As a grant, it’s not intended to be repaid. But there are certain instances in which you may be on the hook for repaying the money. Learn what a Pell Grant is, how it works, when you might need to pay one back.
How Pell Grants Work
To apply for a federal Pell Grant, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA) form every year. Students who qualify may receive a maximum of $6,895 in Pell Grant funds for the 2022–2023 school year. The amount you receive will depend on your expected family contribution (EFC), the cost of attendance for your specific program, whether you’re a full-time or part-time student, and how much of the academic year you plan to attend school for. The Department of Education calculates your EFC based on multiple factors, including:
Taxed and untaxed incomeGovernment benefits, such as Social Security or unemploymentAssetsFamily sizeNumber of family members who will attend college.
While it’s hard to predict how much Pell Grant money you could get before you apply, the Department of Education shows you on its website how much money you can expect if you qualify based on your EFC, the cost to attend the schools you list in your FAFSA, and how many classes you’ll take. For example, if you qualify, you may be able to get $6,895 in Pell Grant funds for the 2022–2023 school year if your EFC is $0, you attend full-time, and your cost of attendance is $6,985 or more.
Why You Might Have To Pay Back a Pell Grant
The major benefit of a Pell Grant is that if you meet the requirements, you don’t need to repay it. However, you may have to repay the money if you:
Withdraw early from the school program the grant was given forChange your enrollment status—for example, if you switch from full-time to part-time enrollment, you’ll need to repay some of the grant moneyReceive other federal aid or scholarships that reduce your need for the grant.
How To Repay a Pell Grant
If you’re required to pay back a Pell Grant, your school will notify you. You’ll have 45 days after that to make the repayment in full or enter what’s known as a “satisfactory repayment arrangement.” A satisfactory repayment arrangement may allow you to regain eligibility for federal student aid. It requires six consecutive, voluntary payments made on time and for the full amount due.
How To Keep a Pell Grant
If you haven’t yet lost a Pell Grant, you’ll need to maintain the grant’s requirements in order to keep it. That means you’ll need to meet the income threshold, fill out the FAFSA every year, and make continuous progress toward your degree. Each school has its own policy about what constitutes satisfactory academic progress. But in general, it means you need to make sufficient grades and finish enough classes to keep moving forward with your degree. You’ll lose eligibility for more Pell Grants after you’ve earned a baccalaureate or your first professional degree, or have received a Pell Grant for 12 terms. You’ll get a notice when you’re getting close to using up the 12 terms.
Other Grants and Student Loans
While a Pell Grant is an excellent option to help fund your college education, there are other similar grants you could apply for if you don’t qualify.
Federal Supplemental Educational Opportunity Grants (FSEOG): For undergraduate students with exceptional financial need Iraq and Afghanistan Service Grants: For students whose parent or guardian died serving in Afghanistan or Iraq Teacher Education Assistance for College and Higher Education (TEACH) Grants: For students who plan to become teachers and are willing to meet the service requirements State grants: State governments also offer grants for students in need. Start by looking for the contact for college grants in your state.
Beyond grants, there are other options to finance your education. You can take out federal student loans by filling out the FAFSA and apply for private student loans with various lenders. Though these have to be repaid, they can help cover the rising cost of college. You also might consider a work-study program at your school, which can help offset the cost of attending college or help pay for extras like room and board, books, and dining plans. If you don’t do either of the above, you’ll lose your eligibility for more student aid.
