Education
What is Pell Grant?
Definition
The Pell Grant is federal, need-based aid for undergraduate students that does not have to be repaid. Award amounts are set annually by Congress — the 2026-27 maximum is $7,395 — and depend on the FAFSA-derived Student Aid Index, cost of attendance and enrollment intensity.
Real-World Example
A full-time freshman with an SAI of $0 receives the maximum Pell Grant, applied directly to tuition and fees each semester. Any surplus is refunded to cover books and living costs.
Why It Matters
Pell Grants are the foundation of federal aid for lower-income undergraduates and remain the largest source of gift aid in U.S. higher education.
Frequently Asked Questions
Do I have to repay a Pell Grant?
Generally no, but withdrawing early in the term can trigger a Return of Title IV Funds calculation and partial repayment.