Pell Grant Equity Act of 2007 - Amends the Higher Education Act of 1965 to make the formula for calculation of an individual Pell Grant which includes, in part, the sum of the student's tuition, inapplicable for the 2007-2008 academic year. (Thus suspends for such year the "tuition sensitivity provision" which prohibits maximum Pell Grant awards to students attending low-tuition institutions of higher education even if their income is low enough to otherwise qualify for the maximum award.)
Amends the Federal Family Education Loan program to lower from 23% to 22% for FY2008, the percentage of a borrower's student loan payment made subsequent to default that a guaranty agency may retain for deposit in its operating fund if the Secretary of Education has already reimbursed it for such default.