• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcasts
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • Best Student Loans And Rates In May 2023
        • 10 Best Private Student Loans Of May 2023
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Student Loan Refinance Companies In May 2023
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers Of May 2023
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2023
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2023
        • M1 Finance Review
        • TD Ameritrade Review 2023
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review 2023
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 20 Best Side Hustles You Can Start Earning With In 2023
        • 54 Side Hustle Ideas To Make Money Fast In 2023
        • 100 Ways To Make Money In College In 2023
        • 80 Ways To Make Money From Home In 2023
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 40 Passive Income Ideas For 2023
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • 10 Best High Yield Savings Accounts Of May 2023
        • 10 Best Money Market Accounts Of May 2023
        • 10 Best Free Checking Accounts In May 2023
        • Best Bank CD Rates Of May 2023
        • 10 Best Business Checking Accounts In May 2023
        • Best Online Banks Of May 2023
        • Best Credit Unions Nationwide Of May 2023
        • Best College Student Checking Accounts Of May 2023
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • Best Credit Monitoring Services For 2023
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Awards
  • Search
Home » Student Loans » Grants vs Loans » Pell Grants: What They Are And How To Qualify

Pell Grants: What They Are And How To Qualify

Updated: May 10, 2023 By Robert Farrington

28Shares
  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • Email
  • Print

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Any investing information provided on this page is for educational purposes only. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

pell grants: pell grant award amounts for 2022-2023

Pell Grants are a form of financial aid issued by the United States Department of Education. Unlike other forms of financial aid, Pell Grants are not loans. Recipients don’t have to repay the money that they receive from the grant.

With the average cost of a bachelor's degree at a public four-year university now costing over $40,000, many students assume that they'll need to take out student loans to cover the cost. But we always recommend that students try to limit their student debt by pursuing "free" money options first like grants, scholarships, 529 plan funds, and more. 

For those who are able to receive them, Pell Grants are one of the best free financing options for students to offset the high cost of pursuing an undergraduate degree. But there are strict rules about who qualifies for the grant. Here's what you need to know.

Table of Contents
What Is The Pell Grant?
What Are The Qualification Criteria?
What Does It Mean To Demonstrate Financial Need?
How Much Money Can I Get Through A Pell Grant?
How To Apply For A Pell Grant
Final Thoughts

Watch The Video

What Is The Pell Grant?

Pell Grants are federal educational grants (meaning they are free money that does not have to be repaid) that are meant to provide financial aid for students who display “exceptional” financial need. For the 2022-2023 school year, it can provide up to $6,895 per student per year that meets the qualifications.

Unlike many forms of financial aid, Pell Grants aren't available for graduate students. They're typically only accessible to students who haven't earned an undergraduate (bachelor’s) degree. In some cases, students training to be teachers can also receive the grant during their master’s degree.

Students who meet the qualification criteria, may receive the grant for 12 terms, which translates to approximately six years of school. This is helpful for students who are not attending school full-time, but still need financial aid.

Related: Do You Have to Pay Back Grants?

What Are The Qualification Criteria?

To qualify for a Pell Grant, you must meet the following criteria:

  • Be a US Citizen.
  • Are enrolled as a student in an undergraduate program.
  • Have not earned an undergraduate (bachelor’s degree) yet or are part of a qualified post baccalaureate teacher’s training program.
  • Have completed the FAFSA.
  • Have received the grant for less than 12 terms.
  • Are able to demonstrate financial need

Note: starting this year, incarcerated persons are now eligible for a Pell Grant as well.

What Does It Mean To Demonstrate Financial Need?

With college being so expensive, most students are able to demonstrate at least some financial need. However, the Pell Grant is for students from families with very low incomes.

The US Department of Education determines your family’s level of need using a calculation called your “Expected Family Contribution.” Expected Family Contribution (EFC) is the amount of money your family is expected to provide to help you with your education.

