Do You Get Leftover Pell Grant Money?

The Federal Pell Grant program provides financial assistance for students pursuing higher education. This federal grant is designed primarily for undergraduate students who demonstrate significant financial need, helping to make college more accessible. Unlike student loans, a Pell Grant generally does not require repayment, which can substantially reduce the financial burden of pursuing a degree.

How Pell Grant Funds are Applied by Your School

Educational institutions handle Pell Grant funds. Once a student’s eligibility is determined through the Free Application for Federal Student Aid (FAFSA), the grant funds are sent directly to the school. The institution first applies these funds to a student’s direct educational costs, which are charges billed by the school, including tuition, mandatory fees, and, if applicable, on-campus room and board. This process ensures that the most immediate and substantial expenses of attending college are covered first. The school’s financial aid office is responsible for crediting the Pell Grant award to the student’s account to offset these institutional charges, and after these direct costs are satisfied, any remaining balance from the Pell Grant is then considered “leftover” money.

Receiving Your Remaining Pell Grant Money

Should the Pell Grant amount exceed the direct educational costs, the remaining balance is paid directly to the student. Schools employ various methods for disbursing these funds, which can include direct deposit into a student’s personal bank account, the issuance of a physical check, or loading the funds onto a prepaid debit card. The specific method used is determined by the individual institution’s policies. Federal regulations stipulate that schools must disburse these funds within 14 days of the Pell Grant being credited to the student’s account or within 14 days of the first day of classes for the payment period, whichever is later, ensuring students have access to their funds to cover other necessary expenses. Institutions are required to provide written notification to students detailing the amount of their award and the specific method and timing of payment.

What You Can Use Remaining Funds For

Once a student receives the remaining Pell Grant money, these funds are intended to cover other education-related expenses not directly billed by the school, providing students with flexibility in managing their costs of attendance. Permissible uses extend beyond tuition and fees to include other educational necessities. These additional expenses can encompass the cost of books, required supplies, and equipment needed for courses. Funds may also be used for transportation costs, such as commuting to campus. Furthermore, the remaining grant money can help cover living expenses, including off-campus rent, utilities, and personal expenses incurred while attending school, and students have discretion over how these funds are spent, but the purpose is to support their educational pursuits.