5 Benefits of a Federal Pell Grant

A Federal Pell Grant is a loan awarded to low-income, eligible students who need money for college.

Benefits of a Pell Grant

Getting a Pell Grant has several benefits:

  • Applying is a Snap - Each Pell Grant applicant must fill out a Free Application for Federal Student Aid (FAFSA). This application is available in most libraries, secondary and post-secondary schools, and government agencies. You can also download the application online.
  • Low Interest Rates - Student loans, such as the Pell Grant, generally have lower interest rates than consumer or private loans.
  • Flexible Terms - A Pell Grant has flexible terms. Students do not have to repay the loan until after they graduate.
  • Receive Money When You Need It Most - Qualified students receive Federal Pell Grant funds at least once per term (i.e. semester or quarter).
  • Funds Are Transferable - If an eligible student transfers to another school, he or she may still receive financial aid at the other institution. Students, however, may not receive Pell Grant funds for more than one institution at a time.

Who is Eligible?

FAFSA determines each student's loan eligibility and financial need. A student's loan amount depends on several factors, such as total family income, family size, how long the student will attend the institution, the cost of attendance, and whether the student is attending full- or part-time.

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