Pell Grants and FAFSA are different things, but they are connected

FAFSA is the form you fill out. A Pell Grant is money you may receive after you submit it. The FAFSA (Free Application for Federal Student Aid) collects information about your family's finances and your school enrollment. The U.S. Department of Education uses that information to calculate how much federal aid you may receive. A Pell Grant is one type of that aid — a grant that does not have to be repaid, as long as you meet the conditions.

Think of it this way: FAFSA is the door. Pell Grants are one of the things that may be behind it. You cannot get a Pell Grant without submitting FAFSA first, but submitting FAFSA does not mean you will receive a Pell Grant. Other aid types — loans, work-study, or other grants — may be what you receive instead, or in addition.

Key Takeaways

  • FAFSA is a form you submit to the Department of Education; a Pell Grant is a type of aid money you may receive after submitting it.
  • Your FAFSA results determine your Expected Family Contribution (EFC), which the school uses to calculate how much Pell Grant money you may receive.
  • Pell Grants are only for undergraduate students; FAFSA can be used to determine aid for graduate students as well.
  • You must submit FAFSA every year you want aid, and your Pell Grant amount can change based on your family's financial situation and enrollment status.

What FAFSA actually does

FAFSA collects information about your income, your parents' income (if you are a dependent), assets, household size, and school enrollment. You submit it once per academic year. The Department of Education processes your answers and sends back a Student Aid Report (SAR) that shows your Expected Family Contribution (EFC) — the amount your family is expected to contribute toward your education costs.

Your school receives your FAFSA results and uses your EFC to calculate your financial need. That need is the difference between what the school costs and what your family is expected to pay. Based on that need, the school builds a financial aid package. That package may include grants, loans, and work-study — or it may include only some of those things.

What a Pell Grant is and who can receive one

A Pell Grant is federal money for undergraduate students with financial need. Unlike a loan, you do not repay it. The amount you receive depends on your EFC, the cost of your school, and whether you are a full-time or part-time student. For the 2024–2025 academic year, the maximum Pell Grant is $7,395, but most students receive less. The actual amount varies by school and by your circumstances.

You must be a U.S. citizen or may be able to access noncitizen, enrolled at least half-time in an undergraduate program, and have financial need. You cannot receive a Pell Grant if you already have a bachelor's degree. If you are a graduate student, FAFSA can help you access other types of aid — loans and some grants — but not Pell Grants.

How your FAFSA results determine your Pell Grant amount

The Department of Education uses your EFC to set a maximum Pell Grant amount. If your EFC is zero (meaning your family is expected to contribute nothing), you receive the maximum. As your EFC increases, your Pell Grant decreases. Once your EFC reaches a certain threshold, you receive no Pell Grant at all, though you may still receive other aid.

Your school also looks at the total cost of attendance — tuition, fees, room and board, books, and living expenses. If that cost is lower than the maximum Pell Grant, your grant is reduced to match the school's cost. For example, if the maximum Pell Grant is $7,395 but your school costs $5,000 per year, you would receive $5,000, not $7,395.

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

FAFSA determines your need for all types of federal aid. Your school may offer you federal loans (which you repay with interest), Federal Work-Study (a part-time job), or other grants. Some schools also use FAFSA results to award their own institutional grants or scholarships. The combination of aid you receive is called your financial aid package, and it varies by school.

If you do not receive a Pell Grant — because your EFC is too high or because you are a graduate student — you may still receive loans or other aid. Your school's financial aid office can explain what you are offered and why.

When you need to resubmit FAFSA and how it affects your Pell Grant

You must submit FAFSA every academic year you want aid. Your family's financial situation may change, which changes your EFC and your Pell Grant amount. If your family's income drops, your Pell Grant may increase. If it rises, your Pell Grant may decrease or disappear. Your enrollment status also matters — if you drop from full-time to part-time, your Pell Grant amount may be reduced.

You must also maintain satisfactory academic progress to keep your Pell Grant. That means passing your courses and making progress toward your degree. If you fail courses or fall behind, your school may suspend your aid until you meet the standard again.

Frequently Asked Questions

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

Yes. FAFSA is the only way the Department of Education knows about your financial situation and can determine whether you have need for a Pell Grant. Without submitting FAFSA, you cannot receive a Pell Grant.

Can I get a Pell Grant if I did not fill out FAFSA correctly?

If your FAFSA has errors, you can correct it. Log into your FAFSA account and make changes. Your school's financial aid office can also help you fix mistakes. Correcting errors may change your aid amount, so contact your school if you make changes.

What happens to my Pell Grant if I change schools?

Your Pell Grant follows you to your new school. Your new school will see your FAFSA results and calculate your aid based on their cost of attendance. Your grant amount may change because the school's costs are different, but you keep your Pell Grant as long as you remain an undergraduate with financial need.

Can I use my Pell Grant for anything besides tuition?

Your school applies your Pell Grant to tuition and fees first. Any remaining money goes to other costs — room and board, books, supplies, transportation. Some schools send leftover funds to you directly; others apply them to your student account. Ask your school's financial aid office how they handle excess Pell Grant funds.

If I get a Pell Grant, do I still have to repay it?

No. Pell Grants are assistance programs and do not have to be repaid. However, if you withdraw from school or drop below half-time enrollment, your school may ask you to repay part of it. Your school will tell you if that happens.