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

A Pell Grant is a federal award that pays toward your college or career school costs. Unlike a loan, you do not repay it. The U.S. Department of Education sends the money to your school, and your school applies it to tuition, fees, room, board, or other education expenses. The amount you receive depends on your financial need, the cost of your school, and whether you are a full-time or part-time student.

Pell Grants are available only to undergraduate students and students in certain certificate programs. Graduate students cannot receive them. The maximum grant amount changes each year — it was $7,395 for the 2023–24 school year, but Congress sets this amount annually, so it varies.

You do not apply for a Pell Grant directly. Instead, you complete the Free Application for Federal Student Aid (FAFSA), which is submitted to the Department of Education. Your school's financial aid office then determines whether you meet the income and other requirements, calculates how much you need, and tells you the grant amount you will receive.

Key Takeaways

  • Pell Grants are federal money for college that does not require repayment, and the amount depends on your family's income and your school's cost.
  • You must complete the FAFSA to be considered; your school's financial aid office determines your award amount based on federal formulas.
  • Pell Grants are available only to undergraduate and certain certificate students, not graduate students.
  • The money goes to your school first, which applies it to your bill, and any leftover amount may be paid to you directly.
  • You can receive a Pell Grant for up to 12 semesters or the equivalent, though this limit may change.

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; have a valid Social Security number; be enrolled or accepted for enrollment as an undergraduate or in an may be able to access certificate program; and demonstrate financial need. Your school must be an accredited institution that participates in federal student aid programs.

Financial need is calculated by subtracting your Expected Family Contribution (EFC) — now called the Student Aid Index (SAI) — from your school's cost of attendance. If your SAI is higher than your school's cost, you will not receive a grant. If you have already earned a bachelor's degree, you cannot receive a Pell Grant, even if you are pursuing a certificate or second undergraduate degree.

Some students are ineligible for other reasons: if you are in default on a federal student loan, owe a refund on a federal grant, or have a drug conviction on your record, you may be denied. Your school's financial aid office can tell you whether any of these situations apply to you.

How the FAFSA determines your grant amount

The FAFSA collects information about your family's income, assets, household size, and number of family members in college. The Department of Education uses a federal formula to calculate your Student Aid Index (SAI). This number represents how much your family is expected to contribute toward your education.

Your school then subtracts your SAI from its cost of attendance to find your financial need. If your need is greater than zero, you may receive a Pell Grant. The grant amount is the smaller of your financial need or the maximum grant amount set by Congress for that year. If your financial need is $3,000 but the maximum grant is $7,395, you receive $3,000. If your need is $10,000 but the maximum is $7,395, you receive $7,395.

Your school's cost of attendance includes tuition, fees, room and board (if you live on campus), books, supplies, transportation, and personal expenses. Schools that cost more do not automatically award larger grants — the grant is based on your financial need, not the school's price tag.

How the money reaches you

Your school receives the Pell Grant funds from the Department of Education and applies them to your account first. The school deducts tuition, fees, and other charges you owe, then pays any remaining balance to you. This payment usually happens at the start of each semester or term.

If you receive more grant money than you owe the school — for example, if your grant covers tuition and fees but you live off campus and have no room and board charges — the school must pay you the difference. You can use this money for other education-related costs like books, transportation, or living expenses. Some schools mail a check; others deposit the money into your student account or a linked bank account.

If you withdraw from school partway through the term, your school may be required to return some or all of your Pell Grant funds to the Department of Education, depending on how much of the term you completed. Ask your financial aid office about the school's refund policy before you withdraw.

Pell Grant limits and how long you can receive one

You can receive a Pell Grant for a maximum of 12 semesters or the equivalent (for example, four academic years of three semesters each). This is called your Pell Grant may be able to access period. Once you reach 12 semesters, you cannot receive another Pell Grant, even if you have not yet earned a degree.

The 12-semester limit applies across all schools you attend. If you received a Pell Grant for two years at one college and then transfer to another school, you have only eight semesters of may be able to access remaining. Your school's financial aid office tracks how many semesters you have used and can tell you how many you have left.

If you are a part-time student, your grant amount is reduced based on how many credits you take. A student taking half-time courses receives half the grant amount. The semesters still count toward your 12-semester limit, so part-time enrollment extends how long you can receive grants but does not increase the total amount you can receive over your lifetime.

Pell Grants versus other federal student aid

Pell Grants are one type of federal student aid. Federal student loans — such as Direct Subsidized Loans and Direct Unsubsidized Loans — are money you borrow and must repay with interest. Federal Work-Study is a program that pays you for part-time work while you are in school. PLUS Loans are federal loans for parents or graduate students.

Your school's financial aid package may include a combination of grants, loans, and work-study. Grants and work-study do not require repayment, but loans do. If your financial need is not fully met by your Pell Grant, your school may offer you loans to cover the remaining cost. You can accept or decline any loan offered to you.

Some states and schools also offer their own grants based on financial need or other criteria. These are separate from the federal Pell Grant. Your financial aid office can explain what other aid you may be offered and how it combines with your Pell Grant.

What happens if your family income changes

Your Pell Grant amount is based on the income information you reported on the FAFSA. If your family's financial situation changes significantly during the school year — such as a job loss, death, or major medical expense — your school's financial aid office may recalculate your aid. This is called a professional judgment review.

Contact your financial aid office to explain the change and ask whether they can adjust your aid. They may ask for documentation such as a termination letter, death certificate, or medical bills. If they approve the review, your Pell Grant amount may increase. However, they cannot increase it above the maximum set by Congress for that year.

If your family's income increases, your Pell Grant amount may decrease or disappear entirely. You will not owe back any grant money you already received, but your award for the next term may be lower. Your school will notify you of any changes to your aid.

Frequently Asked Questions

Do I have to repay a Pell Grant?

No. A Pell Grant is a gift of federal money that does not require repayment. You keep the money even if you leave school or do not complete your degree. However, if you withdraw early in a term, your school may return some of the grant to the Department of Education.

Can I receive a Pell Grant if I am not a U.S. citizen?

You can receive a Pell Grant if you are a U.S. citizen, national, or may be able to access noncitizen. may be able to access noncitizens include permanent residents (green card holders) and certain other visa holders. Undocumented immigrants are not may be able to access. Your school's financial aid office can tell you whether your immigration status qualifies.

What if I do not complete the FAFSA correctly?

If you make a mistake on the FAFSA, you can correct it through your FAFSA account online. Changes you make are sent to your school and the Department of Education. Your school will recalculate your aid based on the corrected information. Contact your financial aid office if you are unsure whether your FAFSA is correct.

Can I use my Pell Grant at any college?

Your Pell Grant can be used only at schools that are accredited and participate in federal student aid programs. Most colleges and universities may have access to, but some schools — particularly online-only or for-profit institutions — may not. Your school's financial aid office can confirm whether it is may be able to access before you enroll.

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

If you received a Pell Grant in error or your school determined you were not actually may be able to access, you may owe a refund. You cannot receive a new Pell Grant until you repay what you owe or make a repayment arrangement with the Department of Education. Contact your school's financial aid office or the Federal Student Aid office to set up a payment plan.