What is a Pell Grant and how do I apply?

Paying for college can be expensive, but Pell Grants can relieve some of that financial burden. Pell Grants are a form of federal need-based student aid that doesn’t usually need to be repaid. The grant can be used to pay for most college expenses and gives low-income students the extra funds they need to attend college with reduced student debt.

What is a Federal Pell Grant?

A Pell Grant is a form of federal student aid available to college students in the United States. It caters to students with “exceptional financial need” who are seeking an undergraduate degree. Unlike federal student loans, Pell Grant funds don’t have to be repaid if you complete your degree as a full-time student and don’t receive outside grants or scholarships that reduce your need for federal aid.

Pell Grants can cover all or a portion of academic expenses, including tuition costs, books, supplies and personal academic expenses like room and board.

Pell Grant awards may not cover the full cost of attending college. Qualified students can use them alongside other forms of financial aid to help pay for a four-year degree.

How much money can I get from the Pell Grant?

For the 2024-25 school year, the U.S. Department of Education has set the maximum Pell Grant award amount at $7,395. That amount changes yearly and is intended to supplement other forms of financial aid, such as student loans and scholarships.

The maximum amount is usually only available to students attending full-time. Part-time students may still be eligible for a lower Pell Grant award. The amount you receive in Pell Grant aid will vary based on the information you provide on your FAFSA application, like your expected family contribution (EFC) and your school’s cost.

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 (fall, summer and spring) in an academic year may be able to receive up to 150 percent of their scheduled Pell Grant award for that year.

Students who had a parent killed in the wars in Iraq or Afghanistan may qualify for higher grant award amounts.

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
• Be pursuing an undergraduate degree, with some exceptions
• Have not earned a bachelor’s, graduate or professional degree

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 2024, the following types of students may 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

Pell Grant eligibility is based on the expected family contribution (EFC) amount and not your income. Your family’s financial responsibility is based on verifying your family’s resources, including their total assets, yearly income and family size.

Because these grants are geared toward students with exceptional financial needs, low-income families will most likely qualify for the maximum award amount. Other factors, like the school’s cost of attendance (COA), also affect eligibility.

How do I apply for a Pell Grant?

You’ll start by filling out the Free Application for Federal Student Aid (FAFSA). The application process is relatively simple and requires submitting your parents’ financial information or your income if you support yourself.

You must create a Federal Student Aid identification and login to submit your FAFSA. Once you create 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 typically opens each year on Oct. 1 for the upcoming academic year. Apply as soon as possible to get your best shot at receiving aid.

How do I receive my Pell Grant?

Generally speaking, your school will first apply your Pell Grant funds to your college expenses. In other cases, you might also be paid directly. Check with your school to confirm how they handle student aid payments so there are no surprises on your first day of class.

Other college funding options

Most students will need more than the $7,395 Pell Grant maximum. Fortunately, many other federal aid options exist for funding higher education, including direct and unsubsidized direct loans, Direct PLUS loans and federal work-study programs.

You can also choose from a wide range of private student loans, but rates and terms will vary depending on your credit score, the type of education you’re pursuing and the college you attend. Make sure you understand the repayment terms that come with private student lending. Private loans don’t have as many repayment options or protections as federal student aid.

Frequently asked questions

• How do I check my Pell Grant status?

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

• What can I spend my Pell Grant on?

  Pell Grant funds can be used to cover most higher education expenses including tuition and fees for school, books, technology expenses, transportation to and from school and supplies. You cannot use the funds to finance your education at more than one school at a time.

• Do I have to pay taxes on Pell Grant money I receive?

  Money received through a Pell Grant is tax-free, provided you use the funds for eligible educational expenses. 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 be eligible for the award each academic year, you must fill out the FAFSA every year you pursue an undergraduate degree for up to 12 school terms and prove financial need.

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

  Yes, you can receive Pell Grant funds as a part-time student, but the award amount may be lower than if you attend full-time.

Bottom line

Pell Grants are a great option to help low-income students pay for some of the costs of college without any required repayment. The awards are made on a first-come, first-served basis for undergraduate students in good standing at their educational institution. The earlier you apply, the sooner you’ll know if you’re eligible.