A Pell Grant and FAFSA are not the same thing

FAFSA is the form you fill out to tell the federal government about your finances. A Pell Grant is one type of money the government may give you based on what that form reveals. Think of FAFSA as the application process and a Pell Grant as one possible outcome.

You must complete FAFSA to be considered for a Pell Grant, but completing FAFSA does not automatically mean you will receive one. Your Expected Family Contribution (EFC) — now called the Student Aid Index — determines whether you meet the income and asset limits. The federal government sets those limits each year, and they change based on your household size and income.

FAFSA also opens doors to other types of aid: federal student loans, work-study positions, and state or institutional grants. A Pell Grant is just one piece of the aid package you might receive after submitting the form.

Key Takeaways

  • FAFSA is the required form that collects your financial information; a Pell Grant is one type of aid you may receive based on that information.
  • You cannot receive a Pell Grant without submitting FAFSA first, but submitting FAFSA does not may provide you will receive a Pell Grant.
  • Pell Grants are only for undergraduate students with financial need, while FAFSA can be used to determine aid for graduate students and other borrowers.
  • Your Student Aid Index (formerly EFC) determines Pell Grant may be able to access, and the federal government updates income and asset limits annually.

What FAFSA actually does

FAFSA collects information about your family's income, assets, household size, and other circumstances. The Department of Education uses this data to calculate your Student Aid Index — a number that tells schools how much your family is expected to contribute toward your education costs.

Schools then use that index to build a financial aid package. They subtract your expected family contribution from the school's cost of attendance to determine your financial need. That need figure is what determines how much federal aid you can receive, including Pell Grants.

FAFSA also determines your may be able to access for federal loans, work-study, and grants from your state or the school itself. Submitting FAFSA is the gateway to all federal student aid, not just Pell Grants.

What a Pell Grant actually is

A Pell Grant is a federal grant — meaning you do not have to repay it — for undergraduate students with financial need. The amount you receive depends on your Student Aid Index, the cost of attendance at your school, and whether you are a full-time or part-time student.

The federal government sets a maximum Pell Grant amount each year. For the 2024–2025 academic year, the maximum is $7,395, but most students receive less. Your actual award depends on how much financial need the school calculates for you.

Pell Grants are only for undergraduate study. Graduate students, professional students, and students pursuing certain certificate programs cannot receive them, even if they submit FAFSA and have financial need.

Who can receive a Pell Grant

To receive a Pell Grant, you must be a U.S. citizen or may be able to access noncitizen, be enrolled in an undergraduate program at a school that participates in federal aid programs, and have a Student Aid Index that falls within the federal limits. You must also be making satisfactory academic progress — a standard your school sets and monitors.

Income limits exist, but they are not absolute cutoffs. A student from a family earning $60,000 per year might receive a Pell Grant at one school and not at another, depending on the school's cost of attendance. A student from a family earning $100,000 might receive a small Pell Grant if the school is expensive enough.

You do not have to be a U.S. citizen to receive a Pell Grant, but you must be an may be able to access noncitizen — typically someone with a green card, refugee status, or asylum status. Undocumented students are not may be able to access for federal Pell Grants.

Why you need FAFSA to get a Pell Grant

Schools have no other way to verify your financial information or calculate your need. FAFSA is the official document the Department of Education requires. Without it, the school cannot determine your Student Aid Index or build your aid package.

FAFSA also connects you to state and institutional aid that may be available. Many schools will not consider you for their own grants or scholarships unless you have submitted FAFSA, even if you are paying out of pocket.

The form is free to submit, and you can update it if your circumstances change during the year. If your family's income drops or you become independent, you can file a FAFSA correction to potentially increase your aid.

Other aid you might receive instead of or alongside a Pell Grant

Federal student loans are available to most students regardless of financial need, though your Student Aid Index affects how much you can borrow. Subsidized loans are need-based; unsubsidized loans are not.

Federal Work-Study provides part-time jobs on or near campus, with wages paid by the federal government. Your school determines whether you are offered work-study based on your financial need.

State grants vary widely. Some states offer need-based grants only to residents attending in-state schools. Others offer merit-based aid or grants for specific majors. Your state's higher education agency determines what is available.

Institutional grants come from the school itself. Many schools use FAFSA information to award their own money to students with financial need. These grants often have fewer restrictions than federal Pell Grants and may be available to graduate students or international students.

What happens after you submit FAFSA

The Department of Education processes your FAFSA and sends your Student Aid Index to each school you listed. Schools typically receive this information within a few days to a few weeks, depending on when you submit.

Each school then calculates your financial need and sends you a financial aid offer letter. This letter shows all the aid the school is offering — Pell Grants, loans, work-study, and institutional aid. You are not required to accept all of it; you can decline loans or work-study and accept only grants.

If your circumstances change during the year — your parents lose a job, your family size changes, or you become independent — you can contact your school's financial aid office to request a FAFSA correction or appeal. Schools have some flexibility to adjust your aid package based on documented changes.

Frequently Asked Questions

Do I have to submit FAFSA to get a Pell Grant?

Yes. FAFSA is the only way the federal government collects the financial information needed to determine Pell Grant may be able to access. Without it, you cannot receive a Pell Grant or any other federal aid.

If I submit FAFSA, am I may provide a Pell Grant?

No. Your Student Aid Index must fall within federal limits, and you must be an undergraduate student. Even then, your school's cost of attendance affects the amount you receive. Some students with higher Student Aid Index scores receive smaller grants or none at all.

Can graduate students receive Pell Grants?

No. Pell Grants are only for undergraduate students. Graduate students can submit FAFSA to access federal loans and other aid, but not Pell Grants.

What if I do not may have access to for a Pell Grant but still need money?

You may still receive federal student loans, work-study, or grants from your state or school. Submit FAFSA to see what aid is available to you. Many schools also offer merit-based scholarships that do not depend on financial need.

Can my Pell Grant amount change from year to year?

Yes. The maximum Pell Grant amount changes annually, and your award depends on your Student Aid Index each year. If your family's income changes, your Pell Grant amount may increase or decrease. You must submit FAFSA each year to receive aid.