10 Federal Student Aid Programs and Eligibility Requirements

2. Federal Pell Grant

The Pell Grant is the largest federal grant program for undergraduates with demonstrated financial need. Grants don’t need to be repaid, which makes them especially valuable for low- and moderate-income students. Eligibility requires filing the FAFSA and having an SAI within the range schools use to award Pell. Enrollment status—such as full-time or part-time—can affect award amounts and disbursement timing. Schools apply the cost of attendance (COA) and SAI to determine specific grant amounts, and many also prorate awards for students taking fewer credits. Keep in mind policy proposals and legislative changes sometimes alter maximum award levels or credit requirements, so check StudentAid.gov and your financial aid office for the current maximum for the academic year. If you receive a Pell Grant, watch for enrollment and satisfactory academic progress rules; failing to meet them can stop future disbursements. If you change schools, notify both institutions so awards are coordinated. Finally, use Pell funds primarily for direct college costs—tuition, fees, and course materials—and ask the financial aid office how your school handles disbursements and reimbursements.