What the Federal Pell Grant is

The Federal Pell Grant is money the U.S. Department of Education gives to undergraduate students who have financial need. Unlike a loan, you do not have to pay it back. The grant goes directly to your school, which applies it to tuition, fees, and other costs. Any leftover money is usually sent to you.

The amount you receive depends on your financial need, the cost of attendance at your school, whether you are a full-time or part-time student, and how long you will be in school during the year. For the 2024–2025 academic year, the maximum Pell Grant is $7,395, though this amount changes each year based on federal funding.

You must be a U.S. citizen, national, or may be able to access non-citizen to receive a Pell Grant. You also need a high school diploma, GED, or completion of an approved homeschool program. You cannot have a bachelor's degree already.

Key Takeaways

  • The Pell Grant is federal money for undergraduate students with financial need that does not require repayment.
  • Your school calculates how much you receive based on your Expected Family Contribution (EFC), now called the Student Aid Index (SAI), and the cost of attendance.
  • You must complete the Free Application for Federal Student Aid (FAFSA) to be considered for a Pell Grant.
  • The maximum grant amount changes yearly; for 2024–2025 it is $7,395, but most students receive less.
  • You can receive a Pell Grant for up to 12 semesters or the equivalent, and you must maintain satisfactory academic progress.

How the amount is calculated

Your school's financial aid office uses a formula to determine your Pell Grant amount. They start with your Student Aid Index (SAI), which replaced the Expected Family Contribution (EFC) in 2023. The SAI is calculated from information you provide on the FAFSA and reflects what you and your family are expected to contribute toward education costs.

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

If you attend part-time, your grant is reduced proportionally. A student taking half the normal course load receives half the grant. If you change schools mid-year, your grant may be split between institutions.

How to receive a Pell Grant

You must complete the Free Application for Federal Student Aid (FAFSA) to be considered. The FAFSA opens October 1 each year and remains open through June 30. You provide information about your income, assets, family size, and other circumstances. The form is submitted to the U.S. Department of Education, which calculates your SAI and sends it to schools you list.

After you submit the FAFSA, your school's financial aid office reviews your information and determines your Pell Grant amount. They send you a financial aid offer that shows all aid you may receive, including the Pell Grant. You do not need to do anything else to accept the grant—your school applies it automatically unless you decline it.

The money typically reaches your school before each semester begins. Your school pays tuition and fees first, then sends any remaining balance to you, usually by check, direct deposit, or a student account credit.

Limits on how long you can receive a Pell Grant

You can receive a Pell Grant for a maximum of 12 semesters or the equivalent (roughly six years of full-time study). This limit includes time spent at any school. If you have already used Pell Grant funds at another institution, those semesters count toward your total.

You must also maintain Satisfactory Academic Progress (SAP) to keep your grant. SAP means you are passing your classes and making progress toward your degree at a pace your school sets. If you fall below SAP, your school will notify you and you may lose your Pell Grant until you meet the standard again.

If you have already earned a bachelor's degree, you cannot receive a Pell Grant for undergraduate study. You may be able to receive a grant if you are working toward a second bachelor's degree, but only if you have not already used 12 semesters of Pell funding.

What the Pell Grant covers and does not cover

The Pell Grant can be used for any education-related expense your school includes in the Cost of Attendance: tuition, fees, room and board, books, supplies, equipment, transportation, and dependent care. Your school determines what counts as an allowable expense.

The grant does not cover expenses outside the COA, such as personal entertainment, travel home, or debt repayment. If you receive more grant money than your school's costs, the excess is paid to you as a refund, and you can use it for other education-related needs, though the school does not may provide this use.

Pell Grant and other financial aid

A Pell Grant is often combined with other aid. You may also receive federal loans, work-study, state grants, or institutional aid from your school. Your total aid from all sources cannot exceed your Cost of Attendance.

If you receive a Pell Grant and other aid that together exceed your school's costs, your school must reduce your aid. Usually, loans are reduced first, then grants. Some schools reduce the Pell Grant itself if total aid is too high, though this is less common.

If you receive a Pell Grant and then withdraw from school, you may have to return part of the money. Federal law requires schools to recalculate how much aid you earned based on how long you attended. If you leave early, you may owe money back.

Frequently Asked Questions

Do I have to repay a Pell Grant?

No. A Pell Grant is a gift and does not require repayment under any circumstances. If you see a notice saying you owe money back, it may be because you withdrew from school early or because you were paid incorrectly. Contact your school's financial aid office to clarify.

What happens to my Pell Grant if I change schools?

Your Pell Grant follows you. When you enroll at a new school, submit a new FAFSA or update your school list on your existing FAFSA. Your new school will receive your SAI and calculate a new grant amount based on its Cost of Attendance. Any unused grant funds from your previous school are forfeited.

Can I receive a Pell Grant if my family makes too much money?

There is no income cutoff for a Pell Grant. Your family's income is one factor in calculating your SAI, but high income does not automatically disqualify you. If your school's Cost of Attendance is very high, you may still have financial need. Submit the FAFSA to find out.

What if I do not complete the FAFSA by the deadline?

The FAFSA remains open through June 30, but your school may have an earlier priority deadline. If you miss your school's deadline, you may still be considered, but you could receive less aid if funds are limited. Contact your school's financial aid office about late submission.

Can I use a Pell Grant for graduate school?

No. Pell Grants are only for undergraduate students. Graduate students may be may be able to access for other federal aid, such as Graduate PLUS Loans or Graduate Assistantships, but not Pell Grants. Check with your graduate school's financial aid office about options.