Our goal here at Credible is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.
Federal Pell Grants are a great way to receive funding for a college education that does not need to be repaid. Students can apply for Pell grants by completing the Free Application for Federal Student Aid (FAFSA). However, not everyone who applies for the FAFSA will be eligible for a Pell grant.
Your Pell grant eligibility is determined by:
- Financial Standing: Pell grants are issued to students who show strong financial need. This will be determined through the FAFSA application, in which the U.S. Department of Education examines the income and assets of the student and their family.
- School’s Participation: Your school must be one of the 6,000 institutions that participate in the federal Pell grant program in order to receive any financial aid.
- Citizenship: Only U.S. citizens or eligible non-citizens will qualify for federal aid.
- Legal Status: Students may not be subject to any legal action, may not have history of arrests, and cannot have any convictions related to drug or sexual offenses in order to be eligible.
- Academic Progress: You must retain certain academic standards to keep Pell grant eligibility.
- Special Circumstances: Students who have a parent that perished in the Iraq or Afghanistan wars are eligible for a Pell grant. Also students with intellectual disabilities are eligible for Pell grants.
In order for any student to be eligible for a Pell grant they must be eligible for any type of federal aid.
All students must reapply for their FAFSA each academic school year to continue receiving any money through a Pell grant. In order to retain eligibility student must:
- Still show financial need in the following school year
- Students must maintain satisfactory academic standing according to their schools
- Maintain their citizenship status
- Avoid arrests or any legal troubles.
- Stay in good standing on federal loans
How Much Money Do Students Receive?
There are a number of factors that go into deciding the award amount for Pell grant recipients. The minimum amount that can be awarded is currently $650. The maximum is $6,095 for the 2018-2019 award year (July 1, 2018 through June 30, 2019). Students attending school year-round — in fall, spring and summer — can receive 150% of the maximum award, or $9,142.
Some factors that affect the amount of money you may be awarded include:
- Tuition and school expenses.
- Student’s financial need, which is determined by the Estimated Family Contribution (EFC) on the FAFSA application.
- Student’s enrollment in school either part time or full time.
- Whether or not the student plans to attend classes for a full academic year.
To estimate the amount that you may receive, you can use a Pell grant calculator. The FAFSA4caster Calculator can be used as a Pell grant calculator; this tool is offered by the Federal Student Aid Office, FAFSA website. This will give you a better idea of the dollar amount you may be able to receive in your federal Pell grant.
We at Credible have also built some calculators to help you with student loans. Check them out below:
- Student loan calculator: see how much a loan would cost you over the life of the loan
- Student loan refinancing calculator: see how much you could save when you refinance student loans with Credible
- Student loan repayment calculator: see how long it will take to pay off the total cost of your student loans
Credible is a multi-lender marketplace that allows borrowers to get personalized rates and compare private student loans from lenders, without affecting their credit scores.