligible may now find that they are eligible for the Pell Grant.
- Schools should be aware that students may contact financial aid offices with questions after receiving corrected notices.
- The Department is reviewing its processes to prevent similar errors in the future.
SOURCE: (APP-25-25) Update and Resolution of Federal Pell Grant Eligibility Issues