What is a Pell Grant?

The brainchild of Sen. Claiborne de Borda Pell (D-R.I.), the eponymous grant program — originally dubbed the Basic Educational Opportunity Grant — was created in 1972 to provide federal aid for low- and middle-income students to attend college. Recipients would not have to repay the award, which was not to exceed 50 percent of the cost of attendance. Since its inception, the Pell Grant has provided need-based financial aid to an estimated 80 million people, according to the Institute for College Access & Success .

How much is a Pell Grant?

The amount of the federal grant has changed over the years, and the maximum Pell award for the 2022-23 academic year is $6,895, according to the Education Department. The purchasing power of the grant has declined amid rising tuition. Whereas a Pell Grant covered more than three-quarters of the cost of a public four-year college in the 1970s, it now covers just over a quarter. As a result, students who rely on Pell Grant often borrow more than their peers.

Who is eligible for a Pell Grant?

The pool of eligible students has expanded over the years. Pell Grants are awarded to undergraduate students with exceptional financial need, which is determined by filling out the Free Application for Federal Student Aid, commonly known as the FAFSA. Most recipients come from families with incomes under $40,000 a year, according to the Institute for College Access & Success.

How many people have Pell Grants?

The White House said Pell Grant recipients make up 60 percent of the 43 million people who could benefit from its student loan forgiveness plan.

How do I know if I have a Pell Grant?

You can pull up your entire federal financial aid history through the Education Department’s Federal Student Aid website , which will indicate whether you were ever a grant recipient. If you don’t already have one, you will need to create an account.

Higher Education

What to know about Pell Grants

By Danielle Douglas-Gabriel

August 26, 2022 at 2:11 p.m. EDT

Biden announced $10,000 in relief for student loan borrowers making less than $125,000 annually, and an additional $10,000 for Pell Grant recipients. (Video: Michael Cadenhead/The Washington Post)

President Biden’s student loan forgiveness plan is expected to help up to 43 million borrowers, with recipients of federal Pell Grants set to get the biggest relief.

The plan will forgive up to $20,000 in federal student loans for borrowers who had received a Pell, a grant program that has helped millions of low-to-moderate income students attend college. Non-Pell recipients can receive up to $10,000 in forgiveness if they made less than $125,000, or under $250,000 for married couples and households.

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