A Pell Grant pays your school directly, not you

A Pell Grant is federal money for undergraduate study that your school receives on your behalf. You do not receive a check or deposit into your personal bank account. Instead, your school's financial aid office gets the funds, subtracts what you owe them for tuition and fees, and sends you any leftover money—usually by the middle of each semester.

The amount you receive depends on your Expected Family Contribution (EFC), now called the Student Aid Index (SAI), which comes from your FAFSA. Schools use this number to calculate how much federal aid you need. A lower SAI means a larger Pell Grant. The maximum Pell Grant amount changes each year; for the 2024–2025 school year, it is $7,395, but this varies based on your circumstances and your school's cost of attendance.

You must be a U.S. citizen or may be able to access noncitizen, enrolled at least half-time in an undergraduate degree or certificate program, and have financial need as determined by the FAFSA. You also cannot be in default on a federal student loan or owe a refund on a federal grant.

Key Takeaways

  • Your school receives the Pell Grant money and applies it to tuition, fees, and room and board before sending you any remainder.
  • The amount you receive is based on your Student Aid Index from the FAFSA, your school's cost of attendance, and your enrollment status.
  • You must complete the FAFSA each year to receive a Pell Grant; the grant does not carry over from year to year.
  • Pell Grants do not have to be repaid, but you must maintain satisfactory academic progress at your school to keep receiving one.
  • If you attend multiple schools in one year or change schools, your Pell Grant amount may be split or recalculated between institutions.

How your school uses the money

When your school receives your Pell Grant, the financial aid office first applies it to direct costs—tuition, fees, and room and board if you live on campus. If the grant is larger than these costs, your school sends you the difference, usually as a check or direct deposit. This leftover money can be used for books, supplies, transportation, or living expenses.

If your Pell Grant is smaller than your direct costs, it covers part of what you owe, and you are responsible for the rest through other means: loans, scholarships, work-study, or out-of-pocket payment. Your school's financial aid office will show you a financial aid package that lists all the money you have been offered and what you still owe.

Some schools hold refunds until after the semester starts or until you have attended classes for a certain number of days. This is called a disbursement hold or refund hold. Ask your financial aid office when you can expect to receive any leftover funds.

The FAFSA determines your grant amount each year

To receive a Pell Grant, you must complete the Free Application for Federal Student Aid (FAFSA) every year you are in school. The FAFSA asks about your income, assets, family size, and other household information. The U.S. Department of Education uses this information to calculate your Student Aid Index (SAI)—a number that represents how much your family is expected to contribute to your education.

Your school then uses your SAI and the school's cost of attendance to determine your Pell Grant amount. The formula is: Cost of Attendance minus Expected Family Contribution equals Financial Need. Your Pell Grant cannot exceed your financial need or the maximum grant amount for that year.

You must submit the FAFSA by your school's deadline to receive funds on time. Many schools have deadlines in February or March, though some accept applications later. If you miss your school's deadline, you may still be able to file the FAFSA, but your grant may be delayed or reduced if funds run out.

Pell Grants only cover undergraduate study

Pell Grants are available only for undergraduate degrees and certain certificate programs at accredited schools. You cannot use a Pell Grant for graduate school, professional degrees (such as law or medicine), or non-degree programs at most institutions.

You can receive a Pell Grant for up to 12 semesters or the equivalent of six years of full-time study, whichever comes first. This is called your Pell Grant may be able to access period. If you change majors, take longer to graduate, or attend part-time, your may be able to access period still counts down. Once you have used all 12 semesters of may be able to access, you cannot receive another Pell Grant, even if you have not yet earned your degree.

Some students receive a Pell Grant for a certificate program and then want to pursue a bachelor's degree at the same school or a different school. Your remaining Pell Grant may be able to access follows you to the new program, so plan ahead if you think you may continue your education.

You must maintain satisfactory academic progress

To keep your Pell Grant from year to year, you must meet your school's Satisfactory Academic Progress (SAP) standards. These standards typically require a minimum grade point average (GPA)—often 2.0 or higher—and completion of a certain percentage of the credits you attempt each semester, usually 67 percent or more.

If you fall below your school's SAP standards, you lose your Pell Grant may be able to access. You may be able to regain it by improving your grades or completing more credits, but you will not receive grant money during the semester you are on academic probation. Some schools allow you to appeal if you had extenuating circumstances, such as illness or a family emergency.

SAP standards vary by school, so ask your financial aid office what you need to do to stay may be able to access. Withdrawing from classes, failing courses, or taking incomplete grades can all affect your progress and your grant.

What happens if you attend multiple schools or leave school

If you attend more than one school in the same academic year—for example, starting at a community college and transferring to a four-year university—your Pell Grant is split between the schools based on how long you attend each one. Each school receives a portion of your grant, and you may receive refunds from both institutions.

If you leave school before the semester ends, your school may recalculate how much of your Pell Grant you have earned based on how many days you attended. Federal rules require schools to use a specific calculation called the Return of Title IV Funds formula. If you earned less than the full grant, you may owe money back to the school or the federal government, or your refund may be smaller than expected.

If you plan to take a semester off or transfer schools, contact your financial aid office before you leave. They can explain how it will affect your grant and what you may owe.

Pell Grants do not have to be repaid

Unlike federal student loans, a Pell Grant is assistance programs that you do not repay. You keep the grant even after you graduate or leave school. However, if you received more grant money than you were may have access to to—for example, because you did not complete the semester or your SAI changed—you may be required to return some or all of it.

If you owe a refund, your school will contact you with instructions on how to repay it. You can also contact your school's financial aid office to ask about a repayment plan if you cannot pay the full amount at once.

Frequently Asked Questions

Can I use my Pell Grant at any school?

No. Your school must be accredited and participate in the federal student aid program. Most colleges and universities do, but some trade schools and online programs do not. Check the Federal Student Aid website or ask your school's financial aid office to confirm it is may be able to access.

What if my family's income changes during the school year?

Your Pell Grant for that year is based on the FAFSA you filed, which uses the previous year's tax information. Changes to your current income do not affect your grant for the year you filed. However, you can file a FAFSA correction if your family's circumstances changed significantly, such as a job loss or death in the family.

Do I have to use my Pell Grant refund for school expenses?

No. Once your school sends you a refund of leftover grant money, you can use it for any expenses, including rent, food, transportation, or personal needs. However, if you received more grant money than you needed, you may owe some back if your school recalculates your aid.

What happens to my Pell Grant if I take a semester off?

You do not receive a Pell Grant for semesters when you are not enrolled. When you return to school, you can file the FAFSA again and receive a new grant based on your current circumstances. Your remaining may be able to access period continues to count down, so plan your time off carefully.

Can I get a Pell Grant if I already have a bachelor's degree?

No. Pell Grants are only for undergraduate study. If you already have a bachelor's degree and want to pursue another one, you are not may be able to access. You may be may be able to access for other federal aid, such as loans, so contact your school's financial aid office.