What is a Pell Grant and how do I apply?

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Paying for college isn’t an easy feat; fortunately, many students can qualify for federal aid, including Pell Grants. Pell Grants are a form of federal need-based student aid that doesn’t need to be repaid. They can be used to pay for tuition, books, room and board and more, making them a great avenue for low-income students to attend and graduate from college when they may not otherwise be able to afford to.

What is a Federal Pell Grant?

A Pell Grant is a form of need-based federal student aid available to college students in the United States. Pell Grants can cover all or a portion of qualifying academic expenses, like tuition costs, books, supplies and even personal academic expenses like room and board. Unlike student loans, however, Pell Grants don’t have to be repaid under most circumstances.

The federal government created Pell Grants in order to help students with the most amount of financial need. As a result, these grants aren’t always easy to qualify for. However, those who do qualify receive substantial aid that they can use alongside student loans, scholarships and other grants. While Pell Grants aren’t necessarily designed to cover the full cost of attending college, they can certainly help.

How much money can I get from the Pell Grant?

Pell Grants are intended to supplement other forms of financial aid, such as scholarships and student loans. Every year, the U.S. Department of Education sets the maximum amount of each Pell Grant award; for the 2024-25 school year, that amount is $7,395. The grant may be even higher for certain students who had a parent killed in the wars in Iraq or Afghanistan. Still, not every student is eligible to receive the full award, and some don’t qualify at all.

The amount you receive in Pell Grant aid will vary based on factors like your expected family contribution (EFC), the cost of your school, whether you attend school full time or part time and your enrollment plans.

Eligible students can receive the Pell Grant each year they’re enrolled, up to 12 terms or roughly six years. Students who enroll for three terms in an academic year may be able to receive up to 150 percent of their scheduled Pell Grant award for that year.

Pell Grant eligibility requirements

Pell Grants are available to many students, but there are certain requirements that you will have to meet in order to be considered eligible. In order to receive a Pell Grant, you must:

• Have a high school diploma or GED
• Be enrolled or accepted to enroll in an approved program
• Have a valid Social Security number
• Complete the Free Application for Federal Student Aid (FAFSA)
• Maintain satisfactory status in your schooling

Additionally, you will need to meet at least one of the following criteria:

• Be a U.S. citizen or U.S. national
• Have a green card
• Have an Arrival-Departure Record (I-94)
• Have battered immigrant status
• Have a T-Visa

As of 2023, the following types of students also qualify for Pell Grants:

• Students unable to complete studies due to a school closing
• Borrowers whose loans were discharged under borrower defense to repayment
• Students who are incarcerated

Since eligibility for Pell Grants is based on the expected family contribution amount and not income, there is no specific income cutoff to consider. Your EFC estimates your family’s financial responsibility based on resources like their total assets, yearly income and family size.

However, these grants are geared toward students who experience exceptional financial needs, so those from low-income families are most likely to qualify for the maximum award amount. Other factors, like the school’s cost of attendance (COA), are also factored into your eligibility.

How do I apply for a Pell Grant?

To see if you qualify for a Pell Grant and other financial aid, you’ll start by filling out the Free Application for Federal Student Aid (FAFSA). This form helps schools and government bodies determine how much aid each student is eligible for. The application process is relatively simple and requires submitting your parents’ financial information or your income if you are supporting yourself.

You will have to create a Federal Student Aid identification and login to submit your FAFSA. Once you have created your account, enter and submit the necessary information.

The FAFSA must be completed yearly to maintain eligibility for Pell Grants and other financial aid. The application opens each year on Oct. 1 for the upcoming academic year, and it’s best to apply as soon as possible to have your best shot at receiving aid.

How do I receive my Pell Grant?

Generally speaking, your school will handle your Pell Grant funds, but you might also be paid directly. In some cases, schools will combine these two methods — most likely, the financial aid office will apply the grant funds to your tuition and fees and send you the remaining funds, if there are any.

Other college funding options

Since Pell Grants can pay a maximum of $7,395 per year in most cases, many students must rely on additional funding to make it through college. Fortunately, there are many options for funding higher education, ranging from student loans, work-study programs, scholarships and other grants.

A Pell Grant can get you part of the way there if you’re pursuing an undergraduate degree. If you hope to qualify and feel you may be eligible for this type of aid, filling out the FAFSA form before the deadline is the only way to find out.

The bottom line

Pell Grants are available on a first-come, first-served basis for undergraduate students in good standing at their educational institution. Pell Grants don’t have to be repaid and offer low-income students an opportunity to pursue their education.

Frequently asked questions

• How do I check my Pell Grant status?

  After filling out your FAFSA, you can check the status of your application by logging into your account on the Federal Student Aid website or calling your school’s financial aid office.

• What can I spend my Pell Grant on?

  Pell Grant funds can be used to cover tuition and fees for school, though you cannot use the funds to finance your education at more than one school at a time. Outside of tuition and fees, however, you can use the funds for books, technology expenses, transportation and supplies.
  
  
  Money received through a Pell Grant is tax-free, provided you use the funds for eligible educational expenses. However, the Internal Revenue Service (IRS) states that you must keep track of Pell Grant money spent on incidental purchases (room and board, optional equipment, etc.) and include them in your gross income for tax purposes.

• How do I maintain my grant?

  To maintain your grant, you or your family must remain financially eligible for the award each academic year. To prove this eligibility, you must fill out a FAFSA form every year you pursue an undergraduate degree for up to 12 school terms.

• Can I still receive a Pell Grant as a part-time student?

  Yes, you can receive Pell Grant funds as a part-time student. However, you may receive a lower amount of aid than you would if you were to attend college on a full-time basis.

Other college funding options

Since Pell Grants can pay a maximum of $6,895 per year in most cases, many students must rely on additional funding to make it through college. Fortunately, there is a broad range of options for funding higher education, including student loans, work-study programs, scholarships and other grants.

A Pell Grant can get you part of the way there if you’re pursuing an undergraduate degree. If you hope to qualify and feel you may be eligible for this type of aid, filling out the FAFSA form before the deadline is the only way to find out.