The California Pell Grant can be used for tuition at any California college that participates in the Federal Student Aid Program. Undergraduate students who have not earned a bachelor's degree and have an Expected Family Contribution (EFC) number of $3,850 or lower are eligible for the grant. The grant amount for the 2010-2011 school year was $5,550.
Students can apply for the Pell Grant by filing the Free Application for Federal Student Aid (FAFSA). Filling out the FAFSA is a requirement at most schools and financial aid offices routinely review applications for Pell Grant eligibility. Schools can apply Pell Grants directly to an eligible student's expenses, pay the money to the student or use a combination of both methods. Regardless of how the money is given out, it must be distributed once every term or twice every school year.
Unlike loans, grants do not have to be paid back after graduation. However, students who withdraw from school early may be required to give the money back to the school. Students who owe former schools Pell Grant money are not allowed to receive financial aid at another school until the grant money is repaid.