Applying for a Pell Grant

Answer 1

The rising costs of college expenses has caused many students to seek for financial assistance from the federal government. The federal Pell Grant is a need-based education grant available to eligible low-income undergraduate students. To qualify for the Pell Grant, a student must complete the Free Application for Federal Student Aid and submit it to the Department of Education. A student is informed by her school whether she qualifies for the Pell Grant, and the amount to be awarded. The Pell Grant award can be used towards all college expenses, including tuition, books, and housing costs.

Eligibility

Eligibility for a Pell Grant is dependent upon a student's expected family contribution. The expected family contribution determines how much money the federal government expects a student's family to contribute toward educational expenses. The income and assets of the student and her parents are used to calculate the expected family contribution. A student is ineligible to receive a Pell Grant if her expected family contribution surpasses a certain level.

Pell Grant Award Amount

The award amount an individual receives in the form of a Pell Grant is determined by the student's financial need and cost of attendance. The student receives an award letter in the mail, which states the amount of aid granted. As of the 2011-2012 award year, the maximum Pell Grant amount a student can receive is $5,550. The enrollment status of a student also determines the award amount. Full-time students receive a larger award than part-time students. A student with a parent who died during military service in Afghanistan or Iraq after Sept.11, 2001 is also eligible for the full Pell Grant amount.

Disbursement

A Pell Grant is usually divided into two parts, one-half given in the fall semester and one-half given in the spring semester. The award is given to your school. Your school then applies the funds to your student account. In most cases, the amount of your tuition and related expenses are automatically deducted from the available funds. Any part of the award remaining is given to you as a financial aid refund.