What Is a Pell Grant and How Do You Qualify?

The Federal Pell Grant is the largest need-based grant program offered by the U.S. Department of Education. Created in 1972, this program has helped millions of undergraduate students pay for college, career school, or trade school. Unlike federal student loans, Pell Grants are considered gift aid—you receive the money, use it for educational expenses, and under normal circumstances, you never have to pay it back.

Your Pell Grant can cover tuition, fees, books, supplies, and even living expenses at any eligible institution—including community colleges, four-year universities, career schools, trade schools, and online programs. The grant is paid directly to your school, which applies it to your account. If there’s money left over after tuition and fees, you’ll receive the remainder to help with other expenses.

For the 2025-26 award year, the maximum Pell Grant is $7,395. Your actual award depends on your financial need, enrollment status (full-time or part-time), cost of attendance, and whether you attend for a full academic year.

Pell Grant eligibility isn’t based solely on income. The federal government considers multiple factors, including your family size, tax filing status, assets, and how your income compares to federal poverty guidelines. Many students assume they won’t qualify and never apply—don’t make this mistake.
To be eligible, you must be an undergraduate student who hasn’t earned a bachelor’s, graduate, or professional degree. You must demonstrate financial need based on the information you provide on the FAFSA. You also need to be a U.S. citizen or eligible noncitizen, have a valid Social Security number, and be enrolled or accepted at an eligible institution.

Your eligibility is determined by your Student Aid Index (SAI), which replaced the Expected Family Contribution (EFC) starting in 2024-25. The SAI measures your family’s financial strength using information from your FAFSA. Students with an SAI at or below zero automatically qualify for the maximum Pell Grant. Those with higher SAIs may still qualify for partial awards.

The new FAFSA formula expanded eligibility by basing maximum Pell Grant qualification on federal poverty guidelines. Single parents with income up to 225% of the poverty line, or two-parent households with income up to 175% of the poverty line, may qualify for maximum awards. For a family of four in 2025, the 175% poverty threshold is approximately $56,263.

You cannot apply for a Pell Grant separately. The only application is the Free Application for Federal Student Aid (FAFSA), which determines your eligibility for all federal student aid, including Pell Grants, federal loans, and work-study programs. Many states and colleges also use FAFSA information to award their own grants and scholarships.

The 2025-26 FAFSA became available in late 2024 and uses your 2023 tax information. The federal deadline is June 30, 2026, but you should apply much earlier—many states and schools have deadlines as early as October or February. File as soon as possible after the FAFSA opens because some aid is awarded on a first-come, first-served basis.

Before starting your FAFSA, create an FSA ID account at studentaid.gov. If you’re a dependent student, your parent(s) will also need their own FSA ID to provide consent for IRS data transfer. The new FAFSA uses direct data sharing with the IRS, which simplifies the process but requires consent from all contributors.

After submitting your FAFSA, you’ll receive a FAFSA Submission Summary within a few days. This summary shows your SAI and estimates your Pell Grant eligibility. Schools you listed on your FAFSA will receive your information and send you financial aid offers—this is where you’ll see your actual Pell Grant award.

The amount of your Pell Grant isn’t one-size-fits-all. The federal government uses a formula that considers multiple factors to calculate your individual award. Understanding this calculation helps you plan your education financing.

Your Student Aid Index (SAI) is the primary factor. Students with an SAI of zero or below receive the maximum Pell Grant. If your SAI is above zero but below twice the maximum Pell Grant amount (approximately $14,790 for 2025-26), your scheduled Pell Grant is calculated by subtracting your SAI from the maximum award.

Enrollment status significantly impacts your award. Full-time students (typically 12+ credits) receive 100% of their calculated Pell Grant. Three-quarter-time students (9-11 credits) receive 75%, half-time students (6-8 credits) receive 50%, and less-than-half-time students receive a prorated amount. Your cost of attendance at your specific school also factors in—if your school’s costs are lower than the maximum Pell Grant, your award may be limited to your cost of attendance.

Here’s good news: the “Year-Round Pell” provision allows eligible students to receive up to 150% of their annual Pell Grant award if they attend an additional term (like summer) within the same award year. For example, if your annual Pell Grant is $5,000, you could receive up to $7,500 total if you attend fall, spring, and summer terms.

Federal law limits your total Pell Grant eligibility to the equivalent of 12 semesters, or approximately six years of full-time enrollment. The Department of Education tracks this using your Lifetime Eligibility Used (LEU) percentage.

Each year you receive a full Pell Grant counts as 100% toward your lifetime limit. If you attend part-time or receive a partial award, only that percentage counts against your limit. For example, receiving 50% of your scheduled Pell Grant uses 50% of one year’s eligibility. Once you reach 600% LEU, you can no longer receive Pell Grants.

Your years of Pell Grant eligibility don’t need to be consecutive. If you started college, left for several years, and returned, you can still receive Pell Grants as long as you haven’t exceeded the 600% limit. You can check your current LEU by logging into studentaid.gov and viewing your account dashboard under “My Aid.” You can also increase your LEU by 50% for one year.

This six-year limit is typically enough time for most students to complete an undergraduate degree. However, if you’ve changed majors multiple times, attended part-time, or taken breaks from school, you should monitor your LEU carefully to ensure you don’t run out of eligibility before graduating.

While Pell Grants normally don’t require repayment, certain circumstances can turn your grant into a debt you must repay. Understanding these situations helps you avoid unexpected bills.

The most common reason for repayment is withdrawing from school before completing 60% of the semester. Federal “Return of Title IV Funds” (R2T4) regulations require schools to calculate how much aid you “earned” based on the percentage of the term you completed. If you withdraw at the 40% point, you’ve only earned 40% of your Pell Grant—the remaining 60% must be returned, with up to 50% of that amount being your personal responsibility.

Changing your enrollment status mid-semester can also trigger repayment. If you were awarded a Pell Grant based on full-time enrollment but drop to part-time status after classes begin, your school must recalculate your award. The difference between what you received and what you’re now eligible for may need to be returned.

Receiving a Pell Grant from multiple schools simultaneously, or receiving grant funds when you’re not actually enrolled, creates an overpayment situation that requires full repayment. Your school will notify you of any repayment obligation, and you’ll have 45 days to either repay or make arrangements.
Failing to repay an overpayment has serious consequences—you’ll lose eligibility for all federal student aid until the debt is resolved, and the amount may be referred to the U.S. Department of Education for collection.

Your Pell Grant goes further at some schools than others. At many community colleges, the maximum Pell Grant covers most or all of tuition and fees, leaving money for books and living expenses. At expensive four-year universities, the same grant covers a smaller percentage of costs. Consider starting at a community college and transferring to maximize your Pell Grant value.

Some colleges have “Pell Grant match” programs that cover any remaining tuition and fees after your Pell Grant is applied. These schools essentially provide free tuition for Pell-eligible students. Research whether the schools you’re considering offer such programs—it could mean graduating debt-free.
Take advantage of Year-Round Pell if your schedule allows. Attending summer term lets you receive up to 150% of your annual Pell Grant while potentially finishing your degree faster. Accelerating graduation also means using less of your lifetime eligibility.

Maintain at least half-time enrollment to receive Pell funds. If life circumstances force you to drop below half-time, you can still receive a prorated Pell Grant, but your award will be significantly reduced. Plan your course load carefully to maintain the enrollment status that best supports your financial needs.

Finally, complete your FAFSA every single year—even if your family’s financial situation hasn’t changed. Pell Grant amounts and eligibility thresholds can change annually, and you must file a new FAFSA each year to receive any federal aid.