Welcome to College Confidential!

The leading college-bound community on the web

Sign Up For Free

Join for FREE, and start talking with other members, weighing in on community polls, and more.

Also, by registering and logging in you'll see fewer ads and pesky welcome messages (like this one!)

As a CC member, you can:

Leftover Pell Grant money questions

paragon24paragon24 Posts: 62Registered User Junior Member
edited September 2011 in Financial Aid & Scholarships
1) Does leftover Pell Grant money have to repaid in any form? At the CC I currently attend they deposit the money directly into a bank account of your choice; after the fall and spring semesters the money was intended to cover I had about half of it left over.

2) Is Pell Grant money considered income so I would have to report the leftovers on the financial aid form for my 2nd year? I ask this because it seems odd to me that you could have leftover grant money and the next financial aid form you fill out wouldn't consider it in its evaluation.

3) Can I use this leftover money to my liking and if so could it be taxable?

I understand it's not uncommon for students to have a significant amount of Pell Grant money leftover after tuition is covered, but I still feel uneasy about it and would greatly appreciate answers. Thanks.
Post edited by paragon24 on

Replies to: Leftover Pell Grant money questions

  • swimcatsmomswimcatsmom Posts: 14,871Registered User Senior Member
    Does leftover Pell Grant money have to repaid in any form? At the CC I currently attend they deposit the money directly into a bank account of your choice; after the fall and spring semesters the money was intended to cover I had about half of it left over.
    As long as you completed the whole semester and the number of credits your Pell grant was based on (full time, half time etc), you will not have to repay any Pell.
    2) Is Pell Grant money considered income so I would have to report the leftovers on the financial aid form for my 2nd year? I ask this because it seems odd to me that you could have leftover grant money and the next financial aid form you fill out wouldn't consider it in its evaluation.

    3) Can I use this leftover money to my liking and if so could it be taxable?

    Any Pell money used to pay unqualified expenses (anything other than tuition/fees/required books) is taxable income to the student for federal tax purposes (and possibly state, depending on the state). Whether you will actually owe taxes will depend on your total income including any taxable scholarships/grants, + earned income, work study etc.

    If you have sufficient income to be required to file a return, any taxable scholarship/grant (including pell) money will be included in your AGI on your tax return. The AGI from the tax return is reported on FAFSA. Then you also report any part of the AGI that is taxable grant/scholarships in another part of FAFSA where it asks about work study income, taxable grants etc. This figure is deducted from income by the EFC formula so it does not affect your EFC.

    If you are not required to file a return (because your total income is not high enough), you do not report the taxable scholarship/grant money on FAFSA.
Sign In or Register to comment.