The basic requirements for a Pell Grant

To receive a Pell Grant, 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 at a school that participates in the federal student aid system, and have a valid Social Security number. You also cannot have already earned a bachelor's degree — Pell Grants are for first-time undergraduates only.

The federal government calculates your Expected Family Contribution (EFC) based on information you provide on the Free Application for Federal Student Aid (FAFSA). Your Pell Grant amount depends on this number, your enrollment status (full-time or part-time), and the cost of attendance at your school. The lower your EFC, the larger your grant.

You must also maintain satisfactory academic progress at your school — meaning you pass your courses and make steady progress toward your degree. Schools define this differently, so ask your financial aid office what the standard is.

Key Takeaways

  • You must be a U.S. citizen or may be able to access noncitizen, have a valid Social Security number, and be enrolled at least half-time in an undergraduate program at a participating school.
  • Your Pell Grant amount is based on your Expected Family Contribution, which comes from information you report on the FAFSA.
  • You cannot have already earned a bachelor's degree, and you must maintain satisfactory academic progress to keep receiving the grant.
  • The FAFSA opens October 1 each year, and you should submit it as early as possible because some schools have limited funds.
  • You must recertify your enrollment and academic standing each year to continue receiving Pell Grant money.

How the FAFSA determines your Pell Grant amount

The FAFSA asks about your income, assets, family size, and number of family members in college. The Department of Education uses a federal formula to turn these answers into your Expected Family Contribution — the amount your family is expected to contribute toward your education. This is not a bill; it is a number used to calculate how much federal aid you need.

Your Pell Grant amount equals the maximum grant for the year minus your EFC. The maximum Pell Grant changes each year and is set by Congress. If your EFC is very high, you may not receive a grant at all. If your EFC is zero or very low, you receive closer to the maximum amount.

Your school's cost of attendance also matters. If you attend an expensive school, your total aid package may be larger, but your Pell Grant itself is capped at the annual maximum. The grant does not cover the full cost at most schools.

Income and asset limits

There is no official income cutoff for a Pell Grant — even families earning six figures can receive one if they have many dependents or unusual circumstances. However, higher income almost always results in a higher EFC and a smaller grant or no grant at all.

Assets matter less than income. The formula counts a larger percentage of student assets than parent assets, so having savings in your name affects your EFC more than your parents' savings do. However, retirement accounts and home equity are not counted.

The best way to know whether you might receive a grant is to fill out the FAFSA. You cannot know your EFC without doing so, and there is no harm in submitting it even if you think your family earns too much.

Citizenship and immigration status requirements

You must be a U.S. citizen, U.S. national, or permanent resident (green card holder) to receive a Pell Grant. Some refugees and asylees also may have access to. Undocumented immigrants and temporary visa holders do not.

You will need your Social Security number to complete the FAFSA. If you are a permanent resident, you will need your Alien Registration Number. If you are unsure whether your immigration status qualifies, contact your school's financial aid office — they can tell you before you spend time on the application.

Enrollment status and degree requirements

You must be enrolled at least half-time in an undergraduate degree or certificate program. Half-time usually means at least six credit hours per term, though your school defines it. If you drop below half-time enrollment, your Pell Grant may be reduced or canceled for that term.

You cannot receive a Pell Grant if you have already earned a bachelor's degree. However, you can receive one for a second associate degree or for a certificate program if you have not yet earned a bachelor's. Some schools offer post-baccalaureate certificate programs that do not lead to a degree; these do not may have access to for Pell Grants.

Your school must be accredited and participate in the federal student aid program. Most public and private nonprofit colleges and universities do, as do many for-profit schools. If you are unsure whether your school participates, ask the financial aid office or check the Federal Student Aid website.

Satisfactory academic progress standards

Each school sets its own satisfactory academic progress (SAP) standard, but it must include a minimum grade point average (usually 2.0), a maximum time frame to complete your degree (usually 150 percent of the published program length), and a minimum number of credits you must complete each term. If you fall below any of these, you lose Pell Grant funding until you meet the standard again.

SAP is checked at the end of each term. If you fail a course, withdraw from too many classes, or do not complete enough credits, you may become ineligible. Some schools allow you to appeal if you have extenuating circumstances — illness, family emergency, or other hardship — but you must request the appeal before you lose funding.

If you lose Pell Grant funding due to unsatisfactory progress, you can regain it by meeting your school's standard for one full term without aid. Some schools allow you to appeal and regain funding sooner if you can show you have addressed the problem.

What happens after you submit the FAFSA

After you submit the FAFSA, the Department of Education processes it and sends your Student Aid Report (SAR) to you and your school. Your school uses the SAR to calculate your financial aid package, which may include a Pell Grant, loans, and work-study. You will receive a financial aid letter from your school showing what you have been offered.

You do not need to do anything else to receive a Pell Grant once your school has determined you are may be able to access. The grant is automatically applied to your school bill, usually at the start of each term. If the grant exceeds your bill, your school will refund the difference to you, though timing varies.

You must submit the FAFSA every year you want to receive a Pell Grant. The FAFSA opens October 1 and you should submit it as early as possible, because some schools have limited funds and award them on a first-come, first-served basis after other aid is accounted for.

Frequently Asked Questions

Can I get a Pell Grant if I have already earned an associate degree?

Yes, if you have not yet earned a bachelor's degree. You can receive a Pell Grant for a second associate degree or for an undergraduate certificate program. However, once you earn a bachelor's degree, you are no longer may be able to access for Pell Grants, even if you return to school for another degree.

What if my parents refuse to provide financial information for the FAFSA?

If your parents will not help, you can still submit the FAFSA using your own information only. However, if you are a dependent student (usually under 24, not married, and not a veteran), your EFC will be calculated as if your parents have zero income and assets, which may result in a larger grant. Some students in this situation do receive larger grants, but your school's financial aid office can explain how your specific situation will be treated.

Do I lose my Pell Grant if I change majors or schools?

Changing majors does not affect your Pell Grant as long as you remain enrolled at least half-time and maintain satisfactory academic progress. If you transfer to another school, your Pell Grant transfers with you — your school's financial aid office will handle the paperwork. However, if you drop below half-time enrollment or fall behind academically at the new school, you may lose funding.

What if I owe money back from a previous Pell Grant?

If you received a Pell Grant you were not supposed to receive (for example, because you were not actually enrolled), you may owe it back. This is called a grant overpayment. You cannot receive a new Pell Grant until you have repaid the overpayment or made a repayment arrangement with the Department of Education. Contact your school's financial aid office if you think you may owe money.

Can I receive a Pell Grant while taking online classes?

Yes, as long as you are enrolled at least half-time in an accredited program at a school that participates in federal student aid. Online enrollment counts the same as in-person enrollment. However, some schools have different rules about how they count online credits, so confirm with your financial aid office that your online courses will count toward your half-time status.