DB101 California - Pell Grants: Overview (2024)

FAQs

How do you know how much money you will awarded in Pell Grant? ›

To estimate the amount that you could receive, use a Pell Grant calculator. The Federal Student Aid website's Student Aid Estimator can help you understand how much Pell Grant you might qualify for. Credible also has some calculators to help you with student loans.

The amount of Federal Pell Grant funds you may receive over your lifetime is limited by federal law to be the equivalent of six years of Pell Grant funding. Since the amount of a scheduled Pell Grant award you can receive each award year is equal to 100%, the six-year equivalent is 600%.

The following students are ineligible: Individuals who owe a refund on a grant made by a federal student aid program under Title IV of the Higher Education Act; Individuals in default on a Title IV loan; Individuals incarcerated in prison; and.

Award Amount

Under certain circ*mstances, an eligible student can receive up to 150 percent of their scheduled Pell Grant award for an award year-referred to as “year-round Pell” by attending an additional term (Fall, Spring and Summer) within that award year.

On December 29, 2022, the President signed the Consolidated Appropriations Act, 2023, which included a $500 increase to the maximum Pell Grant. The maximum Pell Grant award for the 2023-2024 award year is $7,395, and the corresponding maximum Pell Grant eligible expected family contribution (EFC) is 6656.

The Pell Grant can theoretically be used to pay for any expense. However, using these funds on expenses that aren't considered “qualified education expenses” may make the money subject to taxation.

You can receive the Pell Grant for no more than 12 terms or the equivalent (roughly six years). This is called the Federal Pell Grant Lifetime Eligibility Used (LEU). You'll receive a notice if you're getting close to your limit. If you have any questions, contact your school's financial aid office.

This means that the student could receive a total of up to $10,267.50 (150% of their Scheduled Award amount of $6,845) for the award year. However, the disbursem*nt for each term must be calculated per the Pell rules described in this volume, so the actual amount the student receives may be less than this maximum.

The amount granted depends on your Expected Family Contribution (EFC), cost of attendance, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.

Is Pell Grant based on adjusted gross income? ›

Minimum Pell Grant: A student shall be eligible for a minimum Pell Grant when the student is enrolled in an eligible program full-time and their adjusted gross income is either equal to or less than (1) 325% or 275% of the poverty line for a dependent student subject family type or (2) 400%, 350%, or 275% of the ...

Pell Grants are need-based awards. Although students with family incomes up to $45,000 may be eligible, most awards go to students with family incomes below $20,000.

Pell Grants are federal grants and Cal Grants are state grants. Both are for students with financial need. Some Cal Grants have a minimum GPA requirement while federal Pell Grants do not. You could qualify for both a Pell Grant and a Cal Grant.

Typically, an institution puts the Pell Grant award in the student's account balance automatically to cover tuition, fees, and room and board. If there are additional funds left over, a student will be issued a credit.

You can't use your Pell Grant to directly pay your student loan. However, if there are any funds left over after your school applies your Pell Grant toward your tuition and fees, those funds are given directly to you, and you then may use them to reduce your loan amount.

If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.