After applying for federal financial aid, the federal government determines the EFC, or expected family contribution, toward the student's educational need. According to U.S. News & World Report, a low EFC, such as $4,600.00 and below, triggers the eligibility of the Pell Grant for the student's upcoming school year. Having a high EFC makes the student ineligible for this grant program.
Based on the EFC, Pell Grant eligibility factors in both the student's and parents' income, the size of the family, and how many family members are attending post-secondary schools, asserts the U.S. Department of Education.
To compete with inflation and rising educational costs, the Pell Grant program is adding more money to the usual amounts, and allowing more students to be eligible in the coming years, says U.S. News & World Report.