The Pell Grant

A PELL GRANT FOR STUDENT ASSISTANCE...

Learn About This Federal Program That Offers Financing for Students

There are many potential sources for college students offering financial aid, and one that might be able to help you is the Federal Pell Grant. This grant is obtained based upon income as a need-based financial aid, and unlike a loan, the money does not have to be repaid. Eligible students receive a specified amount each year under this program.

Grant Eligibility

A standard formula is used to evaluate the information a student supplies when applying for the grant through the The U.S. Department of Education. This formula produces an Expected Family Contribution (EFC) number, which determines if the student is eligible for the grant.

Others factors include:

• All applicants must be undergraduate students who have not earned a bachelor's degree.
  

• Each applicant must be a U.S. citizen, or an eligible non-citizen. 
  

• Must have a high school diploma or a GED or to demonstrate the ability to benefit from the program.

Award Amount

The maximum Pell Grant for the 2010–11 award year is $5,550. The amount of the grant depends on both the student's EFC (see above) and several other factors which are:

• The student's cost of attendance (tuition and fees, room and board, books, supplies, and so on).
  

• The amount oftime the student attends school (whether the student goes to school for a full academic year or less and whether the student is full-time or part-time).
  

An eligible part-time student can receive this grant. The amount awarded, however, will be less than for a full-time student. An applicant may receive only one of these grants in an award year and may not receive additional Pell Grant funds from more than one school at a time.

Disbursement

A school may either:

• credit Pell Grant funds to the student's school account
  

• pay the student directly (usually by check)
  

• use a combination of these two methods.
  

The school must notify the student in writing of theamount of the grant.  They must also notify how and when payments will be made. Schools must pay at least once per term, whether that is a semester, trimester, or quarter. Schools that don't use formally defined, traditional terms must pay the student at least twice per academic year.

Time Limit

Students who received their first Pell Grant on or after July 1, 2008 are limited to 18 semesters, or their equivalent, of Pell Grants. Students can receive up to two of these grants in one award year if they wish to accelerate their course work.

How and When to Apply

Students can apply for not only Pell Grants but all federal, state, and some institutional financial aid programs by completing the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. Students can request a paper FAFSA from the Federal Student AidInformation Center (FSAIC) at (800) 4-FED-AID (433-3243). Students should check with the college or university of their choosing to find out the college's preferred filing deadline for the FAFSA.

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