Pell Grants are funded by the federal government. Unlike student loans, they do not have to be repaid. This program has been developed to assist low income undergraduate students (though certain post-Baccalaureate programs are eligible) to pay for a post-secondary education that may not have been possible without the financial assistance. Potential grant recipients are chosen by the grant program administrators using a need-based formula.
Pell Grants can be used to help defray a student's tuition fees at one of the approximately 5,400 colleges or universities who participate in the program. Students, however, may not apply for it to help pay for more than one school simultaneously. For the award year of 2010-2011, the maximum award for a Pell Grant is $5,550.
Federal Pell Grants are paid to the student directly through the participating school the student intends to attend. Specifically, the student must be seeking his or her first Bachelor's degree or a graduate degree that will lead to a teacher's certification or licensure. The college or university can choose to credit the student's school account or pay the student directly, usually by the issuance of a check
The amount available from an approved grant is dependent on predetermined criteria. In order to be considered for eligibility, a potential recipient must complete and submit a Free Application for Federal Student Aid (FAFSA). The Department of Education will evaluate a student's eligibility based on: the tuition cost of the school, the expected contribution of a student and his or her family (known as EFC), whether the student attends for a full academic year or less, as well as the enrollment status of the student (be it full or part-time).
Eligibility is determined by applying a formula that was established by Congress. The financial computation uses the data from the FAFSA to determine a family's EFC. Fundamentally, the formula uses the student's income, the parent's income and assets, the number of family members currently attending post-secondary institutions, and the family's size.
Specifically, the EFC adds the percentage of net assets (those that remain after subtracting an asset protection allowance) to the percentage of net income that remains after subtracting fundamental living expenses and applicable taxes. The calculations are somewhat complex, but eventually, the student's eligibility is provided to the student (via SAR - a Student Aid Report), and the school (via the Institutional Student Information Record - ISIR). Additionally, the Pell Grant 's written notice will advise each as to the student's EFC.
Pell Grants offer a significant amount of financial assistance for students across the country. In the year 2010, the total amount of funds available to eligible participants was $32,295,226,000. This amount does not represent the actual monies awarded, just the money that is available for eligible students. The number of anticipated new awards for this time period was over $8,000,000 with an average new award of $3,865 per student.
A Pell Grant is monetary assistance from by the federal government that is given to students who need help paying for their college education. College grants are limited to students who can demonstrate a real need when seeking a post-secondary degree through participating institutions and online schools. Students who wish to determine their eligibility should submit a FASFA to the Department of Education so their financial scenario can be evaluated, and so they can be awarded what they deserve. |
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