What Is a Pell Grant?

Access thousands of exclusive scholarships
for free

Award$25,124
Deadline7 days left to apply
Create Free Bold.org Account
In this article

What exactly is a Pell Grant, and why is it important? Students from all backgrounds can benefit from exceptional financial aid that is accessible during their college education. One of the best options in financial aid programs is the Pell Grant, also known as the Federal Pell Grant. This grant (meaning that you do not have to pay it back) has helped millions of students pursue their educational goals without excessive student debt.

In this article, we will explore all the details of Pell Grants, giving you a complete understanding of how to get this free money to support your education.

For more resources on financial aid for college, create a free account on Bold.org to gain access to helpful insights, exclusive scholarships, and more!

Get Matched to Thousands of Scholarships

Create your Bold.org profile to access thousands of exclusive scholarships, available only on Bold.org.

Create Free Profile

What Are Pell Grants?

The Pell Grant is the largest federal grant program offered to undergraduates and is designed to assist students from low-income households.

Unlike loans, Pell Grants do not require repayment, making them a valuable resource for students seeking financial assistance. They are awarded based on the applicant's financial need, effectively reducing the burden of student debt.

Eligibility Criteria

To qualify for a Pell Grant, undergraduate students must demonstrate significant financial necessity to attend school and meet specific eligibility requirements. This may include factors such as student enrollment in an eligible college degree or certificate program and maintaining satisfactory academic progress.

These factors will determine the award year of Pell Grant funds each student will be eligible to receive each academic year.

Do you want to learn more about how to cover college costs? Check out this article on full-ride scholarships. Make sure to also check out our exclusive scholarship opportunities!

how to apply for a pell grant

How to Apply for a Pell Grant

The Free Application for Federal Student Aid (FAFSA) is the first thing to complete if a student wants to be eligible for federal Pell Grant funds. You can go to the official FAFSA website to complete the form and check all the necessary information.

The Crucial Role of FAFSA

Submitting the FAFSA form early is important for students aiming to secure federal Pell Grants. These grants are awarded on a first-come, first-served basis, and early submission increases the likelihood of receiving the maximum possible award.

Many financial aid officers and states use FAFSA information to assess eligibility for their own aid programs, making it essential for comprehensive financial assistance.

Step-by-Step Guide to Pell Grant Application

  1. Prepare Required Documents: Before starting the FAFSA, gather necessary documents such as social security numbers, tax returns, W-2s, and other records of income.
  2. Create an FSA ID: Both the student and one parent (if applicable) need to create separate FSA IDs to sign the FAFSA electronically.
  3. Fill Out the Form: Complete the FAFSA form online, ensuring accurate and up-to-date financial information.
  4. Review and Submit: Double-check all entries before submission to avoid errors or delays in processing.
  5. Follow Up: After submission, monitor the application’s status and respond promptly to any requests for additional information.

Tips for Successful Submission

  • We encourage them to submit the FAFSA form as soon as possible (after October 1st of each academic year) to maximize their chances of securing a federal Pell Grant.
  • Make sure to review your documents (Accuracy is Key) to avoid potential penalties.
  • Provide all required information and ensure that your FAFSA form is complete before submission to avoid delays in processing.
pell grants to help pay for college

Cracking the Code: How the Amounts of Money Given Are Determined

Up until the beginning of the 2024-25 award year, Pell Grants were calculated based on financial need and family contribution; Now, they are calculated using the Student Aid Index (SAI).

Student Aid Index (SAI) and Pell Grant Eligibility

Student Aid Index is an eligibility index number utilized by your college to assess the amount of federal student aid you would be entitled to receive upon enrollment at the institution. This number is calculated from the information that you provide on your FAFSA® form.

A student may qualify for a Pell Grant in one of three ways:

  • Maximum Pell Grant of $7,395 (Max Pell)
  • Minimum Pell Grant of $740 (Min Pell)
  • Calculated Pell Grant, based on SAI (Calculated Pell = Max Pell minus SAI)

Remember: The SAI stands for Student Aid Index, and the exact amount is usually updated yearly. It's a calculation used to determine Pell Grant eligibility based on the information provided on the FAFSA form.

Receiving a Pell Grant: The Guide

Once a student's eligibility for a Pell Grant is confirmed, the process of receiving the funds begins with selecting an accredited institution or college offering more than one school with eligible undergraduate programs.

Disbursement of Funds

Upon enrollment, the school's financial aid office disburses the Pell Grant funds and other federal aid into your student account. You may be eligible for a Pell award, which can cover various educational expenses within the Cost of Attendance (COA) of the chosen degree program.

The flexibility to use the Pell Grant aid allows to utilize the funds for tuition, books, living expenses, and other costs related to pursuing their education within the COA parameters. This assists in easing the financial burden associated with attending a degree program.

Additional Federal Financial Aid Options: Types of Loans

Subsidized Federal Loans

Subsidized loans are low-interest borrowed money awarded based on financial need. The defining feature of subsidized loans is that the federal government covers the interest on the loan while the student is in school at least half-time, during the grace period after leaving school, and during any periods of deferment.

Unsubsidized Federal Loans

Unsubsidized loans, on the other hand, are available to a wider range of students regardless of financial need. Unlike subsidized loans, interest accrues on unsubsidized loans from the time the loan is disbursed until it is paid in full. Students have the option to pay the interest (also low) while in school or defer the payments until after leaving their high school diploma behind.

Private Loans

In addition to federal loans, students may also consider private loans to cover college expenses. Unlike federal loans, which are funded by the government, private loans are offered by banks, credit unions, and other financial institutions. While private loans can provide flexibility, it's important to understand their terms and conditions.

Private loans typically have variable interest rates, which means the rate may change over time, impacting the total amount repaid. Additionally, private loans may require a credit check or a cosigner, such as a parent or guardian, especially for students with limited credit history or income.

Before opting for a private loan, students should carefully review the interest rates, repayment terms, and fees associated with different lenders.

checking eliginility criteria

Eligibility Criteria: U.S. Citizenship vs Non-Citizenship Status

To be eligible to receive a Pell Grant, you must meet certain criteria regarding U.S. citizenship or non-citizenship status. Here's what you need to know:

  • U.S. citizens are generally eligible for Pell Grants.
  • Eligible non-citizens include permanent residents with a Green Card, certain refugees and asylees, and individuals with specific humanitarian statuses.
  • Undocumented students or international students without eligible noncitizen status are not eligible for federal financial aid programs such as Pell Grants.

It's important to note that eligibility requirements can vary and may be subject to change. To determine your specific eligibility, it's advisable to consult the official guidelines provided by the the department of education U.S. Department of Education or speak with a financial aid advisor at your educational institution.

Frequently Asked Questions About the Pell Grant?

What is the maximum Pell Grant award?

A Pell Grant is a form of financial aid provided by the federal government to undergraduate students from low-income households to help cover the costs of their college education. Unlike loans, Pell Grants do not need to be repaid, making them a valuable resource for students seeking assistance in funding their education.

Can I receive a Federal Pell Grant if I attend college part-time?

Yes, part-time students are eligible for Pell Grants; however, the amount awarded per part-time student award year will be prorated based on their enrollment status and the number of credit hours they are taking for the full academic year.

Is the Federal Pell Grant program available for graduate students?

No, the Pell Grant is only available to undergraduate students who have a bachelor's degree or graduate or professional not yet earned a bachelor's, graduate or professional degree.

At Bold.org, we offer numerous scholarships to students of all types! Be sure to sign up for a Bold account today to apply! Check out the Scholarship Blog for more articles like this one.