Federal Grants: Pell Grants
Federal Pell Grants are given to low-income undergraduate as well as some graduate students. These grants can be used at any one of the approximately 5400 postsecondary institutions that participate. The average award has been typically about $3000 with amounts ranging from under $500 to over $5000. The maximum grant per year is about $5500 but will increase yearly based on the cost-of-living index. Unlike some limited funding grants, Pell Grant recipients receive the full amount for which they qualify, as long as they meet all deadlines.
Who is Eligible?
U.S. Citizens, Permanent Residents and other eligible non-citizens can receive federal grants. Students can be full-time or part-time undergraduate students who do not already have a bachelor’s degree and some graduate students working towards teacher certification can receive grants.
Federal Pell Grant eligibility is based on a student’s Expected Family Contribution (EFC) which is calculated using information provided in the Free Application for Federal Student Aid (FAFSA). In recent years most grants have been going to students with family incomes of up to $60,000. Factors such as the number of family members in college and number of parents that work are also taken into consideration. Students who receive the Pell Grant must also maintain satisfactory academic progress as defined by the grant program.
How does a student apply?
Students should submit the Free Application for Federal Student Aid (FAFSA). This application will be used to assess the student’s eligibility for all types of federal aid as well as state and school aid. The student’s college will notify them if they are eligible for the Pell Grant and/or other financial aid.
How is the money disbursed?
The school determines how the grant is to be paid to the student. They may apply it directly to the student’s school costs, or pay directly to the student or a combination of both methods. Schools are required to disburse funds at least twice each academic year.
Pell Grant Tips
- Always submit the FAFSA - Students should submit the FAFSA even if they don’t think they will qualify for a Pell grant since other sources of aid are also based on the FAFSA.
- Annual FAFSA renewal – The FAFSA needs to be re-submitted every year to remain eligible for Pell Grants.
- Reduce account balances - If planning a significant purchase, the student should make the purchase before filing the FAFSA to reduce the bank balance on the application.
Resources:
Federal Grant Program Fact Sheet – Provides an overview of all Federal Grants including the Pell Grant.
U.S. Department of Education’s Federal Pell Grant Program Description – Provides an overview of the Pell Grant.
Federal Student Aid Handbook for the Pell Grant Program - Provides detailed information about the Pell Grant.
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