A Federal Pell Grant, unlike a loan, does not have to be repaid. Federal Pell Grants are usually awarded only to undergraduate students who have not earned a bachelor's or a professional degree. You are not eligible to receive a Federal Pell Grent if you are incarcerated in a federal or state penal institution or are subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense.