A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded usually only to undergraduate students who have not earned a bachelor's or a professional degree. Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added.

The maximum Pell Grant award for the 2012-13 award year (July 1, 2012 to June 30, 2013) is $5,550. The amount you are awarded is calculated from the information provided on the FAFSA and will depend on your financial need, your cost to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less. Note: The maximum award amount is given for any Pell Grant eligible student whose parent or guardian died as a result of military service in Iraq or Afghanistan after Sept.11, 2001. You must be under 24 years old or enrolled at least part-time in college at the time of your parent's or guardian's death.

The maximum amount of Pell Grand a student can receive each year is equal to 100% of the scheduled amount. The lifetime eligibility for Pell Grants is limited to a total of 12 full-time semesters. For more information and how to calculate the lifetime eligibility, go to http://studentaid.ed.gov/PORTALSWebApp/students/english/PellLimit.jsp.