A Pell Grant is federal money for undergraduate education that you do not have to repay

A Federal Pell Grant is a sum of money from the U.S. Department of Education given to undergraduate students to help pay for college. Unlike a loan, you do not pay it back. The amount you receive depends on your family's financial situation, the cost of the school you attend, and whether you are a full-time or part-time student.

The grant goes directly to your school, which applies it to tuition, fees, and room and board. If money remains after those costs are covered, the school sends you the difference. You can use a Pell Grant at any college or university that participates in federal student aid programs — nearly all do.

Key Takeaways

  • Pell Grants are federal money for undergraduate students that does not require repayment, unlike student loans.
  • The amount you receive is based on your Expected Family Contribution (EFC), the cost of attendance at your school, and your enrollment status.
  • You must complete the Free Application for Federal Student Aid (FAFSA) to be considered for a Pell Grant.
  • For the 2024–2025 school year, the maximum Pell Grant is $7,395, though the amount changes yearly and varies by student.
  • You can receive a Pell Grant for up to 12 semesters or the equivalent, as long as you remain an may be able to access undergraduate student.

How the amount of your grant is calculated

The Department of Education uses a formula to determine how much grant money you receive. It starts with your Expected Family Contribution (EFC) — a number calculated from information you provide on the FAFSA that reflects what your family can reasonably afford to pay toward education. The lower your EFC, the more grant money you may receive.

The formula then subtracts your EFC from the Cost of Attendance (COA) at your school. The COA includes tuition, fees, books, supplies, room and board, transportation, and personal expenses. The result is your financial need. Your Pell Grant cannot exceed your financial need, and it cannot exceed the maximum grant amount set by Congress for that year.

If you attend school part-time, your grant is reduced proportionally. A student taking half the normal course load receives half the grant. This means your grant amount can change each year if your family's finances change, if you change schools, or if you change your enrollment status.

What you need to do to receive a Pell Grant

You must complete the Free Application for Federal Student Aid (FAFSA) to be considered for a Pell Grant. The FAFSA collects information about your family's income, assets, household size, and other factors. You submit it online at fafsa.gov, and the Department of Education processes it and sends results to your school.

Your school's financial aid office uses the FAFSA results to determine your financial need and create a financial aid package. If you are found to have financial need and meet other requirements, the Pell Grant is included in that package. You do not apply separately for the Pell Grant itself — it is part of the federal aid process.

You must also meet basic requirements: be a U.S. citizen or may be able to access non-citizen, have a valid Social Security number, be enrolled as an undergraduate student, and maintain satisfactory academic progress at your school. Satisfactory progress typically means earning a minimum GPA and completing enough credits each term.

Who is not able to receive a Pell Grant

You cannot receive a Pell Grant if you are pursuing a graduate or professional degree — Pell Grants are for undergraduate students only. You also cannot receive one if you are incarcerated in a federal or state penal institution, or if you have already earned a bachelor's degree.

If you have received Pell Grant funds totaling the maximum allowed — currently 12 semesters or the equivalent of six years of full-time study — you are no longer able to receive additional grants. Some students also lose may be able to access if they do not maintain satisfactory academic progress, as defined by their school.

How long you can receive Pell Grant money

You can receive a Pell Grant for a maximum of 12 semesters or the equivalent, which is roughly six years of full-time study. This is called your Pell Grant may be able to access Used. Each semester you receive a grant, a portion of your 12-semester limit is used up, whether you attend full-time or part-time.

Once you reach the 12-semester limit, you cannot receive additional Pell Grant funds, even if you have not yet completed your degree. This limit applies across all schools — if you transfer, the semesters you used at your previous school count toward your total.

The difference between a Pell Grant and a student loan

A Pell Grant is a gift of money that you do not repay. A student loan is borrowed money that you must repay with interest, usually beginning after you graduate or drop below half-time enrollment. The interest rate on federal student loans is set by Congress and changes yearly.

Many students receive both a Pell Grant and loans as part of their financial aid package. The grant covers part of the cost, and loans cover the rest. Because grants do not require repayment, they are generally preferable to loans, but they also cover less money. The maximum Pell Grant for 2024–2025 is $7,395, while federal student loans allow much higher borrowing limits.

What happens to your Pell Grant if you change schools

Your Pell Grant follows you if you transfer to another school. You do not lose the money or start over. However, the amount you receive in the next term may change because the new school's cost of attendance may be different. A more expensive school might result in a larger grant; a less expensive school might result in a smaller one.

You must complete a new FAFSA or update your existing one to reflect your new school. Your new school's financial aid office will use that information to calculate your grant for the upcoming term. The semesters you used at your previous school still count toward your 12-semester lifetime limit.

Frequently Asked Questions

Do I have to repay a Pell Grant if I drop out or fail a class?

You do not have to repay a Pell Grant under any circumstances — it is a gift, not a loan. However, if you withdraw from school partway through a term, your school may be required to return a portion of the grant to the Department of Education based on federal regulations. Ask your financial aid office about the withdrawal policy before you leave.

Can I receive a Pell Grant if my parents make a lot of money?

It depends on your family size, your parents' income, and their assets. The FAFSA formula considers all of these. Families with higher incomes typically have a higher Expected Family Contribution, which reduces or eliminates Pell Grant may be able to access. The only way to know is to complete the FAFSA — there is no income cutoff that automatically disqualifies you.

What if I am a part-time student?

You can receive a Pell Grant as a part-time student, but the amount is reduced based on how many credits you take. A student taking half the normal course load receives roughly half the grant. Your school determines what counts as part-time versus full-time enrollment.

Can I use a Pell Grant at any college?

You can use a Pell Grant at any college or university that participates in the federal student aid program, which includes most accredited institutions. You cannot use it at schools that do not participate in federal aid programs, though very few schools fall into this category. Your school's financial aid office can confirm participation.

What happens to unused Pell Grant money?

If your Pell Grant exceeds the cost of tuition and fees at your school, the school sends you the remaining balance. You can use this money for books, supplies, room and board, transportation, or other education-related expenses. Some schools hold the money in a student account; others send it to you directly.