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Pell Grant: Everything You Need to Know
As you look into funding options for college, you’ll notice one of the most ubiquitous sources of student aid to be the Pell Grant. But what is the Pell Grant, and how can it help you? In this guide, we’ll go over who offers the funds, who can receive it, and what it can be used for. We’ll also go over how much you can earn and a whole lot more. Let’s get into it.
At a glance
The Pell Grant is a form of federal need-based aid awarded by the U.S. Department of Education. Students can use these funds towards educational expenses such as tuition, room and board, fees, textbooks, and more. Since it is a grant rather than a loan, students will not have to repay any of the funds from a Pell Grant.
How much is the Pell Grant worth?
The U.S. Department of Education uses the information on your FAFSA to determine your Pell Grant eligibility. Students can be eligible for anywhere between $0 and $6,895 as of the 2022-2023 school year. So, assuming this amount remained constant, and you qualified for the maximum amount every year, it could be worth up to $27,580 over the course of a four-year education.
Am I eligible for the Pell Grant?
Students who are eligible for federal financial aid and enrolled in undergraduate programs in the U.S. can be eligible for the Pell Grant if they show demonstrated financial need. The U.S. Department of Education uses the information on your FAFSA to determine your eligibility. They base their decision on a combination of factors, including your family’s income, expenses, and available assets.
Students with high financial need will receive the maximum amount. Once their assets and income increase, they will slowly start phasing out of the Pell Grant, until they reach a point where they don’t qualify for any of it. The best way to find out your Pell Grant eligibility is to fill out the FAFSA today and see where you stand.
Also see: Pell Grant eligibility: Do I qualify?
Eligibility may fluctuate by year
Remember – the Pell Grant does not renew automatically. You’ll have to fill out the FAFSA every year in order to receive it. If your family’s financial situation changes in your following years of college, your eligibility may change as well. So, you could end up with a higher or lower award.
As a result, you shouldn’t count on your first year grant to be equal to the next three years. Make sure that you plan accordingly in order to cultivate a secure financial situation.
How to apply for the Pell Grant
Applying for the Pell Grant is surprisingly convenient; you won’t have to fill out any additional applications, as you are automatically considered upon completing the FAFSA. So, in order to apply and receive an almost-instant decision regarding your eligibility, all you have to do is fill out the FAFSA.
Even if you are not approaching your first year of college, you can fill out the FAFSA just to get an idea of whether you will be eligible. It is entirely free and the data you receive will be a good predictor of your future results.
How is the Pell Grant distributed?
Typically, the federal government will distribute your Pell Grant directly to the college you are studying at. It will show up on your statement as a credit and no further action will be required. It’s convenient and typically pretty seamless. If you find that the credit on your statement does not match up with your results from the FAFSA, make sure to contact your financial aid office immediately.
Frequently asked questions
Is there a lifetime limit for Pell Grant funds?
Yes. Students can only receive up to twelve terms (roughly six years) of Pell Grant funds. So, rather than a monetary limit, the grant imposes a limit on the total number of dispersals you can receive. Since most students graduate within eight terms, this is not typically an inhibitive limit. But it can affect students who decide to earn a second bachelor’s or dramatically change their field of study.
Can I use the Pell Grant for coding bootcamps?
Unfortunately, students cannot use Pell Grants for coding bootcamps. Since bootcamps are not accredited educational institutions, students cannot use federal funds to pay for them. However, there are a myriad of alternative funding sources to help pay for bootcamps, including income share agreements.
Can I use the Pell Grant for certificate programs?
This can vary on a case-by-case basis, so it’s always best to check with the school who is offering the program to know for sure whether you qualify. Typically, eligible students are also enrolled in undergraduate educations simultaneously.
What is the minimum GPA for a Pell Grant?
The Pell Grant has no minimum GPA; it is a purely need-based grant! That means that as long as you demonstrate need through the FAFSA and have gained admission to a college, you will qualify.
Do I have to reapply for the Pell Grant?
Yes! Every year, you’ll have to fill out the FAFSA again in order to be awarded a Pell Grant for that year of education. Make sure that you fill out the FAFSA before your school’s deadline and the state’s deadline.
Related: What is the FAFSA deadline?
Can I receive a Pell Grant if I go to school out-of-state?
Yes! As long as you are attending school in the United States, you can use a Pell Grant to help fund your education. It doesn’t matter which state you live in or which one you attend school in.
Can I use a Pell Grant to fund my semester abroad?
Typically, you can fund semesters abroad with a Pell Grant. As long as you are still technically enrolled at your college, you can use a Pell Grant to fund your education. However, some students unenroll from their college for the semesters during which they study abroad, and then transfer their credits into their university. If this is the case, you will not be able to use a Pell Grant for that semester.
Does the Pell Grant count as taxable income?
Luckily, the Pell Grant does not count as taxable income! So, you will not have to report it on your taxes and won’t have to pay taxes on any of the money received.