This report describes Pell Grant recipients who began postsecondary education in 1995-96 and compares their postsecondary outcomes 3 years later with low- and middle-income students who did not receive a Pell Grant. In examining outcomes, high school academic preparation and factors that place students at risk of not finishing postsecondary education were taken into consideration. Despite the finding that Pell Grant recipients were less prepared academically and had more risk factors, the analysis could not detect a difference in the rate of persistence between Pell Grant recipients and their nonrecipient counterparts, either among those enrolled in all 4-year institutions or all less-than-4-year institutions.