Will Pell Grant amount be reduced if COA is lower due to in-state tuition and merit scholarships?

Your Pell Grant won't be reduced based on the lower Cost of Attendance or merit scholarships in this case. The Pell Grant is primarily determined by your SAI of -1500, which qualifies you for the maximum amount. As long as the student is enrolled at least half-time and the cost of attendance exceeds the Pell Grant amount (which it clearly does at $25K), you'll receive the full $7395 regardless of which school you choose. The merit scholarship doesn't affect Pell eligibility either. So don't worry - choosing the more affordable school won't reduce your Pell Grant!

Just make sure your daughter is enrolled at least half time. My son lost his pell grant money when he dropped below the minimum credits.

The previous responses are correct. Pell Grants are based on your SAI and enrollment status, not on the school's cost or other aid received. With an SAI of -1500, you qualify for the maximum Pell ($7395) regardless of which institution you choose. Where COA and other scholarships do come into play is with other types of aid like institutional grants or federal loans. Some colleges might reduce their own institutional aid if you received outside scholarships, but they cannot and will not reduce your Pell Grant award. The only situation where Pell might be reduced is if the total aid exceeds COA across all sources, but with a $25K COA and only $12,395 in Pell + merit, you're nowhere near that threshold.

@commenter8 - What likely happened in your daughter's case was an over-award situation, which is different from what OP is describing. When all aid combined exceeds Cost of Attendance, schools are required to reduce some form of aid. They should reduce loans first, then work-study, and Pell Grants should be the last aid type affected. However, when the outside scholarship specifically restricts its use (like for tuition only), it can sometimes create packaging issues that temporarily appear to affect Pell. Glad you got it resolved!

Have you tried calling the Federal Student Aid Information Center directly to get a definitive answer? I was having similar concerns about my son's financial aid package, and I spent WEEKS trying to get through to someone at FSA. Kept getting disconnected or waiting on hold forever! Finally, I found this service called Claimyr that got me through to an agent in about 10 minutes. They connected me directly to FSA without the endless hold times. The agent confirmed exactly what others here are saying about Pell Grants not being reduced. You can see how it works in their demo video: https://youtu.be/TbC8dZQWYNQ or go to claimyr.com. Saved me so much frustration trying to get answers about our aid package.

@commenter5 - Yes, it worked for me! I was super skeptical too, but I was desperate after trying for almost two weeks to get through. The agent I spoke with was really helpful and cleared up all my questions about how Pell works with other scholarships.

Thanks everyone for the helpful responses! One more question - since the in-state tuition school has a lower COA, will that affect our eligibility for subsidized loans? We were hoping to avoid unsubsidized if possible.

I'm literally in the exact same situation with my twins!! We got different Pell amounts from different schools and I couldn't figure out why. One school gave them $7395 each but the other school only gave them $6895 each. Now I'm wondering if we should appeal the lower amount based on what people are saying here.

Thank you all for the information! We're definitely going to compare all the packages carefully now. It's nice to know the Pell Grant will stay the same regardless of which school she chooses. Makes the more affordable option even better since the total aid-to-cost ratio would be better.

That's exactly the right way to think about it! The more affordable school with the same Pell Grant amount means more of your costs are covered by free aid. You're essentially getting a better "aid package efficiency" - $7395 Pell + $5000 merit scholarship covers almost half of a $25K COA, versus the same $7395 covering less than 20% of a $40K+ COA at the private schools. Congratulations on having such a great affordable option for your daughter!

Exactly! You've discovered one of the best-kept secrets about college financing - that choosing a more affordable school actually maximizes the value of your federal aid. With your daughter's package, she'll have over $12,000 in free money ($7,395 Pell + $5,000 merit) toward a $25,000 cost, which is fantastic coverage. The private schools might have more prestige, but from a pure financial standpoint, that in-state option is giving you much better aid leverage. Plus, graduating with less debt means more financial freedom after college. Sounds like you're making a really smart choice!

This is such valuable information for families navigating college costs! I'm curious - for those who've been through this process, how did you ultimately weigh the financial benefits of the more affordable school against other factors like program quality, campus resources, or career services? The math clearly favors the lower-cost option with the same Pell Grant, but I'm wondering if there are other considerations that might justify the higher cost at private schools, or if the affordable route really is the obvious choice in most cases?