How Do I know if I Have a Pell Grant?

A new element was added to President Biden's announcement on student debt reduction on Wednesday: recipients of Federal Pell Grants would have $20,000 in debt canceled.

Do I have a Pell Grant, you might now be wondering.

This is how to check.

1. Enter the Federal Student Aid website. This can be a different location from where you usually pay off your student loans.
2. A visual breakdown of your assistance account by "My Aid" should be displayed on your official FSA Dashboard (See below).
3. The chart needs to distinguish between "Loans" and "Grants" amounts. For more details and to find out if your funds are Pell Grants, click "View Details."

Screenshot from Federal Student Aid dashboard.

Before student loan repayments resume in January 2023, the administration said it will provide information on additional eligibility requirements or next actions for people who did obtain Pell Grants. Only those who made less than $125,000 (single people) or $250,000 (married couples) each year are eligible for the $20,000 debt forgiveness for Pell Grant winners and the standard $10,000 forgiveness for other students (married).

What is a Pell Grant, in case you're curious or have forgotten since you graduated?

According to the Federal Student Aid division of the U.S. Department of Education, undergraduate students who exhibit extreme financial need are often given a Federal Pell Grant. The sums awarded each year may vary depending on a range of elements, such as the cost of the student's education, whether they are enrolled full- or part-time, and the expected support from their families.

The maximum Federal Pell Grant payout for the current academic year is $6,895. Although Pell Grants are normally not reimbursed, the agency claims there are some instances where they are.

Following months of rumor, the Biden administration's plans to handle the nation's $1.6 trillion in student debt were finally revealed on Wednesday.

“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023,” early on Wednesday, Biden tweeted.

The White House said that borrowers with undergraduate loans will also be able to set a repayment ceiling of 5% of their monthly income.