Loans Student Loans Financial Aid How To Apply for a Pell Grant Pell Grants can help cover college expenses if you qualify By Elyssa Kirkham Elyssa Kirkham Twitter Elyssa Kirkham is an expert on student loans and student loan issues. A personal finance journalist for nearly a decade, she covers consumer credit in addition to her specialization in education debt and financing. She holds a B.A. from Brigham Young University, Idaho. learn about our editorial policies Updated on September 28, 2022 Reviewed by Cierra Murry Reviewed by Cierra Murry Cierra Murry is an expert in banking, credit cards, investing, loans, mortgages, and real estate. She is a banking consultant, loan signing agent, and arbitrator with more than 15 years of experience in financial analysis, underwriting, loan documentation, loan review, banking compliance, and credit risk management. learn about our financial review board Fact checked by Lars Peterson Fact checked by Lars Peterson Website Lars Peterson is a veteran personal finance writer and editor with broad experience covering personal finance, particularly credit cards, banking products, and mortgages. He has been writing and editing for more than 20 years and has a knack for digging deep into a subject so he can make it easier for others to understand. As an editor for The Balance, he has assigned, edited, and fact-checked hundreds of articles. learn about our editorial policies In This Article View All In This Article What Is a Pell Grant? Qualifying for a Pell Grant How To Apply Using Pell Grant Funds Pell Grant Limitations Other Funding Options Frequently Asked Questions (FAQs) Photo: Tom Werner / Getty Images For college students considering financial aid options, the best place to start is with gift aid, or aid that doesn’t have to be repaid—typically, scholarships and grants. One common source of gift aid is the Federal Pell Grant program. Here’s what you need to know about Pell Grants, including if you qualify, how to apply, and how to maintain eligibility. Key Takeaways A Federal Pell Grant is a need-based financial aid award of up to $6,895 per year.To apply for a Pell Grant, fill out a FAFSA. If you qualify, your grant funds will be forwarded to your school, and included with your financial aid package.You can continue to receive Pell Grants for up to six years, or 12 academic terms. What Is a Pell Grant? A Pell Grant is gift aid paid out by the federal government through the Federal Pell Grant Program. This program helps millions of students afford higher education each year. In 2021, 6.2 million students received Pell Grant funds. In 2020, the number was 6.7 million students. Unlike student loans, Pell Grant funds don’t need to be repaid. For the 2022–23 school year, eligible students can receive up to $6,895 in Pell Grant funds. These grants are also need-based aid, which means that college students must demonstrate “exceptional financial need” to qualify. Note If eligible, you can receive a Pell Grant each academic year for up to six years (12 total school terms, or the equivalent). Qualifying for a Pell Grant Pell Grants are a great help to college students, but students must meet certain eligibility requirements to receive them. First, Pell Grants are awarded only to undergraduate students and students in certain post-baccalaureate teaching certification programs. Graduate students are ineligible for Pell Grants. You’ll also need to meet other general requirements for federal student aid, including making satisfactory academic progress, according to the school you attend. Second, you must submit a Free Application for Federal Student Aid (FAFSA) to access federal student aid, including Pell Grants. The government uses information from the FAFSA to determine if students meet its definition of “financial need” to qualify for Pell Grant funds. Note The calculation of financial need is based on a combination of your income and savings, your cost of attendance, and your enrollment status. How To Apply Visit FAFSA.ed.gov to create an FSA ID account (if you don’t already have one) and complete the FAFSA application online. If you prefer to mail in the application, you can print the application from the FAFSA site or request a copy from your guidance counselor or financial aid officer. If you are under the age of 24 and considered a dependent on the FAFSA, your parents need to complete a portion of the application providing their financial information. You must file a FAFSA renewal each year to recertify your eligibility for student aid, including Pell Grants. FAFSA submissions open on October 1 for the following school year. Each college and state has its own deadline for FAFSA submissions, which is typically months before the fall semester of the academic year you’re applying for aid. The federal deadline for FAFSA submissions is June 30 after the school year for which you need aid. Note File the FAFSA as soon as possible since some aid is available on a first-come-first-served basis and may be depleted. After your application is submitted and processed, you and any colleges you listed on the FAFSA will receive a Student Aid Report (SAR) with your expected family contribution (EFC). Using Pell Grant Funds Your college uses your FAFSA information to put together a student aid award letter or package, which outlines the aid types and amounts awarded to you. If you qualify for a Pell Grant, it should be included. The final step is to follow your school’s instructions for accepting aid. Pell Grant funds are sent directly to your college—most schools divide this grant into two disbursements (usually once per semester). Your college will apply your Pell Grant funds first toward outstanding tuition or fees that you owe. The remaining funds are then paid directly to you. Pell Grant Limitations If you receive Pell Grants, use them wisely, and be sure to maintain eligibility for future aid. One requirement for financial aid is satisfactory academic progress, which is determined by your school. If your progress isn’t considered satisfactory (if you fail too many classes, for example), you could lose financial aid funds, including a Pell Grant you’d otherwise be eligible for. Since you can only receive up to 12 semesters or six years of Pell Grant awards, keeping your studies on track will ensure you finish your degree before becoming ineligible for further Pell Grants. Note If you drop out during a semester for which you were given a Pell Grant or if you switch from full-time to part-time enrollment, you might be required to pay back a portion or all of the money that you received. Other Funding Options There are other options to help you pay for school if grants won’t cover the full cost or if you don't qualify for a Pell Grant. Apply for federal work-study programsCheck for state student aid or student loan programsLook for scholarships offered through your college and private scholarshipsGet a part-time job to help cover some of your expensesConsider supplementing gift aid with student loans Paying for college can look like putting together a patchwork of funds from many sources. Using gift aid like Pell Grants and scholarships first can help you avoid taking on student debt that could be a financial burden in the future. It can take effort to search and apply for funds, but it’s worth it. Frequently Asked Questions (FAQs) Do you pay back a Pell Grant? As long as you continue in school, and continue to make progress, you do no have to repay a Pell Grant. However, if you withdraw from your academic program, change from full-time to part-time enrollment, receive scholarships or other funding that change your financial eligibility for a grant, or other reasons, you may have to repay your Pell Grant. What makes me eligible for a Pell Grant? Pell Grants are need-based awards. In general, if your FAFSA application demonstrates that the cost of attendance at your chosen school is greater than your expected family contribution, then there is financial need. You must also be an undergraduate student and not have already earned a professional degree. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Department of Education. "Federal Student Aid Annual Report FY 2021," Page 17. U.S. Department of Education. "Fiscal Year 2020 Annual Report: Federal Student Aid," Page 19. Federal Student Aid. "Federal Pell Grants Are Usually Awarded Only to Undergraduate Students." Federal Student Aid. "FAFSA Deadlines." Federal Financial Aid. "Federal Grants Are Money To Help Pay for College or Career School."