Students who have parents who earned less than $26,000 in the previous year and were part of a federal benefit program (such as SNAP, WIC, Medicaid, Free Lunch programs etc.) automatically have an EFC of $0. Those from families with higher incomes will have EFC’s above $0, but they may still qualify for the grant.

The FAFSA4Caster is a free calculator that can help you determine how much money you may receive from a Pell Grant if you apply for an undergraduate degree in the future.

How Much Money Can I Get Through A Pell Grant?

For the 2022-2023 School Year (which runs from July 1, 2022 through June 30, 2023), borrowers can get between $700 to $6,895 from the grant. The amount of money you receive depends on three primary factors:

  • The cost of attending your school (you cannot receive more than the estimated cost of attendance).
  • Your family’s expected contribution (which is determined by the FAFSA).
  • Your enrollment status (full-time, part-time, etc.)

A full-time student, attending a school that costs $16,700 annually, who has an expected family contribution of $150 per year will receive $6,895 from the Pell Grant. You can see the full 2022-2023 Pell Grant Payment Schedule here.

How To Apply For A Pell Grant

One of the great things about the Pell Grant is students don’t have to apply separately for this grant. When you fill out the FAFSA, you automatically apply for a Pell Grant.

If you qualify for the grant, it will be included as part of your student aid package.

You'll receive notification of the grant award when your school's financial aid office contacts you. It will be listed as a line item on your financial aid award (along with any offers of scholarship from the school, and any student loans you're eligible for).

Final Thoughts

It's important to understand that you can choose to decline loans from your student aid package and still accept the Pell Grant. Since this is free money that doesn't have to be repaid. I recommend always accepting 100% of grant funds, even if you decide to decline the other forms of aid.

If you're looking for more funding options to help you minimize your student debt, be sure to check out our complete list of every financial aid program by state. And if you still have a funding gap after pursuing all the grants and scholarships you may qualify for, this is our take on the best order of operations to pay for college. 

Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

Editor: Clint Proctor Reviewed by: Chris Muller

pell grants
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of

I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree

0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

Student Loan Resources

Featured Lender Reviews

>  Credible (recommended)
>  Splash (recommended)
>  ELFI
>  LendKey
>  Earnest
>  Laurel Road

Paying For College

  • Best Student Loans And Rates
  • Best Private Student Loans
  • Student Loan And Financial Aid Programs By State
  • Student Loans For Community College
  • Best International Student Loans
  • Best Student Loans For Graduate School
  • Best Student Loans For Your MBA
  • Best Student Loans For Medical School
  • Best No-Cosigner Private Student Loans
  • How To Get A Student Loan With Bad Credit

Navigating Repayment

  • How To Select The Best Student Loan Repayment Plan
  • 5 Legal Ways To Lower Your Student Loan Payment
  • How To Use A 529 Plan For Student Loan Repayment
  • These Companies Offer Student Loan Repayment Assistance

Student Loan Forgiveness

  • Student Loan Forgiveness Programs (The Complete List)
  • Student Loan Forgiveness Programs By State
  • President Biden’s Student Loan Forgiveness Plan
  • Public Service Loan Forgiveness
  • Borrower Defense To Repayment
  • For-Profit College Student Loan Forgiveness List
  • Private Student Loan Forgiveness
  • Trade School Loan Forgiveness Programs

Student Loan Refinance

  • Best Student Loan Refinance Companies
  • Best Student Loan Refinancing Bonuses And Promotional Offers
  • Lenders That Offer Student Loan Refinancing Without A Degree
  • How To Refinance An International Student Loan
  • Best Medical School Student Loan Refinancing

More On Student Loans

  • Top Student Loan Scams
  • Does The Government Profit Off Of Student Loans?
  • Statute of Limitations Laws For Student Loans
  • What Should You Do With Your Old FFELP Loans?
  • How To Get A Refund Of Your Federal Student Loan Payments

Footer

Who We Are

The College Investor is an independent, advertising-supported financial media publisher, focusing on news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2023 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz