A Pell Grant is federal money for college that you don't have to repay

A Federal Pell Grant is money the U.S. Department of Education gives to undergraduate students to help pay for college. Unlike a loan, you don't pay it back. The amount you receive depends on your family's financial situation, the cost of the school you attend, and whether you're 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 is left over after those costs are covered, the school sends you the remainder. You can use a Pell Grant at any college or university that participates in federal student aid programs — which includes most accredited schools.

Congress sets the maximum grant amount each year. For the 2024–2025 school year, the maximum is $7,395, but most students receive less. The actual amount depends on your Expected Family Contribution (EFC), which is calculated from information you provide on the Free Application for Federal Student Aid (FAFSA).

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 family's financial situation, school costs, and enrollment status — not on grades or test scores.
  • You must complete the FAFSA each year to be considered, and your school determines how much of the grant you receive.
  • Pell Grants are available only to U.S. citizens or may be able to access non-citizens, and you must maintain satisfactory academic progress to keep receiving funds.

How the amount is calculated

The Department of Education uses a formula to determine how much each student can receive. It starts with the maximum grant amount for that year, then subtracts your Expected Family Contribution (EFC). The EFC is a number that represents how much your family is expected to contribute to your education based on income, assets, family size, and number of family members in college.

If your EFC is very low or zero, you receive the full maximum grant. If your EFC is higher, your grant amount is smaller. The school you attend also affects the amount — a more expensive school may allow you to receive a larger grant than a less expensive one, up to the annual maximum.

Your enrollment status matters too. Full-time students can receive the full amount. Part-time students receive a smaller grant, proportional to how many credits they're taking. If you attend school less than half-time, you may not be may be able to access for a Pell Grant at all.

Who can receive a Pell Grant

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 valid Social Security number and a high school diploma or equivalent (like a GED). You must be enrolled as an undergraduate student in a degree or certificate program at a school that participates in federal student aid.

There is no age limit, and you don't need good grades to receive a Pell Grant — financial need is what matters. However, you must maintain satisfactory academic progress, which means earning passing grades and completing enough credits each term. If you fall below your school's standards for progress, you can lose your grant until you bring your grades back up.

You cannot receive a Pell Grant if you're already enrolled in a graduate or professional program, or if you're taking classes just for personal interest rather than working toward a degree. You also cannot receive a grant for the same academic period from more than one school.

How to apply and when money arrives

You apply for a Pell Grant by completing the FAFSA on the Federal Student Aid website (studentaid.gov). The FAFSA opens October 1 each year and remains open through June 30. You'll need your Social Security number, driver's license or state ID, and tax information from the previous year (or an estimate if you haven't filed taxes yet).

After you submit the FAFSA, the Department of Education processes it and sends you a Student Aid Report (SAR) showing your EFC and estimated grant amount. Your school receives this information and determines your actual Pell Grant amount based on your enrollment status and the school's cost of attendance.

Most schools disburse grant money twice per year — once at the start of each semester. Some schools pay monthly or quarterly. The money typically arrives within a few weeks of the semester start, though timing varies by school. If you're a new student, disbursement may be delayed until your school confirms your enrollment.

What happens if you change schools or leave college

If you transfer to a different school, your Pell Grant transfers with you. You don't need to reapply — your new school will receive your FAFSA information and determine your grant amount based on their cost of attendance. The grant amount may change because different schools have different costs, but your may be able to access remains the same.

If you withdraw from school before the semester ends, you may have to return part of your grant. Federal rules require schools to recalculate how much grant money you've earned based on how long you attended. If you received more than you earned, you owe the difference back to the school or the Department of Education. The exact amount depends on when you withdraw and your school's refund policy.

If you take a semester off and then return, you remain may be able to access for a Pell Grant as long as you reapply through the FAFSA. Your grant amount will be recalculated based on your current financial situation and enrollment status.

Pell Grants versus loans and other aid

The key difference between a Pell Grant and a student loan is that you don't repay a grant. A loan is borrowed money that you must pay back with interest, usually after you graduate or drop below half-time enrollment. A Pell Grant is a gift — once you receive it, it's yours to keep.

Many students receive both a Pell Grant and loans. The grant covers part of the cost, and loans cover the rest. Some students also receive other grants or scholarships from their school, state, or private organizations. Your school's financial aid office can explain how all these types of aid work together in your specific situation.

Work-study is another form of federal aid that differs from a grant. With work-study, you earn money by working on campus, usually for minimum wage or slightly higher. It's not automatic like a grant — you have to find a job and work the hours.

Frequently Asked Questions

Do I lose my Pell Grant if I fail a class?

Not automatically, but failing classes can affect your satisfactory academic progress (SAP). If your GPA or credit completion falls below your school's SAP standards, you lose may be able to access until you improve. Your school will notify you if you're at risk. Talk to your financial aid office about what you need to do to regain may be able to access.

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 Direct Unsubsidized Loans or Graduate PLUS Loans, but not Pell Grants. Check with your graduate school's financial aid office about what aid you may receive.

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

Your Pell Grant amount is based on the FAFSA you submit each year and doesn't change mid-year, even if your family's income changes. However, you can submit a FAFSA correction if your income information was wrong. For the next school year, your new income will be used to recalculate your grant amount.

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

You must be a U.S. citizen, national, or may be able to access non-citizen. may be able to access non-citizens include permanent residents (green card holders) and certain other visa holders. Undocumented immigrants are not may be able to access for federal Pell Grants, though some states offer their own grant programs for undocumented students.

What happens to unused Pell Grant money?

If your grant money is left over after your school pays tuition, fees, and room and board, the school sends you the remainder. You can use it for books, supplies, transportation, or living expenses. Some schools hold the money in a student account; others send a check or deposit it to your bank account.