The maximum value of Pell Grants, a form of student aid for low-income college students, is set to increase by $500 to around $7,400. This increase was included in a recently signed $1.7 trillion bill by President Biden, according to a report by The US Sun on January 3, 2023.
Pell Grants, which were created in 1972, provide support for nearly 7 million students each year, or about one-third of all undergraduates. These grants do not need to be repaid and have helped 80 million low-income students attend college.
To qualify for a Pell Grant, students must fill out a Free Application for Federal Student Aid (FAFSA). The information provided in this application is used to determine an applicant’s expected family contribution, which is then used to determine eligibility for the grant. Most recipients of Pell Grants are undergraduate students who do not already have a college degree, according to The US Sun.
The federal deadline to apply for the current academic year has passed, but students have until June 30, 2023, to apply for the 2023-2024 academic year.
In addition to increasing the maximum value of Pell Grants, the $1.7 trillion bill also funds medical research, veteran health care, disaster recovery, and assistance to Ukraine, based on the report by Politico on December 21, 2022. It also prevents a partial government shutdown by funding ongoing government operations through the end of the federal budget year. This marks the largest increase in the maximum value of Pell Grants in the past decade.\