Federal regulations state that a student may receive federal aid for only one additional attempt of a previoulsy passed course. A "passed" course is defined as any grade higher than an "F," regardless of institutional or program requirements for a higher grade.
If a student retakes a previously passed course more than once, the course will not count toward their Title IV enrollment status. Since Pell Grant amounts are based on enrollment intensity, this may result in a reduced Pell Grant award.