What a Federal Pell Grant Is and How It Differs From a Loan

A Federal Pell Grant is money from the U.S. Department of Education that does not have to be repaid. Unlike a student loan, you never pay it back — not after graduation, not ever. The grant goes directly to your school to cover tuition, fees, and room and board, or the school sends it to you if your costs are lower than the grant amount.

The maximum Pell Grant amount changes each year. For the 2024–2025 school year, the maximum is $7,395, though the actual amount you receive depends on your financial situation, how much your school costs, and whether you attend full-time or part-time. Schools determine your award using information you provide on the Free process for Federal Student Aid (FAFSA).

Pell Grants are available only to undergraduate students. Graduate students, professional students (such as those in law or medical school), and students pursuing a second bachelor's degree do not receive Pell Grants, though they may be able to access other federal aid.

Key Takeaways

  • A Pell Grant is federal money you do not repay, sent to your school to cover education costs.
  • The amount you receive depends on your family's financial situation, your school's cost, and your enrollment status (full-time or part-time).
  • You must complete the FAFSA each year you want to receive a Pell Grant, even if your situation has not changed.
  • You can receive a Pell Grant for up to 12 semesters or the equivalent, and only while pursuing your first bachelor's degree.

Income and Asset Limits for Pell Grant may be able to access

The Department of Education does not publish a specific income cutoff for Pell Grants. Instead, it uses a formula called the Expected Family Contribution (EFC), now called the Student Aid Index (SAI). Your SAI is calculated from information on your FAFSA: your income, your parents' income (if you are a dependent), assets, family size, and number of family members in college.

Generally, students from families earning under $60,000 per year receive the maximum or near-maximum grant. Students from families earning more than $60,000 may still receive a Pell Grant if their family size is large, if multiple siblings are in college, or if they have significant expenses. A student from a family earning $100,000 might receive a partial grant; a student from a family earning $200,000 typically would not.

The exact cutoff varies year to year because the formula and maximum grant amount change. Your school's financial aid office can tell you whether your SAI makes you may be able to access based on current rules.

How to Submit the FAFSA and Receive Your Grant

To receive a Pell Grant, you must complete the FAFSA at fafsa.gov. The form opens October 1 each year and remains open through June 30 of the following year. You will need your Social Security number, date of birth, and driver's license number (if you have one). If you are a dependent student, you will also need one parent's information.

After you submit the FAFSA, the Department of Education sends your SAI to your school. Your school's financial aid office then calculates your Pell Grant award based on your SAI, the school's cost of attendance, and whether you are enrolled full-time or part-time. The school notifies you of your award, usually by email or through its student portal.

The grant money goes to your school first. The school applies it to tuition and fees. If money remains after those charges are paid, the school either credits your student account (for room and board or other costs) or sends you a refund check, depending on your school's policy. Some schools send refunds by mail; others deposit them into a student account you can access online.

Pell Grant Amounts Based on Enrollment Status and School Type

The amount of your Pell Grant depends partly on whether you attend full-time or part-time. A full-time student (enrolled in at least 12 credit hours per semester) receives the full award amount. A three-quarter-time student (9 to 11 credit hours) receives 75 percent of the award. A half-time student (6 to 8 credit hours) receives 50 percent. A less-than-half-time student receives 25 percent.

Your school type also affects the calculation. Public universities, private nonprofit colleges, and for-profit schools all participate in the Pell Grant program. The grant amount is the same regardless of school type, but your school's cost of attendance (tuition plus living expenses) determines how much of your maximum grant you actually receive. A student at a $10,000-per-year school might receive the full maximum grant; a student at a $60,000-per-year school might receive only a portion of the maximum because the school's cost is so much higher.

Lifetime Limits and Losing Pell Grant may be able to access

You can receive a Pell Grant for a maximum of 12 semesters (or the equivalent in quarters or other terms) during your lifetime. Once you reach 12 semesters of Pell Grant funding, you cannot receive another Pell Grant, even if you change schools or return to school years later.

You also lose Pell Grant may be able to access if you earn a bachelor's degree. The grant is for undergraduate study only. If you complete a bachelor's degree and later return to pursue a second bachelor's degree, you are not may be able to access for a Pell Grant for that second degree.

You may lose your grant temporarily if you do not make satisfactory academic progress. Schools define this differently, but it typically means earning a minimum grade point average (usually 2.0) and completing a minimum number of credits each semester. If you fall below your school's standard, you lose Pell Grant funding until you meet the standard again. Your school's financial aid office can tell you what satisfactory progress means at your institution.

How Pell Grants Combine With Other Aid

A Pell Grant is often part of a larger financial aid package. Your school may also offer you federal student loans (which you repay), work-study (a part-time job), and institutional aid (money from the school itself). Your school's financial aid office combines all these sources into one aid package and sends it to you together.

If your Pell Grant and other aid exceed your school's cost of attendance, you receive a refund. If your aid falls short, you have a gap. Some students fill gaps with private student loans or by working more hours. Others adjust their enrollment (taking fewer credits to lower their cost) or transfer to a less expensive school.

Pell Grants do not affect your may be able to access for other federal aid. You can receive a Pell Grant and federal student loans in the same year. You can also receive a Pell Grant and a scholarship from your school or a private organization.

Frequently Asked Questions

Do I have to reapply for a Pell Grant every year?

Yes. You must complete the FAFSA each year you want to receive a Pell Grant, even if nothing in your financial situation has changed. Your school uses the new FAFSA information to recalculate your award each year. If you do not submit the FAFSA, you will not receive a grant that year.

What happens to my Pell Grant if I drop out or take a leave of absence?

If you withdraw from school partway through a semester, your school may be required to return some of your Pell Grant to the Department of Education. The amount returned depends on how long you were enrolled and your school's refund policy. Talk to your financial aid office before you withdraw so you understand what will happen to your aid and whether you will owe money back.

Can I use a Pell Grant at any college or university?

Pell Grants can be used at any school that participates in the federal student aid program, including public universities, private nonprofit colleges, and for-profit schools. Your school must be accredited and certified by the Department of Education. Most colleges and universities meet these requirements, but some do not. Your school's financial aid office can confirm it participates.

What if my family's income increases after I submit the FAFSA?

Your Pell Grant for that year is based on the income you reported on the FAFSA. If your income increases after you submit it, your grant amount does not change for that year. However, when you submit the FAFSA for the next year, the higher income will be reflected, and your grant may be smaller or eliminated.

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

No. Pell Grants are available only to U.S. citizens and may be able to access noncitizens (such as permanent residents with a green card). You must provide your Social Security number on the FAFSA to receive a Pell Grant. If you are an international student, you may be able to access other forms of aid through your school, but not federal Pell Grants.