A Federal Pell Grant is a subsidy provided by the U.S. federal government to help students pay for college. It is a need-based grant, meaning it is awarded to students who demonstrate exceptional financial need and have not earned a bachelors, graduate, or professional degree. The grant was originally known as the Basic Educational Opportunity Grant and was renamed in 1980 in honor of Democratic U.S. Senator Claiborne Pell of Rhode Island.
Some key features of the Federal Pell Grant include:
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Amount: The maximum Federal Pell Grant award for the 2022-23 award year is $6,895. The amount of the grant depends on the students financial need, costs to attend school, status as a full-time or part-time student, and plans to attend school for a full academic year or less.
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Eligibility: To be eligible for a Pell Grant, a student must complete the Free Application for Federal Student Aid (FAFSA) and demonstrate exceptional financial need. The U.S. Department of Education determines the students Expected Family Contribution (EFC) by evaluating financial information reported on the FAFSA.
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Duration: Students can receive Pell Grants for up to 12 semesters, or approximately six years.
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Repayment: Unlike loans, Pell Grants do not have to be repaid.
The Federal Pell Grant program is administered by the United States Department of Education, which determines the students financial need and through it, the students Pell eligibility. Students may use their grants at any one of approximately 5,400 participating postsecondary institutions. The grant helps about 5.4 million full-time and part-time college and vocational school students nationally.
To apply for a Pell Grant, students must complete the FAFSA. The FAFSA becomes available on October 1 each year, and it is recommended to submit it as soon as possible.
