Federal Pell Grants: Eligibility, Maximum Amounts & How to Apply

Financial aid comes in many different forms: need-based scholarships, grants, work study, and loans. All these components work together to make attending college an achievable dream for every student. Like scholarships, grants do not have to be repaid, and students can qualify for grants from a variety of sources. The federal and state governments, colleges, and public or private organizations can award grants. Oftentimes, grant money fills the gap between the sticker price of a college and what a family can realistically pay.

What is the Pell Grant and Do You Pay It Back?

Key Definition: A Federal Pell Grant is a form of need-based federal financial aid for undergraduate students that does not need to be repaid.

The Pell Grant is a federally funded grant available to undergraduate students. It is typically awarded to students who demonstrate exceptional need based on their family's ability to pay for college. Students who earn the Pell Grant do not have to pay it back! Historically, the Pell Grant has aimed to help low-income students turn the dream of attending college into a reality. Naturally, in low-socioeconomic circumstances, attending college can seem impossible. The goal of the Pell Grant is to encourage and then provide financial support for students who may have difficulty paying for college. Because of this, the Pell Grant has been responsible for increasing college enrollment and has been attributed to enhancing student retention. When students have the security of financial help, they are more likely to attend – and stay – in college.

Recent Changes to the Pell Grant Program

The Federal Pell Grant Program had a significant update in early 2026 due to the Big Beautiful Law and has now expanded to include students in vocational and trade school programs. The first cohort of students to be affected by all of these changes are high school seniors: Class of 2027.

How Do I Get a Pell Grant?

Students can reach Pell Grant eligibility the same way they would any other form of financial aid: by filling out the Free Application for Federal Student Aid (FAFSA). It is recommended that students complete the FAFSA as soon as possible, given that financial aid is distributed on a first-come, first-served basis. However, the FAFSA has an 18-month application cycle and can be submitted as late as June 30 of the following year, when it is released. The FAFSA will ask about both the student's and parents' financial circumstances and use that information to determine the Student Aid Index (SAI). A combination of income and assets, family size, Federal poverty guidelines, and state of residence is used to determine the Pell Grant amount a student will get. Once the SAI is determined, the student will receive a FAFSA Submission Summary or the school will receive an Institutional Student Information Record (ISIR). The FAFSA Submission Summary will provide the student with an estimate of their Federal Student Aid awards, including their estimated Pell Grant total. It's important to complete the FAFSA every year, as financial circumstances can change annually. Students can appeal their financial aid award package if their financial circumstances change substantially after filing the FAFSA.

How Much Money Can You Get From a Pell Grant?

For the 2026-27 academic year, the maximum Pell Grant award is $7,395, with a minimum award of $740. The exact amount you receive depends on your family’s SAI, cost of attendance (COA), and enrollment status. However, a student can only receive the maximum Pell Grant award for six years. The Pell Grant can be disbursed to a student in many ways. Students can choose whether their Grant goes directly toward their tuition bill, as a personal check, or a combination of both methods.

What Expenses Do Pell Grants Cover?

Finally, Pell Grants can help to cover student expenses such as:

Tuition and fees

Books, supplies, transportation, and personal expenses

Living expenses, like room and board

Dependent care (i.e., daycare) for a student with dependents

If you have a question about whether your Pell Grant covers a specific aspect of your education, talk to a financial aid administrator at your school. In fact, if you have any questions about the Pell Grant, your financial aid office should be your first point of contact. They can walk you through the application process via the FAFSA, help you best allocate your Pell Grant funds, and provide advice as you navigate the program through your college years.