What Happens to Your Pell Grant if the School Doesn't Use All the Money?
The federal government considers Pell Grants to be the foundation of need-based financial aid. When your school does not need the full amount of the Pell Grant to pay your tuition bill and other items the school bills you for, you get the rest of the grant to use for other costs related to attending school.
Other People Are Reading
-
Pell Grant Use
-
The federal government sends Pell Grant funds directly to your school. The school is allowed to apply the grant money directly toward your account for tuition, room, board and any other required fees. These costs often use up the full amount of the Pell Grant. However, some students who receive a lot of financial aid will have Pell Grant money remaining after their bill is paid with the school.
Pell Grant Check
-
The school must give you any Pell Grant money that remains after paying tuition, fees, room and board. The only exception is if you give the school written permission to leave the money in your account. This might occur if you can draw on the money in the account to buy books or other supplies on campus. The school usually disburses excess Pell Grant funds in the form of a check. Some schools also allow students to sign up for a bank transfer or get the Pell Grant refund in cash.
-
Timing
-
Each school has different policies for when to release excess Pell Grant funds. By federal law, the school cannot give students Pell Grant money any earlier than 10 days before the academic term begins. However, schools often wait until the first day of classes or the end of the drop/add period because the Pell Grant amount is based on the number of credits your are taking that semester. Contact your school's financial aid office to find out when to expect your Pell Grant check.
Use of Funds
-
By law, you can only use Pell Grant funds for qualified educational expenses. These include tuition, fees, housing, food, textbooks, school supplies, transportation to and from school and hiring someone to care for your dependents while you are in class or studying. All of these expenses are factored into the cost of attendance that your school and the federal government consider when awarding financial aid. Therefore, your total financial aid award will never exceed the cost of attending school. If you get a Pell Grant check, you must use the money for these expenses.
-
