What Is a Pell Grant?
Let me tell you straight up: a Pell Grant is federal student aid typically given to undergraduates who've shown significant financial need on their Free Application for Federal Student Aid (FAFSA). Unlike loans, you usually don't have to pay these back.
How a Pell Grant Works
To get started, you need to submit your FAFSA. Each school you apply to will figure out your federal aid based on that info. They use two key numbers: your Student Aid Index (SAI), which looks at your and your parents' income and assets, and the school's cost of attendance (COA), covering tuition, fees, books, room and board, and more.
If there's a big gap between your SAI and the COA, the school will likely offer you aid. This could include scholarships, work-study, or Pell Grants. Remember, Pell Grants and subsidized loans are specifically for those with higher financial need, and Pell Grants are mostly for undergrads, except in some teacher programs.
Limitations for Pell Grants
For the 2025–2026 year, the max you can get is $7,395 per year. You can't receive more than 12 terms total, which is about six years, tracked by the Department of Education's Lifetime Eligibility Used (LEU) percentage. If your LEU hits 600% or more, no more Pell funding for you.
3 Pell Grant Alternatives
- Federal Supplemental Educational Opportunity Grants (FSEOG): These go to students with exceptional need, up to $4,000 a year, similar to Pell.
- Teacher Education Access for College and Higher Education (TEACH) Grants: You can get up to $4,000 yearly, but you must agree to teach after graduation under specific terms.
- Iraq and Afghanistan Service Grants (IASG): If you're ineligible for Pell and lost a parent or guardian in service post-9/11, and were under 24 or enrolled part-time at the time, you might qualify.
The Bottom Line
Pell Grants help students with real financial needs afford college. You must submit the FAFSA to qualify, just like other federal aid. The big plus is no repayment required, unlike student loans.
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