Pell Grant

AAA

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.

INVESTOPEDIA EXPLAINS '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. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Education Loan

    Money borrowed to finance education or school related expenses. ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  5. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
  6. Whartonite

    A graduate of the Wharton School of Business at the University ...
RELATED FAQS
  1. What are the most common sources of funds given in a financial aid award letter?

    Most people cannot afford to pay for college tuition for four or more years without some sort of financial aid or assistance. ... Read Full Answer >>
  2. What are some examples of how I could use my IRA savings for college?

    Account holders can use their traditional IRA savings to pay for several qualified college expenses, including books, fees, ... Read Full Answer >>
  3. For which kind of jobs is having Magnum Cum Laude most important?

    Having a magna cum laude degree is most important for jobs in the fields of finance, management consulting and engineering. ... Read Full Answer >>
  4. How does accrued interest work on student loans?

    Using private and federal student loans to finance a college education is a common funding strategy, but students are often ... Read Full Answer >>
  5. What advice has Tim Cook given to would-be business leaders?

    Billionaire tech tycoon Tim Cook appeared at an event to discuss leadership with the would-be business leaders of Duke University's ... Read Full Answer >>
  6. Where did the term Magna Cum Laude originate from and why is it used in academics?

    The Latin phrase magna cum laude translates to "with great praise." Literally, "magna" translates to "great," "cum" to "with" ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    Your Kid's College Loan: Who Should Foot The Bill?

    Discover the federal student loan options for both parents and students.
  2. Credit & Loans

    Student Financial Aid Changes: FAFSA 2009

    The Free Application for Federal Student Aid got an upgrade in 2009. All those applying should be aware of these improvements.
  3. Retirement

    College Cost Reduction Act Helps Students Meet Payments

    This legislation can help families pay college costs and reduce student debt.
  4. Credit & Loans

    Technology Can Help With Student Loans

    Paying student loans can be a difficult time for young professionals and even in older age. But many new marketplace lending services such as SoFI, CommonBond and Earnest have leveraged the surge ...
  5. Personal Finance

    Does It Pay To Go To College?

    College or not? There are smarter or lamer ways to decide, but this cool calculation shows the basic college boost to career earnings is a big one.
  6. Savings

    Grandparent’s Guide To A 529 College Savings Plan

    As a grandparent, you probably take pleasure in showering your grandkids with extravagances, but saving for their college education is a long-lasting gift.
  7. Investing

    Financial Gifts For Grads: Kindergarten To College

    If you really want to help your grad preparing for the future, consider a present that supports their long-term goals—an early start to financial planning.
  8. Personal Finance

    Protect Your Teen When They Work Over The Summer

    If your child is working a summer job, here are some rules you should know about what he or she is allowed to do.
  9. Credit & Loans

    Should You Care About The Rising Cost Of College?

    It’s nearly graduation season, so it’s time to weigh in on why you should care about rising college costs, paying for tuition and back student loans.
  10. Personal Finance

    Masters Degree Vs. Work Experience: Which One Is More Valuable?

    Some argue that a master's degree only worsens student's financial situations, but future earnings data shows there can be a real financial benefit.

You May Also Like

Hot Definitions
  1. Radner Equilibrium

    A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then ...
  2. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  3. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  4. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  5. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  6. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!