Federal Aid- Pell Grants

For those wishing to attend college and need financial assistance at the same time, the Pell Grant is generally one of the first types of aid offered. The United States Federal Government offers student grants and within the country, it is one of the largest federal aid programs based on need. The Pell Grant, also known as Basic Educational Opportunity Grant, got its name from Claiborne Pell, a United States Senator.

 

The Pell Grant is one of the most sought after grants by low-income students  and their families who want to attend college.  At this point in time, the maximum allowed available grant is $4,050, although new legislature will increase the grant amount to $4,310 come July 1^st, 2007. The cost of education continues to rise; however, within the last twenty or so years, this is the first increase in the maximum allotment for this grant.

 

 

The Pell Grant is available to any student studying at an undergraduate level, in which a degree has not yet been earned. However, it has also been made available to those seeking a teaching certificate, even after receiving their bachelor's degree. What is more, students applying for the Pell Grant will have to prove financial need.

To determine this need, a formula for calculation is used by the Department of Education. This formula, designed by congress, is designed to establish the need for financial aid. After careful evaluation, an SAR (Student Aid Report) will be designed especially for the student, which will then confirm or deny student eligibility. The form you need to fill out to determine this is known as the FAFSA (Free Application for Federal Student Aid). The SAR is used to determine eligibility for not only the Pell grant, but other grants and student aid as well.

 

Students enrolled half or full time are eligible to receive the Pell Grant. However, it is important to keep in mind that the award amount will depend upon your enrollment status, as well as how much your college attendance will cost in full. Typically, this grant is not used as a stand alone financial aid. Generally, it is combined with other types of grants and loans. 

 

 

There are several ways a Pell Grant is awarded. First, the Federal Government may issue a check directly to your school to pay for your education on your behalf.  Another way students may receive funds from a Pell Grant is in the form of a check sent in the student's name to be applied to tuition, as well as textbooks and other costs. The way the grant is applied typically depends on the school and how they wish to proceed with the grant. For the most part, the grant is divided and handed out on a per semester basis.

 

 

 

There are many enrollment and GPA requirements for continuing eligibility with the Pell Grant. It is important to do your research and understand what the minimum requirements are for you to keep getting the financial assistance.