Federal Pell Grant Limit

Nearly two-thirds of full-time students receive financial aid, according to the College Board. The United States Department of Education regulates Pell grants for college students. A Pell grant does not have to be repaid, and is based on need. The maximum limit of a Pell grant changes from year to year and depends on the number of college hours a student takes.

Qualification

• Qualification for a Pell grant depends on student need and income sources, including the expected family contribution (EFC). The EFC calculations come from information provided for the FAFSA, or Free Application for Federal Student Aid. All federal and many state agencies use the FAFSA to determine student aid, and most universities require completion of the form for any financial aid consideration.

  Pell grant qualifications require a high-school diploma or GED. The applicant must not already have a four-year college degree.

Size

• The size of any Pell grant is directly related to need and EFC calculations. If you have no family contribution, the maximum Pell grant award in 2010 is $5,550 for a full-time student for two semesters of college. A student may apply for a Pell grant for a summer semester and receive funding in addition to the maximum of $5,550.

  Once you complete the FAFSA and obtain an EFC score, you can use a Pell grant calculator such as the one at the University of Baltimore website to calculate your Pell grant limit based on the EFC score and the number of credit hours you intend to take.

Features

• The basis for a Pell grant comes from the number of credit hours you pursue, and credit hours are counted from the end of the drop/add period at your university. The United States Department of Education distributes Pell grant funds to the college or university. The school applies the funds directly to tuition and fees or sends the funds to the recipient, and the recipient pays the tuition and fees.

Considerations

• You must complete the courses or you may have to repay the Pell grant. You will put future Pell grant funds in jeopardy if you do not complete the coursework. Pell grant payments arrive in October for the fall term, so do not count on your Pell grant for books.

Misconceptions

• You can enroll in classes at more than one college or university at a time, but you cannot collect Pell grant funds from more than one school at a time. You will need additional funding, as the Pell grant does not pay enough to support you, and you promise to use it only for school expenses.