The Grant Process

• If you qualify for a Pell Grant, the Department of Education doesn't send you the grant money directly. Instead, it provides the funding to your college's financial aid department, which disburses the funds. Schools must make payment or credit to your account each term, although the Department of Education grants your school wide leeway in the methods it uses to disburse the grant. Because of this, your financial aid department should spread your grant across four quarters automatically.
  
  

Your College's Policies

• Some colleges apply Pell Grant funds directly toward a student's tuition bill, while others provide students with disbursement checks and require them to use the funds appropriately. Your college's financial aid policies determine how it handles your Pell Grant money. The Education Department requires that your college apply your grant to your tuition bill or provide a disbursement check once a quarter.
  
  

Uses for Pell Grant Funds

• The Education Department provides Pell Grants---and all other types of its financial aid---to help students pay for college. You must spend Pell Grant disbursements accordingly on tuition, books and other expenses directly related to your education, such as child care for times when you're in class. You may not use grant funds to start a business, purchase a car or other non-educational purposes. If you use grant money on unapproved expenses, the Education Department will force you to return the grant or face charges of fraud.
  
  

Timing and Limitations of Pell Grants

• If you received your first Pell Grant after July 1, 2008, you may only receive grants for 18 semesters until you exhaust your eligibility for the program. If you plan to earn a bachelor's degree in three years by attending school during summer sessions and other non-traditional terms, you may qualify to receive two Pell Grant awards per term. If you receive Pell Grants on an accelerated pace, the number of quarters for which you may receive aid isn't affected.