Understand Federal Pell Grants

Key takeaways about Federal Pell Grants

• Pell Grants are need-based, not merit-based, so they don’t depend on your grades, test scores, or extracurriculars.
• Federal Student Aid hasn’t yet released the 2027–28 Federal Pell Grant maximum and minimum award amounts. For the 2026–27 award year, the biggest Federal Pell Grant award you can receive is $7,395, and the smallest Federal Pell Grant award you can receive is $740.
• 2027–28 amounts are expected to apply to the award year running July 1, 2027, through June 30, 2028. For 2026–27, Pell Grant amounts are effective July 1, 2026, through June 30, 2027.
• Your actual Pell Grant amount depends on things like your FAFSA^® information, financial situation, enrollment intensity (such as whether you attend full time or part time), and attendance plans for the year. Your school will determine your final Pell Grant eligibility and award amount.
• You need to submit the FAFSA^® each year you’re in school to be considered for federal student aid. To keep receiving federal aid, students still need to meet federal student aid requirements, such as satisfactory academic progress.
• Pell Grants usually don’t need to be repaid, but there are some situations where you may have to repay all or part of the grant.

Federal Pell Grants are a type of federal financial aid that can help pay for college or career school. Unlike student loans, a Federal Pell Grant usually doesn’t have to be paid back.

Pell Grants are generally awarded to undergraduate students with financial need. To find out if you qualify, you’ll need to submit the Free Application for Federal Student Aid (FAFSA^®).

Our FAFSA^® guide can help you prepare and work through the application. You should also check for grants and scholarships from your state, school, and private organizations.

What makes you eligible for a Federal Pell Grant?

Federal Pell Grants are generally available to undergraduate students who show financial need and meet federal student aid eligibility requirements.

You may qualify for a Pell Grant if you:

• Haven’t yet earned a bachelor’s, graduate, or professional degree
• Are enrolled or accepted for enrollment in an eligible degree or certificate program
• Complete the FAFSA^®
• Meet federal student aid eligibility requirements
• Have financial need based on FAFSA^® information

Some students enrolled in post-baccalaureate teacher certification programs may also qualify.

There isn’t one simple income cutoff for a Pell Grant. Eligibility can depend on factors like:

• FAFSA^® information

• Student Aid Index

• Family size and family situation

• State of residence

• Federal poverty guidelines

• Enrollment intensity

• School cost of attendance

Don’t assume you won’t qualify

Many families skip applying for aid because they think their income is too high. Sallie’s “Financial Aid Myth Report” found that 29% of families paying for college skipped applying for federal aid, specifically Pell Grants or federal student loans, because they assumed they wouldn’t qualify. The same report found that 41% of families believed a household income above $100,000 disqualifies students from any financial aid.

That’s a misconception. There’s no income cap to submit the FAFSA^®, and income alone doesn’t determine whether you’ll qualify for aid. The only way to know if you’re eligible for a Pell Grant is to complete the FAFSA^®.

How much can you get from a Pell Grant?

Federal Student Aid hasn’t yet released the 2027–28 Federal Pell Grant maximum and minimum award amounts. For the 2026–27 award year, the biggest Federal Pell Grant award you can receive is $7,395, and the smallest award you can receive is $740, according to Federal Student Aid.

The amount you receive may be lower than the maximum. Your school calculates your award based on:

• Your Student Aid Index (SAI)
• Your school’s cost of attendance
• Your enrollment intensity, such as whether you attend full time or part time
• Whether you attend for the full academic year

In some cases, students may be eligible to receive additional Pell Grant funds beyond the scheduled award for an award year, often called year-round Pell. Ask your school’s financial aid office if this applies to you.

How to apply for a Federal Pell Grant

To apply for a Federal Pell Grant, submit the FAFSA^® at studentaid.gov.

According to Federal Student Aid, the 2027-28 FAFSA^® is expected to open by October 1, 2026, and the federal deadline is expected to be June 30, 2028. For 2026–27, the FAFSA was available to all applicants by October 1, 2025, and applications are accepted through June 30, 2027.

Some states and schools have early deadlines, so it’s a good idea to submit the FAFSA^® as soon as you can. Some financial aid awarded through the FAFSA^® may be limited or offered on a first-come, first-served basis, so submitting early can help you qualify for as much aid as possible.

You’ll need to complete the FAFSA^® every year you’re in school. Filing once does not cover all four years of college.

Before you start, gather information such as your Social Security number, federal tax information, and details for any required FAFSA^® contributors, such as a parent or spouse. After you submit the FAFSA^®, your information is sent to the schools you listed. Each school will use it to determine your financial aid offer, including whether you’re eligible for a Pell Grant.

Getting your Pell Grant award

If you’re eligible for a Pell Grant, your school will include it in your financial aid offer. Your aid offer may also include scholarships, state grants, institutional grants, work-study, federal student loans, or other types of aid.

Read your financial aid offer carefully so you understand what’s free money and what needs to be repaid. Scholarships and grants usually don’t need to be repaid, but student loans do.

Sallie Mae’s “How America Pays for College 2025” found that scholarships and grants covered 27% of the typical family’s college costs. But aid offers can be hard to compare: only 36% of families said their offer included the cost of attendance, and only 27% said it clearly showed expected out-of-pocket costs.

If anything is unclear, contact your school’s financial aid office and ask:

• How much of my aid is free money?
• How much would need to be repaid?
• What costs are included in the cost of attendance?
• What will I owe after grants, scholarships, and other aid?
• Are there additional grants, scholarships, or work-study options available?

How Pell Grant funds are paid

Your school will usually apply your Pell Grant funds first to school charges, such as tuition, fees, and room and board if you live on campus. If there are funds left over, the school will pay the remaining amount to you so you can use it for other education-related costs.

Pell Grant funds can help cover costs such as:

• Tuition and fees
• Books and supplies
• Housing and meals
• Transportation
• Other school-certified education expenses

Your school must tell you in writing how much your award is and how and when you’ll be paid.

What if your Pell Grant isn’t enough?

A Pell Grant can help reduce college costs, but it may not cover everything. If your Pell Grant and other aid don’t cover the full cost of attendance, you still have options.

Start by reviewing your full financial aid offer. Then consider these steps:

1. Ask your school about more aid. Contact the financial aid office to ask about additional grants, scholarships, work-study, or emergency aid.
2. Consider a financial aid appeal. If your family’s financial situation has changed, ask the school whether you can submit a financial aid appeal.
3. Apply for scholarships. Scholarships can be used with Pell Grants, and many are open to current college students, not just incoming freshmen.
4. Compare your remaining costs. Look at the full cost of attendance, not just tuition, and compare your out-of-pocket cost across schools.
5. Consider borrowing only after free aid. After using savings, income, grants, scholarships, work-study, and federal aid, student loans may help cover remaining gaps. Borrow only what you need and look for ways to keep your total loan costs down.

You shouldn’t rule out a school based on sticker price alone. Grants, scholarships, and other aid can lower what you pay, and two schools with similar sticker prices may have very different out-of-pocket costs. Sallie’s “Financial Aid Myth Report” also found that aid confusion led 34% of students to rule out a college based on sticker price and 32% to take on more student loan debt than necessary.

Checking the status of your Pell Grant

You can check your FAFSA^® status by logging into your studentaid.gov account. Your school’s financial aid office can also help you understand your Pell Grant eligibility, award amount, and disbursement schedule.

If your situation changes after submitting the FAFSA^®, contact your school’s financial aid office. They can explain whether you need to update your FAFSA^® or submit additional documentation.