The Federal Pell Grant Program is a need-based financial aid program to help low-income undergraduate and postbaccalaureate students access higher education. Unlike loans, Pell Grants do not need to be repaid. The grant amount varies depending on factors such as financial need, school costs, enrollment status, and the length of the academic year. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply. Pell Grants are awarded through participating institutions, and the funds are distributed directly to students, typically on a semester or academic year basis.
Purpose
You must complete the Free Application for Federal Student Aid (FAFSA) to receive a Pell Grant.
Quick Facts about Pell Grants:
A Federal Pell Grant, unlike a loan, does not require repayment.
For the 2015–16 academic year (July 1, 2015, to June 30, 2016), the maximum Pell Grant amount was $5,775.
The grant amount depends on your financial need, school costs, full-time or part-time enrollment status, and whether you plan to attend for a full academic year or less.
To apply, complete the FAFSA.
CFDA Number: 84.063
Also Known As Pell Grants (formerly Basic Educational Opportunity Grants or BEOGs)
Program Overview
The Federal Pell Grant Program provides need-based financial aid to low-income undergraduate and postbaccalaureate students to help them access higher education. Grants are available at about 5,400 participating postsecondary institutions. The amount a student receives is based on their expected family contribution (EFC), the cost of attendance (determined by the institution), enrollment status (full-time or part-time), and whether they attend for a full academic year or less.
Students can only receive Pell Grant funds from one institution at a time.
Financial need is assessed by the U.S. Department of Education using a standardized formula that evaluates financial data reported on the FAFSA. This formula considers the student’s income (if independent), parents’ income and assets (for dependent students), family size, and family members attending postsecondary institutions. The EFC is calculated using net income and assets percentages, with different allowances for dependent, independent, and independent students with dependents. After submitting the FAFSA, students will receive a Student Aid Report (SAR), or their institution will receive an Institutional Student Information Record (ISIR), which will determine eligibility for the Pell Grant and provide the student’s EFC.
Federal Pell Grants Distribution
Federal Pell Grants are awarded directly through participating institutions to students who demonstrate financial need, have yet to earn a first bachelor's degree, or are enrolled in specific postbaccalaureate programs leading to teacher certification. Schools may distribute Pell Grant funds by crediting the student's school account, issuing a check directly to the student, or combining both methods. Payments must be made at least once per term (semester, trimester, or quarter) or twice per academic year for schools that don’t follow formal terms.
Eligibility
Who Can Apply: Undergraduate and vocational students enrolled or accepted for enrollment at participating institutions may apply.
Eligibility Criteria: Pell Grants are typically only awarded to students without bachelor's or professional degrees.
To qualify, applicants must meet the general federal student aid eligibility requirements.
Funding Status
The funding amounts for Pell Grants have fluctuated over the years, with notable increases to support additional needy students. Below are some key figures for appropriations in recent years:
Fiscal Year 2011: $41,674,180,000
Fiscal Year 2010: $21,772,000,000
Fiscal Year 2009: $19,378,000,000
Fiscal Year 2008: $16,256,000,000
Fiscal Year 2007: $13,660,711,000
Note: These amounts may include funds from other sources, such as mandatory funds and Recovery Act funds.
Awards Information
2011:
Total Amount Available: $35,772,935,000
Number of New Awards Expected: 9,413,000
Average New Award: $3,800
Award Range: $555–$5,550
2010:
Total Amount Available: $32,295,226,000
Number of New Awards Expected: 8,355,000
Average New Award: $3,865
Award Range: $555–$5,550
2009:
Total Amount Available: $25,328,889,000
Number of New Awards Expected: 7,022,000
Average New Award: $3,611
Award Range: $486–$5,350
2008:
Total Amount Available: $16,428,110,000
Number of New Awards Expected: 5,578,000
Average New Award: $2,945
Award Range: $400–$4,731
2007:
Total Amount Available: $13,989,305,000
Number of New Awards Expected: 5,339,000
Average New Award: $2,620
Award Range: $400–$4,310
Legislation, Regulations, and Guidance
Legislation: Higher Education Act of 1965, as amended, Title IV, Part A, Subpart 1; 20 U.S.C. 1070a.
