What Does a Pell Grant Cover?

The Federal Pell Grant is money awarded to undergraduate college students by the U.S. Department of Education. Like all grants, it does not have to be repaid. It was originally called the Basic Educational Opportunity Grant, and is now named for Senator Claiborne Pell.
  1. Eligibility

    • The Pell Grant is intended for low-income undergraduate residents of the United States attending a degree program at an accredited institution. As of 2010, the maximum award is $5,500.

    Restrictions

    • The Pell Grant is not intended for students already in possession of a four-year degree. Students cannot apply if they have a past Pell Grant overpayment or Federal Stafford Loan in default, nor can they apply if they receive a scholarship that covers 100 percent of their tuition. Students who are incarcerated are also ineligible.

    How to Apply

    • To apply for the Pell Grant, or any other form of federal student financial aid, students must fill out a Free Application for Federal Student Aid (FAFSA). The form is available at FAFSA.gov. Although some websites will ask for a payment in exchange for assistance, all the guidance needed is available free at the FAFSA website.

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