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The Pell Grant, the largest federal grant program, offers funding for undergraduate students with exceptional financial need. Eligibility is determined annually based on the Free Application for Federal Student Aid (FAFSA®), and students can receive the grant for up to six years of full-time study. The maximum award amount changes every year. For the 2025-26 school year, the maximum Pell Grant is $7,395.
The amount you can receive depends on several factors, including your family’s income and assets, the cost of attendance at your school, and your enrollment status. Here’s a closer look at how the Pell Grant works and how it compares other forms of financial aid.
Key Points
• The Pell Grant is a type of financial aid for undergraduate students that doesn’t require repayment.
• Eligibility criteria includes having exceptional financial need and enrollment in an eligible program.
• You apply for the Pell Grant by filling out the FAFSA annually.
• Pell Grant funds can be used to cover tuition, books, and living expenses.
• Other forms of financial aid include state and institutional grants, scholarships, federal student loans, and work-study.
Applying for a Pell Grant
To apply for a Pell Grant, you must complete the FAFSA at studentaid.gov. This is the primary form used by colleges to determine a student’s eligibility for federal aid programs, including the Pell Grant.
Pell Grant Eligibility Requirements
The Pell Grant has strict eligibility requirements. These include:
Financial Need
Pell Grants are awarded to individuals who demonstrate exceptional financial need. There are no official income limits, but award amounts are determined by several factors, including your Student Aid Index (SAI), the cost of attendance at your chosen school, and whether you’re enrolled full- or part-time.
Undergraduate Status
Pell Grants are generally only awarded to undergraduate students. However, there may be some exceptions for students enrolled in post-baccalaureate teacher certification programs.
Meeting General Eligibility Requirements
To qualify for a Pell Grant, students must also meet the general eligibility requirements for all federal financial aid programs, which include:
• Being a U.S. citizen or eligible noncitizen
• Having a valid Social Security number
• Having a high school diploma or equivalent (like a GED)
• Being accepted for or enrolled in an eligible degree or certificate program
💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.
How Do Pell Grants Work?
After submitting your FAFSA, the Department of Education determines your Student Aid Index (SAI), a number that measures your financial need, and sends this information to your school. If you are an undergraduate student with exceptional financial need, you may qualify for this grant funding.
Each school that participates in the federal Pell Grant program receives enough funding annually to fully cover Pell Grant awards to all eligible students. That means that if you qualify, you’ll receive your full eligible amount.
Students typically receive 100% of their annual Pell Grant split evenly between the fall and spring semesters. However, you can also receive a “year-round Pell,” which allows students who have already received their full award for the fall and spring to receive up to an additional 50% for an extra semester (e.g.,summer).
Understanding the Student Aid Index (SAI)
The Student Aid Index (SAI) is a measure that determines your eligibility for need-based federal financial aid, including the Pell Grant. Your SAI is not the amount you will have to pay, but simply a number used by schools to allocate aid.
Your SAI is calculated based on the financial information you (and any other contributors) reported on your FAFSA, including your family’s income and assets. The SAI ranges from –1,500 to 999,999, with a negative SAI indicating higher financial need. For example, if you have an SAI of –1,500, you’ll generally qualify for a maximum Pell Grant award, according to the Department of Education.
Pell Grant Funding for Military Service in Afghanistan or Iraq
You can qualify for a maximum Pell Grant award regardless of your calculated SAI if:
• You are the child of a parent or guardian who died in the line of duty while either serving on active duty as a member of the U.S. Armed Forces on or after Sept. 11, 2001, or actively serving as and performing the duties of a public safety officer; and
• You are younger than age 33 as of January 1 prior to the award year you’re applying for.
What Sorts of Expenses Can the Pell Grant Be Used For?
The Pell Grant can be used to cover qualified education-related expenses, including:
Tuition
Pell Grant funds can be used to pay for the cost of tuition.
Educational Expenses
You can use your Pell Grant to pay for other education-related expenses, such as the cost of books, lab fees, or other supplies like a graphic calculator or other expenses related to your course of study.
Living Expenses
It’s also possible to use the Pell Grant to pay for living expenses. This could cover room and board at your college or university. Or, if you live off-campus, this could cover the cost of rent and groceries.
Maintaining Eligibility for a Pell Grant
To continue receiving the Pell Grant throughout your college career:
• You must fill out the FAFSA every year.
• You must stay enrolled in your undergraduate program.
• You need to maintain satisfactory academic progress as defined by your school This typically involves maintaining a minimum grade point average (GPA) and completing a certain percentage of the courses attempted.
• You need to stay within the 12-semester lifetime limit – you are no longer eligible to receive a Pell Grant once you have used all 12 terms.
💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.
