There are three types of federal student aid available to college students: federal student loans, federal work-study options, and federal grants. Of the three options, federal grants offer students financial aid that does not need to be paid back, and Pell Grants are the foundation of the federal student grant program.
This article will explain Pell Grant awards, detail eligibility, and describe how to apply for funding.
Pell Grant Financial Aid Levels
Pell Grant awards are determined by the level of financial need demonstrated by an undergraduate student applying for financial aid. The financial resources of each applicant's family are measured by a calculation called "expected family contribution" (EFC). EFC is calculated by measuring a family's income, assets, family size, and the number of family members expected to be attending college or a professional career program. This calculation is done from information found on a student's Free Application for Federal Student Aid (FAFSA) form, which will be explained in the next section.
Pell Grant awards vary yearly. In the 2008-2009 school year, the maximum award amount was $4,731, and awards are usually within the $2,000 to $4,000 range. Along with the EFC, Pell Grant amounts are determined by the cost of attending a given school and whether a student will be enrolled part-time or full-time.
Pell Grants are paid directly to a student by his/her school each term either by sending a check to the student or by crediting the student's school account.
How to Apply for Pell Grant Funding
Applying for a Pell Grant is simple, as students who are eligible for federal student aid based upon a demonstrated financial need are automatically eligible to receive a Pell Grant.
To apply for a Pell Grant (or more accurately, to apply for federal student financial aid), students must complete the FAFSA form, which can be found at any financial aid office or online from the Department of Education. After the FAFSA form is processed by the Department of Education, students will receive a Student Aid Report (SAR).
The SAR will notify a student whether he/she has been ruled eligible for a Federal Pell Grant and detail how much a student is eligible to receive. A student's school will also receive this information, and funds are disbursed directly to the student from the host school.
Pell Grant Eligibility
As detailed in the above section, students must demonstrate a financial need on their FAFSA form to be eligible for a Pell Grant. However, there are other basic requirements of which students should be aware. Among these, students must:
- Be a U.S. citizen or an eligible permanent resident;
- Have a valid Social Security number;
- Comply with Selective Service registration (if you are a male between the ages of 18 and 25);
- Either be enrolled in an eligible degree program or have been accepted for enrollment;
- Meet the academic requirements set by their school in order to maintain Pell Grant funding.
It should be noted that Selective Service registration can be done via the FAFSA form for those who must register but have yet to do so.
Pell Grants and Federal Student Loans
Students who receive a Pell Grant are still eligible to apply for federal student loans to cover the costs of attending school. Low-income students who have been granted a Pell Grant, and who want to also apply for a subsidized Stafford Loan or a Perkins Loan, do not need to fill out a separate application, as the FAFSA form applies to all forms of federal student aid.
For more information, reference this Student Federal Aid publication, from which the information for this article was gleaned.
David Harris-Gershon - David Harris-Gershon – a blogger for Tikkun magazine and a freelance writer on Israel, the Middle East and America’s role in ...
