Pell Grant
A federal need-based grant for undergraduate students that does not need to be repaid. Maximum award rises annually with inflation.
The Federal Pell Grant is the largest federal grant program for undergraduate students. Unlike loans, Pell Grants do not need to be repaid. Eligibility is based on the Student Aid Index (SAI) calculated from the FAFSA, and the maximum award rises modestly each year. For the 2024-25 cycle, the maximum Pell Grant was $7,395.
Pell Grants are awarded directly by the federal government and applied to tuition and fees at the student's college. Most Pell-eligible families have an SAI low enough to indicate significant financial need; schools often layer additional institutional grant aid on top of the Pell.
For parents, the share of a college's incoming class that receives Pell Grants is a useful affordability signal. Schools with high Pell percentages (often 20%+ at major publics, lower at most private universities) typically have stronger institutional grant aid for middle-income families as well.
Related terms
View all terms- FAFSAThe Free Application for Federal Student Aid. The main form for federal grants, loans, and most state and institutional aid in the U.S.
- SAIStudent Aid Index. The current FAFSA-calculated number used to determine federal and most institutional financial aid eligibility.
- EFCExpected Family Contribution. The legacy term for what families were expected to pay annually toward college, now replaced by SAI.
- CSS ProfileA supplementary aid form used by ~250 selective colleges to award their own institutional aid. Goes beyond FAFSA in detail.
- Net PriceWhat a family actually pays after grants and scholarships, as opposed to the published sticker price. The number that should drive budgeting decisions.