Scholarships For College And School Grants | Money For Students | Student Financial Aid

The Federal Pell Grant Program, sponsored by the U.S. Department of Education, is one that provides funds for students demonstrating financial need in order to help them pay for their college education. Those who qualify receive a specific amount of money to finance their tuition each year, disbursed at the beginning of each term, and never have to pay it back. This is a significant difference from other federal student loans, such as the Perkins, PLUS, and Stafford loans. Although the Pell Grant no longer covers as many credit hours as it used to, the program remains a noteworthy source of financial aid to students in need of monetary help.

The Pell Grant is a direct grant given to students in need who either have not yet received their bachelor’s degree or, in some cases, those who are enrolled in certain postgraduate schools leading to teaching certification or licensure. Students must also be U.S. citizens, or eligible non-citizen, and must have earned a high school diploma or GED to qualify. Currently, those who qualify for the Federal Pell Grant may receive a maximum $5,800 towards their educational expenses.

The amount of monies awarded is determined by a student’s enrollment status, his family’s expected contribution towards tuition, the cost of attendance, whether the student is full-time or part-time, and whether or not the student attends for a full academic year. The student’s expected family contribution (EFC) is calculated by taking into account his parents’ income and assets, the student’s income, family size, and the number of other family members (excluding the parents) also enrolled in college or university. The majority of Pell Grants are awarded to students whose household income is less than $20,000 a year.

All of this information must be entered while filling out the Free Application for Federal Student Aid (FAFSA). Application to not only the Federal Pell Grant but to all federal and state programs is completed during this process. It is vital that those wishing to receive the Pell Grant complete the FAFSA on time and check dates for important deadlines.

A school will often credit a student’s Pell Grant to his school account or pay it to him directly via a check. Sometimes a school will employ a combination of both methods in awarding a student this grant. A student may only receive the Pell Grant once per award year and only from one school at a time.