In 2019, the average cost of attendance for U.S. universities was practically pocket change — only $14,307. Ouch. In the words of Lizzo: I’m way too fine to be this stressed (by fines)!
From housing to meal plans to course materials, it’s no secret that college is expensive. For students who want to deck out their dorm rooms and participate in student programs like Greek life, their cost of attendance has an even higher price tag. To top it off, tuition keeps rising — and inflation isn’t expected to slow down any time soon.
How do students make the grade without breaking the bank? Applying for the Pell Grant is the first step for many students seeking financial aid. In this article, we’ll cover what the Pell Grant is, who’s eligible, how to apply, and how much aid you can expect from it.
What is the Pell Grant?
The Pell Grant is the largest federal financial aid program for undergraduate students. It’s need-based financial aid, meaning that its eligibility requirements are determined by your expected family contribution, whereas many scholarships are awarded based on satisfactory academic progress and accomplishments.
The Federal Pell Grant program minimizes the cost of attendance for students with exceptional financial need by helping to cover school costs including tuition, fees, and housing. It’s usually the foundation of a student’s financial aid, and scholarships and loans help students cover more of their school costs. Unlike loans, the federal Pell Grant award doesn’t require repayment.
The Pell Grant has been awarded to undergraduate students since the first award year in 1973 when the U.S. Department of Education coughed up federal funds for financial aid. In the 1980–1981 academic year, 2.7 million students received the Pell Grant. That number has grown to 6.1 million recipients in the 2021–2022 school year — and you could be one of the future eligible students.
How much is the Pell Grant?
If you are one of the millions of undergraduate students who qualify for the Pell Grant, how much aid can you expect?
The grant award amount a student receives largely depends on their Expected Family Contribution (EFC). This number is an estimate of the amount the student’s guardians can contribute toward their secondary education. A university’s cost of attendance also plays a factor.
The maximum Federal Pell Grant award amount in the 2022–2023 academic year was $6,895. For 2023–2024, the maximum was increased to $7,395 with a minimum of $750. The exact award amount changes depending on whether you’re enrolled as a full-time or part-time student. The Federal Pell Grant Program Payment Schedule helps students determine their award amount based on their enrollment status, EFC, and cost of attendance.
How far a student’s Pell Grant money goes depends on their institution. Because the cost of attendance varies widely between individual community colleges and four-year universities, students have to compare colleges to find the institutions that fit within their budget.
Pell Grant Requirements: What you need to qualify
Now comes the big question: how do you qualify for this federal grant? Let’s walk through the requirements.
Fill out the Free Application for Federal Student Aid (FAFSA®)
To find out if they qualify for the Pell Grant, students must submit the FAFSA: the Free Application for Federal Student Aid. Using the information in the FAFSA, the U.S. Department of Education calculates each student’s EFC and determines if they’re eligible.
For a student to be eligible for the Pell Grant in the 2023 –2024 academic year, their EFC can’t be more than $6,656.
Be an undergraduate student
The Pell Grant is only given to undergraduate students who haven’t received a bachelor’s degree. These undergraduate students must be U.S. citizens or eligible noncitizens. Also, students can’t get Pell Grant funds for more than one school at a time — so no double dipping!
If you’re someone who loves higher education and wants a graduate degree (or another bachelor’s degree), you won’t qualify for Pell Grant eligibility. But there’s always an exception to every rule, and students enrolled in a post-baccalaureate teacher certification program could still qualify for the grant.
What can disqualify you from receiving the Pell Grant?
Just because a student initially qualifies for the Pell Grant doesn’t mean that their eligibility can’t change.
First, students applying for the Pell Grant have to sign a statement promising to only use the funds for educational expenses, that they haven’t defaulted on payments for federal student loans, and that they don’t owe any repayments for federal education grants. Breaking these rules means losing your Pell Grant.
While C’s might get degrees, the Pell Grant has GPA requirements decided by each university. If a student isn’t making satisfactory academic progress, they can be disqualified from the Pell Grant.
There’s also the grant’s lifetime eligibility to consider, which is a limit on the number of Pell Grants a student can get over their lifetime. Federal Pell Grant funds are restricted to 12 semesters or six years.
The good news is that students enrolled in summer courses can receive the year-round Pell Grant as long as they haven’t hit the limit for lifetime eligibility. Because of this rule, within a single year, students can get a maximum of 150% of their scheduled Pell Grant funding.
In some cases, students are required to repay their Pell Grant. Repayment could be required if a student withdraws from courses and goes from a full-time student to a part-time student.
For questions about your ongoing eligibility for the federal Pell Grant program, turn to your school’s financial aid office.
How do you apply for the Pell Grant?
To apply for the Pell Grant, students have to fill out the FAFSA form. The FAFSA must be completed every year you’re in school to keep your eligibility for federal student aid.
This means that students that don’t attend schools with fixed-rate tuition need to keep up with their university’s updated cost of attendance. Submitting the yearly FAFSA also requires students to know their family’s changing financial information that could alter their EFC and therefore their eligibility.
Even if you don’t initially qualify for the Pell Grant, it’s important to keep applying for the FAFSA in case you do become eligible. Otherwise, you’ll risk losing out on federal financial aid that could make a big difference in your college experience.
When is the deadline to apply for the Pell Grant?
As Douglas Adams once said in The Salmon of Doubt, “I love deadlines. I like the whooshing sound they make as they go by.” He probably would’ve missed the FAFSA deadline, which for 2024 is June 30.
Be aware that the FAFSA isn’t just used for the Pell Grant. States and colleges use it for their own financial aid programs. Because these funds are limited, if you want a piece of the pie, you have to make the deadline!
How do you receive Pell Grant funds?
The Pell Grant payday depends on how you choose to receive your disbursements, or payments. You can choose to apply the funds to your school costs, be paid directly, or use a combination of both.
In most cases, universities award grant funds in two disbursements. These disbursements are usually given once per term. Disbursements are typically first applied towards tuition fees, then room and board. If any funds are left over (lucky you!), they’re released directly to the student to put towards additional education expenses.
Need help finding the best school for you? Use College Rover
If you’re a student researching which college will pay off the most, College Rover is here to help. Our college comparison tool, resources, and degree program finder makes the college search easy so you can focus on what’s important — deciding which classes to put your grant money toward!
