Workforce Pell is here.
Your program lives or dies by the 70/70 rule.
Seventy percent of students must complete within 150% of normal time. Seventy percent of completers must be employed in the second quarter after exit. Miss either, and the program loses Pell eligibility — with a two-year bar on bringing it back. This handbook explains every clause, and the free report generator runs your numbers.
§ 1 — The two tests
70%
Completion rate
At least 70% of program participants must complete within 150% of the normal time to completion. A 12-week program is measured through week 18 — finish the hours, earn the credential.
How the calculation works →70%
Job placement rate
At least 70% of completers must be employed during the second calendar quarter after exit (34 CFR 690.94). Any job counts through 2028–29; after that, it must align with the occupation trained for, by SOC code.
How placement is measured →§ 2 — The phase-in
Three dates that matter
2026–27 → 2028–29
Transitional years
Your state determines and verifies completion and placement rates. Any employment counts toward placement.
2029–30
Placement tightens
Placement must be in the occupation trained for — or a similar high-skill, high-wage, or in-demand occupation.
2029–30 → 2030–31
Earnings test begins
First Secretary-calculated value-added earnings determinations (AY 2029–30) apply to the following year's tuition: published tuition + fees must not exceed median completer earnings minus 150% of the poverty line (34 CFR 690.95–.96).
The instrument
The 70/70 Report Generator
Enter cohort aggregates for a quick pass/fail check, or load a student roster for the full calculation — per-student 150% windows, second-quarter placement, and a print-ready report with methodology citations and an attestation block. Student-level data never leaves your browser.
§ 3 — The library
Four chapters, kept current
I
Workforce Pell & the 70/70 Rule
The new short-term Pell program effective July 1, 2026 — eligibility, the two 70% tests, approval, and what failure costs.
II
Pell Fundamentals for Clock-Hour Schools
The standing Title IV obligations: payment periods, NSLDS, R2T4, SAP, disbursements, and recalculation.
III
Audits & Reporting
Annual compliance audits, ED program reviews, FVT/GE reporting, and records retention.
IV
Data Playbooks
Operational how-tos: cohort files, 150% tracking, employment verification, and building the 70/70 report.
Start here
- § 1.1What Is Workforce Pell? The Short-Term Pell Grant, Explained7 min
- § 1.2The 70/70 Rule Explained: Completion and Placement Thresholds for Workforce Pell8 min
- § 2.1Pell Grants at Clock-Hour Schools: How the Basics Differ6 min
- § 4.1Building Your 70/70 Cohort File: The Minimum Data Schema7 min
- § 4.4Preparing Your 70/70 Report: From Cohort File to Submission-Ready Document7 min
§ 4 — Questions, answered plainly
The 70/70 rule, FAQ
- What is the 70/70 rule for Workforce Pell?
- To qualify for Workforce Pell Grants, a program must show that at least 70 percent of its students complete within 150 percent of the normal time to completion, and that at least 70 percent of completers are employed during the second quarter after exiting the program (roughly 180 days). Both thresholds must be met.
- When did the 70/70 rule take effect?
- July 1, 2026, the start of the 2026–27 award year. The final rule was published in the Federal Register on May 19, 2026 (34 CFR parts 600, 668, and 690), and program applications opened July 1, 2026.
- Who verifies the completion and placement rates?
- For award years 2026–27 through 2028–29, your state governor — working with the state workforce board — determines and verifies the rates under the state's methodology. After the transitional years, federal calculation methods apply.
- What counts as "employed" for the placement rate?
- The binding regulation (34 CFR 690.94) measures whether a completer is employed during the second calendar quarter after exiting the program, typically via state UI wage records — a June completer's measurement quarter is October–December. Through the 2028–29 award year, any employment in that quarter counts. Starting in 2029–30, the standard tightens: completers must be working in the occupation the program prepared them for (by SOC code), or a comparable high-skill, high-wage, or in-demand occupation. "Placed within 180 days" is a common misreading of the statute.
- Are any students excluded from the 70/70 calculations?
- Yes — four documented exclusions apply to both the numerator and denominator of both rates: students who died, suffered a totally disabling condition, were called to military service for more than 30 days, or were incarcerated. Each exclusion needs an evidence file; an undocumented exclusion is an audit finding.
- What happens if a program falls below 70/70?
- The program loses Workforce Pell eligibility, and the institution cannot re-establish it — or a substantially similar program with the same 4-digit CIP code and overlapping SOC codes — for two years. Reinstatement requires governor recertification.
- Is there a free tool to calculate a 70/70 report?
- Yes. The PellCompliance 70/70 Report Generator computes both rates from your cohort data and produces a print-ready report with methodology citations. Student-level data is processed entirely in your browser and never uploaded.