Federal Pell Grants

The Pell Grant is largest federal grant program. The Federal Pell Grant is a need-based grant for undergraduate students. For many students, Pell Grants provide a foundation of financial aid to which other aid may be added. A Federal Pell Grant, unlike a loan, does not have to be repaid. 

Pell Grants Can Be Used For
They can be used for tuition, fees, and living expenses, even at some schools with low fees, such as community colleges. For many students, Pell Grants provide a foundation of financial aid to which other aid may be added. 

Pell Grants Are Awarded To
Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree. In some cases, you may receive a Pell Grant to attend a teaching credential program. Pell Grants can also be awarded to students going to school less than half time. Students going to school less than half time, do not receive as much as if they were enrolled full time, but your school must disburse your Pell Grant funds in accordance with your enrollment status and cannot refuse you an award simply because you are enrolled less than half time.

Automatically Considered For A Pell Grant When You File The FAFSA
When you file the Free Application for Federal Student Aid (FAFSA), you are automatically considered for a Pell Grant. You also indicate on the form which loans and grants you are interested in. To determine your financial need, the U.S. Department of Education uses a standard formula to evaluate the information you reported on your FAFSA. The formula produces an Expected Family Contribution (EFC) number. Your Student Aid Report (SAR) contains this number, in the upper right portion of page 1, and will tell you if you're eligible.

How Much Do Pell Grants Award
The Pell Grant is awarded to all eligible students. For the 2000-2001 award year, Pell Grants for full-time students ranged from $400 to $3,300. The actual amount of the grant depends on the EFC and the your cost of attendance, whether you are a full time or a part time student, and whether you attend school for a full academic year or less. Students may not receive Pell Grant funds from more than one school at a time. Students can receive only one Pell Grant in an award year. The amounts for future awards will depend on program funding.

How Do You Receive Your Pell Grant
Your school can credit the Pell Grant funds to your school account, pay you directly (usually by check), or combine these methods. The school must tell you in writing how and when you'll be paid and how much your award will be. Schools must pay students at least once per term (semester, trimester, or quarter). Schools that do not use formally defined, traditional terms must pay you at least twice per academic year.