The Difference Between FAFSA and Pell Grants

FAFSA and Pell Grants Are Not the Same Thing

FAFSA is the form you fill out. Pell Grant is one type of money you might receive after you submit it. Think of FAFSA as the process that opens the door to federal student aid, and a Pell Grant as one of several possible outcomes on the other side of that door.

When you complete the FAFSA (Free process for Federal Student Aid), you are telling the U.S. Department of Education about your family's income, assets, and household size. The department uses that information to calculate your Expected Family Contribution — the amount your family is considered able to pay toward college. Based on that number and the cost of the school you plan to attend, you become may be able to access for different types of aid.

A Pell Grant is a federal grant specifically for undergraduate students from low- to moderate-income families. It does not have to be repaid. But you will not automatically receive a Pell Grant just because you filed FAFSA. Your income level and enrollment status determine whether you receive one, and if so, how much.

Key Takeaways

• FAFSA is the required form that determines your financial need; a Pell Grant is one type of aid you may receive based on that form.
• You must file FAFSA to be considered for a Pell Grant, but filing FAFSA does not may provide you will receive one.
• Pell Grants are limited to undergraduate students whose family income falls below a certain threshold, which changes each year.
• FAFSA also opens the door to loans, work-study, and other grants that are separate from Pell Grants.

What FAFSA Does

FAFSA collects information and calculates your financial need. It is the gateway form for all federal student aid programs. Without filing FAFSA, you cannot receive federal grants, federal loans, or federal work-study.

The form asks for tax information, bank balances, and details about your household. Schools use your FAFSA results to build a financial aid package tailored to you. That package might include grants, loans, work-study, or a combination of all three.

FAFSA itself does not give you money. It generates a number — your Expected Family Contribution — that schools use to decide how much aid to offer you.

What a Pell Grant Is

A Pell Grant is a specific federal grant for undergraduate students. Unlike loans, you do not repay it. The maximum Pell Grant amount changes each year; for the 2024–2025 academic year, the maximum is $7,395, though your actual award will likely be less.

To receive a Pell Grant, you must meet several conditions: you must be a U.S. citizen or may be able to access noncitizen, enrolled at least half-time in an undergraduate program, and have a family income below the income limit set by the federal government that year. The income threshold varies, so a family that qualifies one year might not may have access to the next if their income rises.

Your school's financial aid office determines your Pell Grant amount based on your Expected Family Contribution, the cost of attendance at your school, and your enrollment status (full-time or part-time).

Other Aid You Might Receive Instead of or Alongside a Pell Grant

FAFSA opens the door to several types of aid beyond Pell Grants. Federal loans — including Direct Subsidized Loans and Direct Unsubsidized Loans — are available to students regardless of income, though you must repay them with interest. Federal work-study is a program that pays you to work part-time on or near campus, and it is reserved for students with financial need.

Many states and individual colleges also offer their own grants based on FAFSA information. These are separate from Pell Grants and have their own income limits and requirements. Some schools offer merit-based aid that does not depend on FAFSA at all, though filing FAFSA is still required to receive any federal aid.

Your financial aid package is built from all available sources. A student might receive a Pell Grant, a state grant, a school grant, and a federal loan all in the same package.

How to Know If You Will Receive a Pell Grant

After you file FAFSA, your school's financial aid office will send you a financial aid offer letter. This letter lists every type of aid you are being offered, including whether a Pell Grant is included and for how much.

You will not know your Pell Grant amount until after FAFSA has been processed and your school has reviewed your information. Processing typically takes a few weeks, though it can take longer if FAFSA needs to verify your information.

If your family income is above the Pell Grant income limit for that year, you will not receive a Pell Grant, but you may still receive other federal aid such as loans or work-study. Your financial aid office can explain what you do may have access to for.

Common Confusion Between FAFSA and Pell Grants

Many students and families use the terms interchangeably, which creates confusion. Saying "I filed for a Pell Grant" is technically inaccurate — you file FAFSA, and then you may or may not receive a Pell Grant based on the results.

Another common misunderstanding is that FAFSA guarantees aid. Filing FAFSA does not may provide you will receive any money. It determines your financial need and opens the door to aid programs, but your actual aid depends on your income, your school's resources, and the specific programs you may have access to for.

Some students also believe that a Pell Grant is the only federal aid available. In reality, Pell Grants are one option among many. Students who do not may have access to for a Pell Grant can still receive federal loans, and students who do may have access to for a Pell Grant often receive additional aid on top of it.

Frequently Asked Questions

Do I have to file FAFSA to get a Pell Grant?

Yes. FAFSA is the only way to explore for a Pell Grant. Without filing FAFSA, you cannot receive any federal student aid, including Pell Grants. Your school cannot award you a Pell Grant based on any other process or form.

Can I get a Pell Grant if my family makes too much money?

No. Pell Grants are limited to students whose family income is below a certain threshold. That threshold changes each year and depends partly on family size. If your family income exceeds the limit, you will not receive a Pell Grant, though you may still receive federal loans or other aid.

What if I file FAFSA but do not receive a Pell Grant?

You may still receive other federal aid. Your financial aid office will review your FAFSA results and offer you loans, work-study, or other grants you do may have access to for. Contact your school's financial aid office to understand what aid is available to you.

Can I receive a Pell Grant and other grants at the same time?

Yes. Many students receive a Pell Grant plus a state grant, a school grant, or both. Your financial aid package can include multiple grants, loans, and work-study. Your school will coordinate all of these so that your total aid does not exceed the cost of attendance.

Does the Pell Grant amount stay the same every year?

No. The maximum Pell Grant amount is set by Congress and changes each year. Your individual award may also change if your family income changes, your enrollment status changes, or you move to a different school. You must file FAFSA each year to receive aid.