No, the Pell Grant is an educational grant that the federal government offers only to those students who demonstrate exceptional financial need. The determination of exceptional financial need is based on the income and asset information you supply on the federal government's financial aid application, known as the FAFSA.

The main benefit of a Pell Grant is that it does not have to be repaid. For the academic year 2008/2009, the Pell Grant can range from $400 to $4,731, depending on your financial need. Pell Grants will gradually be increased over the next few years to a maximum $5,400 by the year 2012/13. Pell Grants are available only for undergraduates; graduate students are ineligible.

Even if you think that your financial situation may make you ineligible for a Pell Grant, you should apply anyway because many institutions will not consider you for other awards until they know your Pell status.

If you are eligible for a Pell Grant, the school can credit the funds to your account, write you a check, or combine these methods. The school is required to notify you in writing how much you will be receiving.