As a need-based award, the Pell Grant comes with strict income-based regulations. Students must complete a Free Application for Federal Student Aid (FAFSA) to determine their need via the expected family contribution (EFC) formula.
Dependent students (those who are claimed as dependents by parents or legal guardians) must supply accurate information on their own income, their family's income, the number of people in their family/household (this refers to parents, siblings and other family members, and not to college roommates), and the number of family members enrolled in a college program. Independent students not claimed as dependents need not provide their parents' income.
The dollar amount of a student's Pell Grant depends on the calculated EFC. An EFC of 0 allows the student to receive the maximum award, with larger numbers granted a smaller award.
Only undergraduate students who have not yet earned a degree are eligible for the Pell Grant. The U.S. Department of Education defines a first-time undergraduate student as an individual who is enrolled in a post-secondary program of study and does not already hold a bachelor's degree.
A student with an associate's degree from a community college or technical school who plans on enrolling or transferring to a bachelor's level program may be eligible for a Pell Grant. Additionally, some students seeking a post-bachelor's degree may be eligible. Pell grants for post-bachelor's study are typically only given to students enrolled in teacher certification programs.
Pell Grant regulations include several requirements and guidelines for special populations and/or types of study. Typically, a Pell Grant is only awarded for a maximum of four years of undergraduate study. Students enrolled in a bachelor's/first professional program such as pharmacy may ask for additional aid.
Another special population of students includes incarcerated individuals. Students incarcerated in state prisons are not eligible for Pell Grants, while those jailed in a local or city prison may be considered eligible. Additionally, special programs such as correspondence courses and foreign study may have separate regulations. Students in special programs may receive Pell Grant money if the school meets all U.S. eligibility requirements for an educational institution.