Pell Grant vs Other Types of Financial Aid
The Pell Grant is one of many different types of financial aid. Here’s a look at some other options available to undergraduates.
Other Federal Grants
In addition to the Pell Grant, the federal government offers several other nonrepayable aid options for students who qualify. These include:
• Federal Supplemental Educational Opportunity Grant (FSEOG): A grant for undergraduate students who demonstrate exceptional financial need, FSEOG offers awards between $100 to $4,000 per year.
• Teacher Education Assistance for College and Higher Education (TEACH) Grant: This grant provides up to $4,000 per year to students who agree to teach in high-need fields in low-income areas for at least four years after graduation.
State Grants and Institutional Aid
Many states and individual colleges offer their own grant and scholarship programs.
• State Grants: A number of states have grant programs for residents attending in-state colleges. Eligibility may be based on financial need, academic merit, or a combination of both. You may automatically be considered for state grants when you complete the FAFSA, but some states require a separate application.
• Institutional Aid: Colleges and universities award their own grants and scholarships, often referred to as institutional aid. This aid may be merit- or need-based. Some schools require a separate financial aid form, like the CSS Profile, in addition to the FAFSA to determine eligibility for institutional aid.
Federal Student Loans
Federal student loans are loans provided by the U.S. government to help students pay for college and must be repaid with interest. They are a key component of financial aid and typically offer more favorable terms compared to private student loans, such as lower fixed interest rates, income-driven repayment, and potential loan forgiveness programs.
Federal student loans can be subsidized or unsubsidized:
• Subsidized Loans: These are available to eligible students who demonstrate financial need. With this type of federal loan, the government pays the interest while the student is in school at least half-time and for six months after graduation.
• Unsubsidized Loans: These are available to eligible students regardless of financial need. Here, the borrower is responsible for paying all the interest, which accrues from the time the loan is first disbursed.
With either type of federal loan, you don’t need to start making payments until six months after you graduate or your enrollment drops below half-time.
Work-Study Jobs
The Federal Work-Study Program provides part-time jobs to students with financial need to help them earn money for education costs. Students typically work on-campus in jobs that often encourage community service or relate to their course of study. The program also emphasizes flexibility to help students balance work with academics. To be eligible, you must file the FAFSA and meet your school’s satisfactory academic progress (SAP) requirements.
When Financial Aid Is Not Enough
If your financial aid package, which may include grants, scholarships, and federal student loans, isn’t sufficient to cover your funding needs, here are some other options to explore.
Private Scholarships
There are thousands of scholarships available to help students pay for college. They may be awarded based on financial need, merit, or a combination of both. Like grants, scholarships usually don’t need to be repaid.
It can take some time to find — and apply — for the right scholarships, so it’s a good idea to start early. To find opportunities, reach out to your high school guidance office or college’s financial aid office. You can also use an online scholarship database to find programs that could be a good fit.
Private Student Loans
Private student loans are offered by banks, credit unions, and online lenders to help students pay for college expenses. Because they are not government-backed, the terms, interest rates, and repayment options are determined by the individual lender and are often based on the borrower’s (or their cosigner’s) credit score and history.
Private lenders typically allow you to borrow up to a college’s full cost of attendance, which gives you more borrowing power than with the federal government. However, these loans may have higher interest rates and don’t offer the same borrower protections that come with federal loans, such as income-driven repayment and forgiveness programs.
The Takeaway
A Pell Grant is an important form of federal financial aid for undergraduates with significant financial need. Pell Grants do not typically have to be repaid and the funds can be used for a wide variety of college expenses. The maximum award for the 2025-26 school year is $7,395.
Other funding options that can help you pay for college include other federal grants, state and institutional grants, federal student loans, scholarships, work-study programs, and private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
What disqualifies you from getting a Pell Grant?
You may be disqualified from receiving a Pell Grant if you don’t demonstrate sufficient financial need, fail to maintain satisfactory academic progress, or already hold a bachelor’s, graduate, or professional degree. Other disqualifiers include defaulting on a federal student loan, owing a refund on a previous federal grant, or not being a U.S. citizen or eligible noncitizen.
Will you ever need to pay back a Pell Grant?
A Pell Grant generally does not need to be repaid. However, there are certain circumstances in which you may need to repay a portion of the grant. This could happen if you withdraw from school before completing the semester or term, you change your enrollment status from full-time to part-time, or your family’s household income increases.
Is there a minimum GPA required for a Pell Grant? Does it have to be maintained for your whole degree?
There is no minimum grade point average (GPA) for initial Pell Grant eligibility, which is determined by financial need through the FAFSA®. However, in order to maintain eligibility for a Pell Grant, you’ll need to make satisfactory academic progress (SAP) toward your degree. The specific requirements will be outlined by your school, but may include a minimum GPA.
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