Everything you need to know about the Federal Pell Grant
According to the National College Attainment Network, $3.75 Billion goes unclaimed in Pell Grants.
The Federal Pell Grant is a need-based financial aid program in the United States that is designed to help low-income undergraduate students pursue higher education. The maximum award amount is $6,495 per year and it is issued by the U.S. Department of Education. To be eligible for the Federal Pell Grant, you need to complete the Free Application for Federal Student Aid (FAFSA), which opens on October 1st of each year. It is highly recommended to apply to FAFSA as soon as possible because of limited funds and your chances to receive the maximum amount of aid increase by submitting early.
Here are key points you need to know about the Pell Grant:
Purpose: The primary purpose of the Pell Grant is to provide financial assistance to students with demonstrated financial need to help them afford the costs of higher education.
Eligibility: Pell Grant eligibility is determined based on financial need, which is calculated using a standard formula established by the U.S. Congress. Factors such as family income, family size, and the number of family members attending college are considered in the calculation.
Application Process: To apply for a Pell Grant, students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine the Expected Family Contribution (EFC), which is subtracted from the cost of attendance to determine financial need.
Award Amount: Pell Grant awards vary based on financial need, the cost of attendance at the student's chosen institution, and whether the student is attending full-time or part-time. The maximum award amount is determined annually by the U.S. Department of Education.
Disbursement: Pell Grants are typically disbursed directly to the student's college or university. The school then applies the funds to the student's tuition, fees, and, if applicable, room and board. If there are any remaining funds after these expenses are covered, the school will issue a refund to the student.
Renewal: Students must reapply for the Pell Grant each academic year by submitting a new FAFSA. Renewal eligibility is reevaluated annually based on changes in financial circumstances.
Lifetime Eligibility: There is a limit to the total number of Pell Grant awards a student can receive. The current limit is the equivalent of 12 full-time semesters or approximately six years of full-time enrollment.
Crossover Period for Year-Round Pell: The Federal Pell Grant program has a crossover period, allowing eligible students to receive Pell Grant funds for up to 150% of the published program length. This is designed to accommodate students attending school year-round.
Post-Baccalaureate Eligibility: Pell Grants are generally available only to undergraduate students. Once a student has earned a bachelor's degree, they are no longer eligible for Pell Grants.
It's important to note that policies and regulations may change, so it's advisable to check with the U.S. Department of Education or the financial aid office at your institution for the most up-to-date information.