What is a Pell Grant? As a prospective college student, this is one of the most important questions you can ask.
That’s because, depending on factors like your socioeconomic status, the answer to this question may be your ticket to making an expensive college education more affordable.
Unfortunately, far too many students who might benefit from this grant do not know enough about it. In the case of paying for higher education, the old axiom is true: knowledge is power. Because of that, we’ve put together the ultimate guide to Federal Pell Grants.
By the time you’re done with this guide, you’ll know all about one of the easiest and most reliable ways of paying for your college education.
Let’s dive in.
TABLE OF CONTENTS
(click to skip ahead)What is a Pell Grant?
What is a Federal Pell Grant? Simply put, this is a grant provided by the U.S. government to help college students pay for their education. As a grant, it’s typically more attractive to prospective students than other forms of financial aid, especially loans that will need to be paid back.
(There are rare instances in which students have to pay back Pell Grant money—for details on those, head here.)
However, as a federal grant, there are a number of usage restrictions and eligibility requirements. So below, you’ll find more information on what those are and how you can apply for aid. With any luck, this federal grant will soon form the cornerstone of your financial aid package.
What is a Federal Pell Grant used for?
Relative to other forms of financial aid, the Pell Grant is relatively versatile: It can be used to cover various costs, ranging from tuition to other costs of education including textbooks and other school supplies. It can also be used to cover the fees your classes have (for example, technology fees) on top of the cost of tuition.
Pell Grants can also be used to pay for the costs of transportation involved with your education, including the bus fare to take you to campus.
Finally, if you are a parent, the Pell Grant can be used to pay for your dependents’ child care.
Should you have more specific questions about what would or would not be covered in relation to a specific school, we always recommend that you contact their Financial Aid office for the most relevant and up-to-date answers.
What are the eligibility requirements for a Pell Grant?
Generally speaking, this grant is available to students who demonstrate a certain level of financial need determined when you fill out your Free Application for Federal Student Aid (FAFSA)—for a guide to the FAFSA, head here.
For dependent students, the government will use what’s called your Student Aid Index to determine how much they think your parents are able to contribute towards the cost of your college education. This is calculated along with your own income.
If you’re an independent student, then eligibility is based solely on your income (more on this soon).
In most cases, students are eligible for Pell if they haven’t already completed a bachelor’s degree, a graduate degree, or a professional degree. The one exception to this is that Pell may be available to certain applicants who are enrolled in a postbaccalaureate teacher certification program.
Finally, Federal Student Aid reports that those in a federally-approved Prison Education Program and those “subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense” may be eligible.
One key takeaway is that you should always fill out your FAFSA each year. It will open the door to potentially many other forms of aid, and you might not realize you qualify for Pell until you do so!
What is the income limit for a Pell Grant?
The exact income limit for the Pell Grant is subject to change and is determined by the federal government. Typically, this boils down to how much the family makes (for dependents only) and how much the student makes each year in relation to poverty level calculations. As a general rule, though, most Pell Grants are awarded to dependent students whose families make less than $30,000 each year.
Those are the students likely to get the most from this grant. Some money may be available to students whose families make up to $60,000 each year. Generally, it is very difficult to get this award if you or your family make more than $60,000 annually, though it never hurts to fill out the FAFSA each year to explore what your options are.
What is the maximum amount for a Pell Grant?
The maximum amount for a Pell Grant changes over time, with the federal government increasing the amount in order to account for the rising cost of education. For the 2024-2025 year, for example, the maximum amount of Pell a student can receive was $7,395.
With the Pell Grant, how much you receive (and whether you qualify at all) is determined by income level. Some students may receive the full amount, but others (or their families) may make enough money each year that only a partial amount is awarded. Given how expensive tuition has become in many places, students often have to pair the Pell Grant with scholarships and other forms of financial aid to cover the overall cost.
How to apply for a Pell Grant
Applying for the Pell Grant is very easy: All you have to do is complete the FAFSA application online. Any schools that you apply to will automatically consider you for a Pell award based on the financial information you fill out on that form.
Because of that, it’s important (like, extremely important) to fill out the FAFSA each and every year.
If your financial situation changes, you may very well be eligible for an award one year even if you were not eligible the year before. Additionally, your eligibility for other grants, scholarships, and other awards may be contingent on completing the FAFSA, so filling it out annually can help you maximize the aid you receive.
How to maintain a Pell Grant
Once you have a Pell Grant, maintaining it is generally very easy. First and foremost, you will need to complete the FAFSA each year (yes, we’re repeating ourselves—it’s on purpose, because this is so important).
Second, you will need to stay enrolled at a nonforeign school in order to maintain your grant status.
Third, after you complete a Bachelor’s degree or professional degree, you’ll no longer qualify for the Pell Grant.
Finally, keep in mind that Pell can only be awarded for 12 terms. If you’ve received it for those terms and are still not done with your degree, you will not be able to earn any additional Pell money to complete your college education.
What other kinds of Federal and state grants are available?
In addition to the Pell Grant, other federal grants are available, including
The Federal Supplemental Educational Opportunity Grant (FSEOG) grant. It currently pays out up to $4,000 a year to students who haven’t yet completed their degree and who can demonstrate financial need.
And students who are studying to teach elementary or secondary school (at the undergrad, postbaccalaureate, or graduate school level) in high-need areas may be able to receive $4,000 each year through the Teacher Education Assistance for College and Higher Education (TEACH) Grant.
As for state grants, the exact opportunities available depend on the state(s) of the school(s) you are applying to. We’d recommend that you contact the Financial Aid offices of any schools you are interested in as early as possible and ask them about state grant opportunities. Not only will they be able to provide you with a definitive list, but they can more easily answer your follow-up questions and help you apply.
With grants, every little bit helps. And Pell Grants and other federal and state grants are a great way to cover the costs of higher education without landing you in large amounts of post-college debt.
Chris Snellgrove is an English Professor at Northwest Florida State College who
specializes in literature, rhetoric, and business writing. As a freelance writer, Chris specializes in sales, marketing, pop culture, and video games. He has a B.A. in English from Troy University and both an M.A. and Ph.D. in English from Auburn University. When he’s not writing or talking to others about writing, Chris loves reading books, playing video games, watching horror movies, and disappearing into a comic book. He currently lives in Northwest Florida and would probably rather be at the beach right now.
Top values: Diversity / Equality / Social Justice
