Could anyone explain how Pell Grants work for college?

I'm trying to make sense of financial aid and came across Pell Grants. Can someone explain how they work, like how do you qualify for them, and do they really make a big difference in paying for college?

Absolutely, I'd be happy to clarify how Pell Grants function. Pell Grants are a type of federal financial aid in the United States that is awarded to undergraduate students who display exceptional financial need and have not yet earned a bachelor's, graduate, or professional degree. Unlike loans, Pell Grants do not have to be repaid, making them highly attractive to eligible students.

To qualify, you need to fill out and submit the Free Application for Federal Student Aid (FAFSA), which assesses your family's financial situation. The amount you can receive changes yearly; for the 2022-2023 award year, the maximum Pell Grant amount is $6,895. But the actual amount you might get will depend on four factors: your Student Aid Index (SAI), the cost of attendance at your chosen institution, your status as a full-time or part-time student, and whether you plan to attend school for a full academic year or less.

Pell Grants can make a significant difference for many students. They directly reduce the amount you need to cover through work, loans, or other scholarships. Especially for students attending institutions with lower tuition fees, Pell Grants can cover a substantial portion of their college expenses.

For example, if you attend a community college or public university with a relatively low cost of attendance, your Pell Grant might cover a large portion of the tuition and fees. It might not cover the full cost of a more expensive private university, but it would still lower the overall amount you or your family would need to pay out-of-pocket or borrow.

Upon being awarded a Pell Grant, the funds are typically paid out by your school, which will apply the grant money to tuition, fees, room and board, or may pay you directly for books and related school expenses. It's definitely a pillar of federal financial aid worth exploring if you think you might qualify.