For more than 50 years, federal Pell Grants have been a popular way for students like you to pay for college. If you attend Campus and are eligible for a full Pell Grant, it will cover your full tuition, with no out-of-pocket costs. Nationwide, some 7 million students annually receive such a grant—about a third of all undergrads. However, there are still some misunderstandings about this funding source, including qualifications for getting one, Pell lifetime eligibility, and more.
Here are the top 11 myths about Pell Grants—debunked.
What is a Pell Grant?
Pell Grants make it possible for just about everyone to get a college education. What’s more, because they are grants, you don’t have to repay them. You do have to make sure you use the money for school-related expenses though. These include tuition and fees, books, technology expenses, transportation to and from school, and supplies. Even better, the money is tax free, so you don’t have to worry about Uncle Sam coming after you—as long as you use the money for eligible school costs.
Applying for a Federal Pell Grant
To apply for a Pell Grant, you must complete and submit a Free Application for Federal Student Aid (FAFSA). You’ll then be notified of your eligibility and award amount. To remain eligible, you must submit the form each year you’re in school. To qualify for a Pell Grant, you must be a U.S. citizen, or eligible noncitizen, and hold neither a bachelor’s, graduate, or professional degree. You must also show financial need, although that’s not the only consideration.
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What are Top Myths About Pell Grants?
There are some common misconceptions about Pell Grants that should be cleared up. Those include:
The grants are just for students with excellent grades.
To the contrary, Pell Grants are awarded not on academic performance, but on financial need. However, grantees must maintain satisfactory academic standing.
You are ineligible if your family earns too much.
Qualifications for Pell Grant depend on a number of factors, including family income. However, your household size and the number of family members in college are also considered. This means that even middle-income families can apply.
You are only required to submit a FAFSA once.
To receive a Pell Grant or other types of financial aid, you must submit a FAFSA every year you’re in school.
Pell Grants cover all college costs.
Generally, these grants help lower costs but rarely cover all tuition or expenses. An exception is the online community college Campus, with tuition below the Pell Grant maximum—$7,395 for the 2024-2025 school year.
Pell Grants are exclusively for first-year students.
Nope. If you meet eligibility criteria, grants are available to undergraduate students each year of their degree programs.
Part-time students don't qualify.
Part-time students may, indeed, be eligible. But your enrollment status will affect how much aid you’ll be offered.
Pell Grants never need to be repaid.
While that’s true in general, repayment may be required in some circumstances, such as if you fail to progress academically or withdraw from school early.
You may only use Pell Grants at public colleges.
Pell Grants May be used at any eligible school, including private and community colleges.
The FAFSA only determines eligibility for need-based grants such as the Pell Grant.
This is also untrue. Submitting an FAFSA can also yield merit-based aid and other financial resources such as loans and work-study.
If you drop out of school, you forever lose Pell Grant eligibility.
This is also wrong. You may regain eligibility if you re-enroll and meet academic progress standards.
Pell Grants offer unlimited eligibility.
That’s a myth. Under federal law, Pell Grant recipients are subject to a lifetime eligibility limit that’s equal to six years—or 12 semesters—of full-time enrollment. This limit is measured as 600% of what’s called Lifetime Eligibility Used.
In Summary
Over the years, the Pell Grant program has helped millions of students pay for their undergraduate education. Likely, untold more don’t apply for a grant due to widespread myths. Now you know the truth about the program. And remember, if you’re eligible for a federal Pell Grant, Campus caps tuition at the grant program’s maximum. This means that most students can attend with no out-of-pocket costs. Apply to Campus today.
