The government gives out billions of dollars in aid each year, some of that going toward students who received the Federal Pell Grant. But what is it? And how does it work?
What is the Pell Grant?
The Pell Grant is one of many federal grants the government provides to help students pay for their college expenses.
Who is Eligible for the Pell Grant?
Usually, undergraduate college students who demonstrate financial need are eligible for this grant. You can’t have already earned a bachelor’s degree or higher. However, in some cases, students working toward a post-baccalaureate degree in teaching may still be eligible to receive the Pell Grant. Talk to your school’s financial aid office for more information on this.
Other factors such as your enrollment status and how long you’re going to be in school also determine your eligibility.
How Much is a Pell Grant?
The full amount of the Pell Grant currently is $6495. This amount is subject to change each school year, but it’s usually around $6000. Keep in mind, though, that the amount you will receive will depend on both your cost of attendance (COA) and your estimated family contribution (EFC). The lowest you’ll ever receive is 10% of the full amount, so about $650 based on the current numbers. In special cases, students whose parent(s) or guardian(s) died in military service in Iraq or Afghanistan after 9/11 may be able to receive more money. Check with your school’s financial aid office for more information if you think this applies to you.
Do You Have to Pay Back the Pell Grant?
Generally, no. Since it’s a grant, you won’t have to pay it back. There are some exceptions to that rule:
If You Drop Out
Some students receive the Pell Grant to help them pursue a certain program. If this is your case and you end up dropping out, then you’d have to repay.
If Your Financial Need Changes
Receiving other scholarships and grants after accepting the Pell Grant reduces your need for financial aid. In that case, you might have to pay back any money that was already given to you.
If Your Enrollment Status Changes
If you switch from full-time to part-time, that would also be grounds for having to repay the grant money.
Don’t worry too much about this though. If you do have to repay the grant, your school will notify you. From there, you’ll have 45 days to either pay it back in full or enter into a repayment arrangement.
How and When to Apply for a Pell Grant
To be able to receive a Pell Grant, fill out the FAFSA form as soon as it’s available. Be sure to repeat this every year you’re in school to continue to receive the grant.
Pell Grant Disbursement
Usually, your college will receive your grant funds. They’ll automatically apply them to any school-related costs you have. You’ll receive any leftover money in payments called disbursements. Schools are required to give out at least two grant disbursements per year. Most schools typically do this once per term.
Another important detail is that the funds can only be used toward one school. For example, if you’re dually enrolled, you’ll only be able to use the money to help pay for the costs of one of the schools.
Additionally, you can only receive the Pell Grant for 12 terms or until you receive a bachelor’s degree. Your Pell lifetime eligibility used, or LEU, determines how many terms you have left. You can check this by logging into your Financial Student Aid account and going to the My Aid tab.
Other Federal Educational Grants
There are other educational grants that are a part of federal student aid. Here’s a quick overview of them:
Federal Supplemental Educational Opportunity Grant (FSEOG)
This grant is usually awarded to undergraduate students who have exceptional financial need and have not earned a bachelor’s degree or higher. The award amount can range anywhere from $100 to $4000 a year. It is important to note that not all schools participate in this. If your school does, they’ll only receive a set amount of money to give out to eligible students. Pell Grant recipients have first priority to receive the money. Because of this, be sure to fill out your FAFSA as soon as it’s available.
Iraq and Afghanistan Service Grant
This grant is usually available to students whose parent or guardian was a part of the U.S. Armed Forces and died as a result of military service in Iraq or Afghanistan after 9/11. You must have been either under 24 years of age or enrolled in college at least part-time at the time of their death. You also must be ineligible to receive the Pell Grant on the basis of your EFC. You do, however, have to meet the rest of the requirements for a Pell Grant. Because of the Budget Control Act of 2011, the award amount is currently about $6124 for grants disbursed between October 1, 2021, and October 1, 2022. Normally, the maximum award amount is the same as the Pell Grant.
Teacher Education Assistance for College and Higher Education Grant (TEACH)
This is usually for undergraduate, post baccalaureate, or graduate students who are enrolled in a TEACH Grant-eligible program. You have to agree to teach in a high-need field for 4 years at an elementary or secondary school that serves low-income students. Typically, you have to complete this service within 8 years of finishing your program. Failure to do so will turn your grant into a direct unsubsidized loan. As a result of the Budget Control Act of 2011, the current award amount is about $3772 for grants disbursed between October 1, 2021, and October 1, 2022. Normally, the grant can provide up to $4000 per year.
All of the grant awards are subject to change each year.
Final Thoughts from the Nest
A Pell Grant is a great way to get money for school, especially if you’re in a tough financial situation. The best part is you most likely won’t have to pay it back. So, be sure to fill out the FAFSA as early as you can to increase your chances of getting some stress-free money.