The Federal Pell Grant is one of the best forms of financial aid because, unlike a loan, you usually do not have to pay it back. Millions of U.S. undergraduate students receive it every year.
Who can get a Pell Grant?
- Undergraduate students who have not earned a bachelor’s degree
- Students who show financial need based on the FAFSA
- U.S. citizens or eligible non-citizens enrolled in an eligible program
In general, students from lower- and moderate-income families are most likely to qualify.
How much can you get?
The maximum award is set by Congress each year. Your actual amount depends on:
- Your Student Aid Index (SAI) from the FAFSA
- Your school’s cost of attendance
- Whether you attend full-time or part-time
- Whether you attend for a full academic year
Check StudentAid.gov for the current maximum award.
How to apply
There is no separate application. Simply file the FAFSA. If you qualify, the Pell Grant will appear in your school’s financial aid offer.
How the money is paid
Your school applies the grant to tuition, fees and, if you live on campus, housing. If money is left over, the school pays it to you to help with other education costs like books and transportation.
Is there a limit?
Yes. You can receive the Pell Grant for up to the equivalent of six years of full-time study (called the Lifetime Eligibility Used limit of 600%).
When you might have to repay it
You may owe part of the grant back if you withdraw from school early in the term or drop to a lower enrollment status. Talk to your financial aid office before dropping classes.
How the Pell Grant fits into your aid package
Your Pell Grant is usually the first piece of your financial aid package. Schools build the rest of your aid around it. After the Pell Grant is applied, the school may add state grants, institutional grants, work-study and federal loans. Because the Pell Grant is awarded first, it often reduces how much you need to borrow.
The Pell Grant can also be combined with other grants and scholarships. However, your total aid cannot be more than your school’s cost of attendance. If you win an outside scholarship, report it to your financial aid office. In many cases the school will reduce loans or work-study first rather than grants.
Enrollment status and your award
The amount you receive depends on how many credits you take. Here is a general idea of how enrollment affects your award:
| Enrollment status | Typical credits per term | Share of full award |
|---|---|---|
| Full-time | 12 or more | 100% |
| Three-quarter time | 9–11 | About 75% |
| Half-time | 6–8 | About 50% |
| Less than half-time | Fewer than 6 | Smaller amount, if eligible |
Your school’s exact definitions may differ, so check with your financial aid office.
Year-round Pell Grants
Eligible students can receive Pell Grant funds for summer classes too, often called year-round Pell. If you are enrolled at least half-time and have already used your award for fall and spring, you may be able to receive up to an extra term of funding. This can help you graduate sooner and reduce total costs.
Workforce Pell Grants
Recent federal legislation expanded Pell eligibility to certain short-term workforce training programs, sometimes called Workforce Pell. These programs are shorter than a traditional degree and focus on in-demand job skills. If you are interested in a certificate program, ask the school whether it qualifies.
Keeping your Pell Grant year after year
- File the FAFSA every year. Eligibility is recalculated each year.
- Maintain Satisfactory Academic Progress. Keep your GPA and completion rate above your school’s minimum.
- Avoid unnecessary withdrawals. Dropping classes can reduce your award or create a repayment.
- Stay within your lifetime limit. Track your usage on StudentAid.gov.
Frequently asked questions
Can graduate students get a Pell Grant?
Generally no. Pell Grants are for undergraduates who have not yet earned a bachelor’s degree, with limited exceptions for certain teacher certification programs.
Do I have to pay taxes on my Pell Grant?
Pell money used for tuition, fees, books and required supplies is generally not taxable. Money used for housing and food may be taxable. Check IRS guidance or ask a tax professional.
Can I use my Pell Grant at any school?
You can use it at any school that participates in the federal student aid programs, which includes most U.S. colleges, universities and many career schools.
What if my family’s income goes up next year?
Your award may be smaller or you may no longer qualify. That is why it is important to file the FAFSA each year and review your new aid offer.
A simple example
Jordan is a full-time freshman at a community college with yearly tuition and fees of about $4,500. Based on his FAFSA, he qualifies for a large Pell Grant. After his tuition is paid, the remaining grant money is sent to him as a refund, which he uses for textbooks, a bus pass and part of his food costs. Because the Pell Grant covers most of his expenses, he does not need to take any student loans in his first year. If he transfers to a four-year university later, his Pell Grant will continue there as long as he stays eligible and has not reached the lifetime limit.
Key takeaways
- The Pell Grant is free money for undergraduates with financial need and usually does not need to be repaid.
- There is no separate application. Filing the FAFSA is all you need to do.
- Your award depends on your SAI, cost of attendance and enrollment status.
- You can receive Pell for up to the equivalent of six full-time years.
- Withdrawing or dropping classes can reduce your award or create a repayment, so talk to the aid office first.
- Year-round Pell may help you take summer classes and graduate sooner.
Where to get help
If you have questions about your Pell Grant, start with your college’s financial aid office. You can also log in to StudentAid.gov to view your grant history and lifetime eligibility used, or call the Federal Student Aid Information Center for free help with the FAFSA.
The bottom line
The Pell Grant is free money for college. File your FAFSA every year to keep receiving it, and stay enrolled to avoid having to repay any portion.