The Pell Grant, a federal need-based program, could help eligible students save thousands of dollars over the course of your degree program. This guide outlines what you need to know about the Pell Grant, how to apply and how much you could receive.
What is the federal Pell Grant?
The Pell Grant is a federal financial aid program for college students who have demonstrated financial need. It does not typically need to be repaid.
The grant was created in 1972, named for Senator Claiborne Pell of Rhode Island, the chief sponsor of the program. Senator Pell was also responsible for the National Endowment for the Arts and Humanities and the High-Speed Ground Transportation Act, which led to the formation of Amtrak.
Who is eligible?
You may be eligible for the Pell Grant if you meet the following criteria:
- You must have demonstrated financial need
- You're an undergraduate student pursuing your first bachelor's degree
- You're attending a participating college, university or other institution
- You're a U.S. Citizen or eligible non-citizen
There are some exceptions – for example, students pursuing a postbaccalaureate teacher certification program may be eligible.
How do you apply for the Pell Grant?
To apply for the Pell Grant, you need to complete the Free Application for Federal Student Aid (FAFSA) each year you're in college. You will receive your Student Aid Index (SAI) once your application is processed – a number between -1500 and 999999. The lower your number, the higher your demonstrated financial need.
Colleges will then use your SAI to determine your financial aid package, which may include the Pell Grant. Most students receive financial aid award letters in spring.
How much do you receive through the federal Pell Grant?
For the 2026-27 academic year, the maximum Pell Grant award is $7,395. However, you may only receive a partial amount. How much you receive depends on certain factors, such as:
- SAI: The more demonstrated financial need you have, the larger your Pell Grant will likely be.
- Enrollment status: Full-time students typically stand to receive larger Pell Grants than part-time students.
- College's cost of attendance (COA): You can only receive up to the total COA minus other forms of financial aid (not including federal student loans). For example, if you're attending a $50,000-a-year college but received a $48,000 scholarship, you may only receive $2,000 from the Pell Grant, even if you were eligible for the full amount otherwise.
- Satisfactory academic progress (SAP): Poor grades can bring down your enrollment status and affect your Pell Grant eligibility.
Your financial aid offer will detail how much of the Pell Grant you're eligible for and how it will be split between the semesters. If you accept, the federal government sends the money directly to your college. The school will put the Pell Grant towards your tuition, fees and room and board first.
What happens to unused Pell Grant money and is it taxable?
If there is any money remaining, the cash will be sent to you through direct deposit or check to be used for other education-related expenses.
It's important to keep in mind that Pell Grant funds are not taxable income. However, if you withdraw from a course or change enrollment status after the award has been given, there could be tax implications, or you may be asked to repay your award. The bursar's office at your college may have further information for you.
Next steps
The Pell Grant, student loans, and other forms of financial aid can help make college a reality. Visit the Student Hub to explore all of your paying for college options.