Pell Grant.
In plain English
A Pell Grant is the largest federal grant program for undergraduates, awarded based on financial need shown through the FAFSA. Because it is a grant, not a loan, it generally does not have to be repaid. It goes to students who have not yet earned a bachelor's or professional degree, and the amount depends on your Student Aid Index, your cost of attendance, and whether you attend full- or part-time. Congress sets a maximum award each year, and you can receive Pell for a limited number of total years across your undergraduate education. In rare cases you may have to repay part of a Pell Grant, for example if you withdraw early in a term.
01Why it matters
A Pell Grant is money toward college you keep, not a debt you carry for years, so qualifying can be the difference between graduating with manageable loans or with far more.
02The math, step by step
A low-income student files the FAFSA, which produces a low Student Aid Index and qualifies them for a Pell Grant. For the 2025-2026 award year, the maximum award is $7,395, and their actual amount is set by their need and enrollment level. The funds are applied to their account and do not have to be repaid as long as they meet the program's conditions.
03What this is NOT
A Pell Grant is not a loan. It is gift aid you generally never repay. That makes it fundamentally different from a federal student loan, which you borrow and pay back with interest.
04Receipts
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