The beauty of the Federal Pell Grant is its portability. If a student applies, demonstrates financial need, and meets all of the eligibility criteria, he or she will receive a Federal Pell Grant at any eligible school attended. Receipt of a Federal Pell Grant does not depend upon the availability of funds at a particular school.

Eligibility for a Federal Pell Grant is determined according to Federal Methodology which computes an Expected Family Contribution (EFC). The aid administrator at the school the student attends must calculate the actual amount of the student's award based upon the student's Expected Family Contribution (EFC), cost of attendance, and enrollment status. Less-than-half-time students may also be eligible for Federal Pell Grants.

The amount of the Federal Pell Grant depends in part on the amount that Congress appropriates for the program. For example, the authorized maximum for the award year 1997-98 (July 1, 1997 through June 30, 1998) was $4,500; however, the actual maximum appropriations was $2,700.

Eligibility or ineligibility for a Federal Pell Grant may directly affect a student's eligibility for other aid, but, it is not uncommon for a student to be ineligible for Pell Grant yet still be eligible for other types of federal aid. The total amount of aid a student receives, including a Federal Pell Grant, cannot exceed the student's cost of attendance. The Federal Pell Grant is generally considered the "foundation" of the aid package. As with all other federal aid programs, students must reapply for a Federal Pell Grant every school (or academic) year.