Pell Grant

DEFINITION of 'Pell Grant '

A program that awards money to eligible undergraduate and, in certain situations, post-baccalaureate students. Unlike other Federal financial aid, the The Federal Pell Grant Program does not need to be repaid. Pell Grants are needs-based grants that are intended to provide low-income students access to post-secondary education. Grant amounts are determined by the students' expected family contribution (EFC), the cost of attendance, whether the student is full- or part-time and whether or not the students attends a full academic year.

BREAKING DOWN 'Pell Grant '

Students can receive Pell Grant funding from one school at a time. Higher education institutions that participate in the Federal Pell Grant Program can credit the Pell Grant to the student's school account or pay the student directly, typically by check. The school must release funds at least once per term (semester, trimester or quarter), or at least twice per school year where semester, trimester or quarterly terms are not defined.




RELATED TERMS
  1. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
  2. Expected Family Contribution - ...

    The amount of money that a student's family is expected to contribute ...
  3. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  4. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate ...
  5. Stafford Loan

    A type of federal, fixed-rate student loan that was available ...
  6. Grant-In-Aid

    A transfer of money from the federal government to a state government, ...
Related Articles
  1. Entrepreneurship

    Five Online College Grants for Single Mothers

    A degree may get you a better-paying job, but you probably need a good-paying job to pay for it and afford child care at the same time.
  2. Credit & Loans

    A Quick Guide to How FAFSA Loans Work

    If you’re headed to college and want to know how to apply for financial aid, this is where you need to start.
  3. Budgeting

    Who Should Pay For College?

    With college costs continuing to escalate, the question of who pays for it is increasingly relevant.
  4. Personal Finance

    6 Sources Of Student Money You May Have Missed

    This checklist will help you get all the money for school you can.
  5. Savings

    A Beginner's Guide to Getting Student Loans

    Follow these 5 steps and you'll be well on your way to knowing which loans to go after – and which college really offers you the best deal.
  6. Entrepreneurship

    Government Grants for Women-Owned Businesses

    Explore options for financial grants as a female business owner, and discover helpful resources for alternate ways of funding a business, including loans.
  7. Credit & Loans

    Fund Your Schooling with PLUS Loans

    Find out what they and are whether you're eligible to apply for these no-maximum loans.
  8. Savings

    A Look at the Cost and Tax Treatment of College

    Is there more we can do to improve the affordability of post-secondary education? We take a look at how students and colleges are taxed today.
  9. Personal Finance

    8 College Financing Flubs

    These are the most common mistakes made by students and parents, as it relates to funding for higher education.
  10. Personal Finance

    How To Finance Your Studies Abroad

    Studying abroad is a goal for many, but it can often be expensive. Find out why you don't have to spend all of your savings to study abroad.
RELATED FAQS
  1. What are the most common sources of funds given in a financial aid award letter?

    Read this article to learn about the four most common sources of funding given in a financial aid award letter sent to a ... Read Answer >>
  2. Should I apply for student loans if I haven't finished applying for scholarships ...

    Apply to a variety of financial help sources by submitting a Free Application for Federal Student Aid form, which will be ... Read Answer >>
  3. What factors do schools consider when awarding financial aid?

    Learn how schools award financial aid and student loans for you and your family. Colleges consider many variables, including ... Read Answer >>
  4. What is the difference between certified and non-certified private student loans?

    Learn the main differences between certified and non-certified private student loans, and see why non-certified student loans ... Read Answer >>
  5. Student loans, federal and private: what's the difference?

    Learn about the differences between federal and private student loans, and discover the types of federal funding available ... Read Answer >>
  6. What are some examples of how I could use my IRA savings for college?

    Use your traditional IRA for qualified college expenses for you or your family. The retirement funds can be used for books, ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center