The Pell Grant is the largest federal need-based grant program, providing aid to eligible undergraduate students. The program is funded by the Federal government but administered independently by each college financial aid office.
The Pell Grant is named after Senator Claiborne Pell of Rhode Island, who was instrumental in establishing it under President Lyndon B. Johnson’s education legislation, the Higher Education Act of 1965.
It provides awards primarily to low-income undergraduate students. In truth, the grant’s for low- or moderate-income families. When a family has multiple kids in college at the same time, they can have an income above the national average and still be Pell Grant-eligible.
Who is eligible for a Pell Grant?
In addition to having significant demonstrated financial need, to receive a Pell Grant, you need to be a US citizen or an eligible noncitizen who has not yet received a bachelor’s, graduate, or professional degree. Graduate students are not typically eligible for Pell Grants. However, in some cases, they may be eligible if they are seeking a postbaccalaureate teacher certificate.
It is also worth noting the per the studentaid.gov website, students can’t receive a Pell Grant if they are incarcerated in a federal or state prison or are subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense. To sum it up. most incarcerations and convictions for sex crimes and drug crimes will mean the loss of Pell Grant eligibility.
It is worth noting that in December of 2020 congress passed legislation that will result in eligibility changes beginning in 2023-24 academic year. At that time Pell Grant eligibility will be restored to students who are incarcerated. This legislation will also restore federal aid eligibility for students with drug-related convictions.
How much aid can I get?
Federal Pell Grant awards range from a few hundred dollars a year to a maximum award of $6,495 for the 2021–22 award year (July 1, 2021, to June 30, 2022). Amounts can change from year to year.
The exact amount of money each student receives depends on:
- their Expected Family Contribution (EFC), which is determined by completing the Free Application for Federal Student Aid (FAFSA)
- the cost of tuition, fees, and books at their school
- whether the student attends full-time or part-time
- whether they plan to attend school for a full academic year or less
How do I apply for a Pell Grant?
To receive a Pell Grant, you must fill out Free Application for Federal Student Aid (FAFSA) which through its calculation of your EFC, will help determine your eligibility to receive the grant from the Department of Education.
If you qualify for a Pell Grant, you’ll receive an award letter from your college’s financial aid office notifying you.
When do I apply?
Students and their parents can complete the FAFSA as early as October 1. However, eligible students will not receive the Pell Grant until the following school year.
Students technically have until June 30 of the aid year for which they are applying to complete the FAFSA. For example, you can complete the FAFSA for the 2021-2022 school year as early as October 1, 2020, and as late as June 30, 2022.
That said, students should be sure to fill out the FAFSA sooner rather than later for a few reasons.
- Applying early will help ensure that your Pell Grant, as well as any other financial aid for which you are eligible, will be ready and available to help you as soon as school starts.
- Some states and colleges have deadlines for when you need to complete the FAFSA in order to be considered for certain scholarships.
- Some states and colleges have certain types of first-come, first-served financial aid options, such as work-study or certain scholarships that are awarded based on your FAFSA.
You can go here to see a list of state deadlines. It is also a good idea to contact the college(s) you are considering attending to see what deadlines they might have.
Pell Grant Aid Disbursement (How do you receive the Pell Grant award)
If you are eligible for a Pell Grant, then it will be disbursed directly by your college’s financial aid office and transferred into your student account once all necessary steps have been completed. Once paid to your student account the Pell award will automatically be applied to tuition, fees, (if you live on campus) room and board, and any other expenses you may have that are payable directly to the college. Any money that is left over is paid to the student to help with other education expenses.
Generally speaking, colleges will typically give out your grant or loan money in at least two payments, which are referred to as disbursements. At most schools, you should get your grant or loan money at least once per term.
How can I use the Pell Grant?
As mentioned earlier Pell Grants can be used for tuition, fees, on-campus room and board, books, and supplies.
Plus, in situations where there is money left over after the expenses owed to the school are paid for, you can also use these remaining funds to pay for certain living expenses–such as off-campus rent, food, and transportation–in addition to using them to help out with the cost of books and supplies.
Do I ever have to repay a Pell Grant?
Unlike student loans, Federal Pell Grants typically don’t have to be repaid. However, there are some very specific circumstances where students may be asked to repay all or part of their grant.
Click here to learn more about situations where a person might have to repay a federal grant.
What should I do to maintain the Pell Grant eligibility from one year to the next?
To maintain Pell Grant eligibility, a student must be enrolled in a qualified degree seeking program on at least a half-time basis. In addition, they must be making Satisfactory Academic Progress as outlined by their institution and the US Department of Education. Students also need to apply for financial aid every year to recertify their eligibility.
It is also important to note that you can only receive Pell Grant awards for up to 12 semesters or six years. So making sure that you are completing the requirements for your degree in a timely fashion before becoming ineligible to receive further Pell Grants is important.
Final Thoughts
Here is some food for thought… The 2016 National Postsecondary Student Aid Study announced that over 2 million students who would have qualified for the Pell Grant in 2015-2016 didn’t complete the FAFSA. That number included 1.2 million students who would have been qualified for the maximum Pell award.
As we discussed earlier the Pell Grant helps students from both low and moderate income families. It is free to apply for so don’t be hesitate to apply.
Here is a link to the FAFSA application.
