Pell Grant

Posted on by user

Pell Grants

Key takeaways

  • Pell Grants are federal, need-based grants for undergraduate students who demonstrate financial need on the Free Application for Federal Student Aid (FAFSA).
  • Pell Grants do not generally require repayment.
  • For the 2025–2026 award year, the maximum Pell Grant is $7,395. Lifetime eligibility is limited to the equivalent of 12 full-time semesters (600% LEU).

What is a Pell Grant?

A Pell Grant is federal student aid awarded to undergraduates with exceptional financial need. Unlike loans, Pell Grants typically do not have to be repaid. Outside limited exceptions for some postbaccalaureate teacher training programs, Pell Grants are reserved for undergraduate study.

How Pell Grants are determined

  1. Submit the FAFSA. Schools use the FAFSA to determine eligibility.
  2. Two core figures drive the calculation:
  3. Student Aid Index (SAI) — an eligibility index reflecting the student’s and parents’ income and assets.
  4. Cost of Attendance (COA) — the school’s estimated total cost (tuition, fees, books, room and board, etc.).
  5. Each school compares the SAI to its COA to determine the student’s financial need and how much federal aid (including Pell Grants) to offer. Aid offers can include loans, scholarships, work‑study, and grants.

You must file the FAFSA for every year you want federal aid, including Pell Grants.

Limitations and lifetime eligibility

  • 2025–2026 maximum annual award: $7,395.
  • Lifetime limit: funding cannot exceed 12 terms (about six academic years). The Department of Education tracks this as Lifetime Eligibility Used (LEU). Once a student’s LEU reaches or exceeds 600%, they are no longer eligible for Pell Grants.

Alternatives to Pell Grants

If a student is ineligible for Pell Grants or needs additional aid, other federal grant options include:
* Federal Supplemental Educational Opportunity Grant (FSEOG) — for students with exceptional need; awards vary and can be up to $4,000 annually.
* TEACH Grant — up to $4,000 per year for students who agree to teach in high‑need fields at low‑income schools and meet service obligations; failure to meet the service commitment converts the grant to a loan that must be repaid.
* Iraq and Afghanistan Service Grant (IASG) — available to students who aren’t eligible for Pell solely because of their SAI, but who lost a parent or guardian due to military service in Iraq or Afghanistan after 9/11 and met age/enrollment criteria at the time of the death.

How to apply and next steps

  • Complete the FAFSA for each academic year you need aid.
  • Review financial aid award letters from each school you applied to — these will list Pell Grant amounts and other aid.
  • Follow your school’s instructions to accept, decline, or adjust offered aid.

Bottom line

Pell Grants are a primary source of nonrepayable federal aid for undergraduates with demonstrated financial need. Filing the FAFSA annually is required to be considered, and students should compare award offers and explore other grant programs if additional support is needed.