Pell Grants Are Federal Money for Undergraduate Tuition, Not Loans

A Pell Grant is money from the U.S. Department of Education that goes directly to you or your school to pay for college costs. You do not repay it. The grant covers tuition, fees, room and board, books, and supplies at any school that participates in the federal student aid program — which includes most colleges, universities, and career schools in the United States.

The amount you receive depends on your family's income and assets, the cost of the school you attend, and whether you are a full-time or part-time student. For the 2024–2025 school year, the maximum Pell Grant is $7,395, but most students receive less. The actual number changes every year based on federal funding.

Pell Grants are need-based, meaning your family's financial situation determines whether you get one and how much. They are different from merit scholarships, which reward grades or test scores, and different from loans, which you must repay with interest.

Key Takeaways

  • Pell Grants are federal money you do not repay, sent to your school or to you to cover college costs including tuition, fees, books, and living expenses.
  • The amount depends on your family's income and assets, your school's cost, and whether you attend full-time or part-time.
  • You must complete the FAFSA (Free Application for Federal Student Aid) to be considered, and you must be a U.S. citizen or may be able to access noncitizen.
  • The money goes to your school first to cover tuition and fees; any leftover amount is paid to you for other expenses.
  • Pell Grants are available only for undergraduate study, not for graduate or professional degrees.

Who Can Receive a Pell Grant

To receive a Pell Grant, you must be a U.S. citizen, national, or may be able to access noncitizen (which includes permanent residents and certain other visa holders). You must have a valid Social Security number, be enrolled or accepted for enrollment as an undergraduate student at a participating school, and be making satisfactory academic progress toward a degree.

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. You can check whether a specific school participates by searching the Federal Student Aid website.

There is no age limit. You can be 17 or 67 and still receive a Pell Grant if you meet the other requirements. You can also receive a Pell Grant if you are returning to school after time away, or if you are changing schools.

How the FAFSA Determines Your Grant Amount

The FAFSA (Free Application for Federal Student Aid) is the form you must complete to be considered for a Pell Grant. You fill it out once per school year, and the information you provide — your income, assets, family size, and number of family members in college — is used to calculate your Expected Family Contribution (EFC), now called the Student Aid Index.

The federal government then subtracts your Student Aid Index from the cost of attendance at your school. The result is your financial need. Your Pell Grant amount is based on that need, up to the annual maximum. If your family's income is very low, you may receive the full maximum. If your family's income is higher, your grant will be smaller or you may not receive one at all.

The FAFSA opens October 1 each year and remains open through June 30 of the following year. You should complete it as early as possible, because some schools have limited funds and award grants on a first-come, first-served basis after federal money runs out.

How the Money Reaches You

When your school receives your Pell Grant, it applies the money first to your tuition, fees, and other charges billed by the school. If money remains after those costs are covered, the school pays the leftover amount to you, usually by check, direct deposit, or a student account card. This leftover money is meant to cover books, supplies, transportation, and living expenses.

The timing varies by school. Some schools disburse (pay out) grant money at the start of each semester; others do it monthly or at other intervals. You should ask your school's financial aid office when you can expect to receive your money and in what form.

If you withdraw from school before the end of the semester, your school may be required to return some of your grant money to the federal government. The amount depends on how far into the semester you were when you left. Your school's financial aid office can explain the specific rules.

Income Limits and How They Work

Pell Grants do not have a strict income cutoff. Instead, your family's income is one of several factors used to calculate your need. A family earning $60,000 per year might receive a grant, while a family earning $40,000 might not — the difference depends on family size, number of dependents in college, and assets.

Generally, students from families earning under $60,000 per year are more likely to receive a Pell Grant, but there is no may provide. The only way to know whether you may have access to and how much you would receive is to complete the FAFSA. The form itself is free, and completing it takes about 10 minutes if you have your tax information ready.

Your may be able to access can change from year to year if your family's income or circumstances change. You must complete a new FAFSA each school year to continue receiving a grant.

Pell Grants Only Cover Undergraduate Study

Pell Grants are available only for undergraduate degrees — bachelor's degrees and associate degrees. If you are pursuing a graduate degree (master's, PhD, or professional degree like law or medicine), you are not may be able to access for a Pell Grant. Graduate students can borrow federal loans, but grants are not available at that level.

You can also receive a Pell Grant for certificate programs at career and technical schools, as long as the program is at least two years long and the school participates in federal student aid. Short-term certificates or programs at schools that do not participate in federal aid do not may have access to.

What Happens If You Change Schools or Attend Part-Time

If you transfer to a different school, your Pell Grant transfers with you. You do not need to reapply; your school's financial aid office will handle the transfer. However, your grant amount may change because it is based partly on the cost of attendance at your new school. A more expensive school may result in a larger grant; a less expensive school may result in a smaller one.

If you attend part-time instead of full-time, your Pell Grant is reduced proportionally. A student attending half-time receives half the grant amount. Some students attend part-time because of work or family obligations, and the grant still helps cover costs, but the amount is smaller.

You can also receive a Pell Grant if you are taking a semester off and then returning, as long as you complete a new FAFSA for the year you return. Your may be able to access does not expire if you take a break from school.

Frequently Asked Questions

Do I have to repay a Pell Grant?

No. Pell Grants are not loans. You do not repay the money under any circumstances. This is different from federal student loans, which you must repay with interest after you graduate or leave school.

What if my school costs more than my Pell Grant?

Your Pell Grant covers part of your costs. You can use other sources to cover the rest: scholarships, federal loans, work-study, or money from family. Your school's financial aid office can show you all the aid you are offered together and help you understand your options.

Can I use a Pell Grant at any college?

Only at schools that participate in the federal student aid program. Most colleges, universities, and career schools do participate, but some do not. You can check whether a specific school participates by searching the Federal Student Aid website or asking the school's financial aid office directly.

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

Your Pell Grant for the current year is based on the FAFSA you completed in the fall. Changes to your income during the year do not affect your grant for that year. However, if your circumstances change significantly, you can contact your school's financial aid office to discuss whether a Special Circumstance review is possible.

Can I receive a Pell Grant if I have a criminal record?

A criminal record does not automatically disqualify you. However, certain drug-related convictions can affect your may be able to access. You should complete the FAFSA and disclose any relevant convictions; your school's financial aid office can explain how it affects your specific situation.