Question 1

How much is a Pell Grant?‎

Accepted Answer

The amount of money given to each eligible student varies, and this amount can change every year. For the 2025-26 school year, the maximum award was $7,395 [2].

Not every student receives the maximum amount. The actual award amount for each student depends on several factors, such as the following:

Attendance plans Cost of attendance Expected family contribution Enrollment status (full-time or part-time)

Some students may receive additional money from the Pell Grant program. Children of service members who died in Iraq or Afghanistan or who died in the line of duty while working as public safety officers can get a larger award. To qualify for this program, the student must attend school at least part-time and be under 33 years old as of January 1 of the year they will enroll.

Question 2

What costs does a Pell Grant cover?‎

Accepted Answer

The maximum amount you can receive from a Pell Grant most likely will not cover the entire cost of your education, so most students use Pell Grants as part of an overall financial package. Your award spreads further depending on the school you attend.

For example, the Pell Grant usually covers a greater percentage of the expenses at a community college than at a four-year private university. Community colleges tend to cost less to attend than universities.

You also can use a Pell Grant to attend a trade school. If you choose this option, you may find that the award pays for more of your program than if you attended a four-year college. In some cases, the award may cover the entire school expense.

Question 3

How are Pell Grants distributed?‎

Accepted Answer

The Department of Education sends the award directly to the schools. In most cases, the school applies the money to the student's account and returns anything left over to the student, but this varies depending on the school's policies. This is a one-time disbursement for each academic semester. Check with your school's financial aid department to find out when they disperse the award.

Question 4

Do you have to pay Pell Grants back on taxes?‎

Accepted Answer

Most of the time, the money you receive from a Pell Grant is not taxable as long as you meet two requirements. You must be enrolled in school, working toward a degree or job training, and you have to use the money for qualified education expenses. If you use your Pell Grant money to pay for room and board, travel between home and school, or supplies not required by your program, you have to pay taxes on that portion of the grant money.

*Keep in mind that you should consult your Pell Grant provider or studentaid.gov to ensure the accuracy of this information as it applies to your unique circumstances and in case the Pell Grant program terms have changed.

Do You Have to Pay Back Pell Grants?

Key takeaways

What is a federal Pell Grant?

Do you have to pay back a federal Pell Grant?

You withdraw early from school.

Your enrollment status changes.

Your household income changes.

You receive financial aid from other sources.

You receive more Federal Student Aid than you're eligible to receive.

Do you get to keep leftover Pell Grant money?

What happens when you have to repay a Pell Grant?

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Frequently asked questions (FAQ)

How much is a Pell Grant?‎‎

What costs does a Pell Grant cover?‎‎

How are Pell Grants distributed?‎‎

Do you have to pay Pell Grants back on taxes?‎‎

Article sources

Coursera Staff