Friday, August 27, 2010

The Qualifying Income To Receive Pell Grants

You must fill out a Free Application for Federal Student Aid form to determine whether you are eligible for a Pell Grant.








The federal Pell Grant program is a government-run program that provides grants to undergraduate and certain postbaccalaureate students. Pell Grants are given to students based on need, and the amount of the grant varies on certain factors. All students who are eligible for a Pell Grant will receive one, and these grants do not have to be paid back.


How Do You Apply for a Pell Grant?


You must fill out the Free Application for Federal Student Aid (FAFSA) in order for your expected family contribution to be determined. You must file a FAFSA for each school year by the end of June before the start of the school year. State deadlines are normally much earlier than the federal deadline, so make sure you plan accordingly. You will be notified by mail or email if you are eligible to receive the Pell Grant.


What Factors Determine the Amount of the Pell Grant?


Pell Grants are determined by the student's expected family contribution, the tuition at the student's chosen institution, whether the student is full- or part-time and whether the student will attend school for a full academic year or less.








How Does the Government Determine Financial Need?


The Department of Education determines the student's expected family contribution using a formula based on the information provided in the FAFSA. According to the Department of Education, a student's expected family contribution is "the sum of: (1) a percentage of net income (remaining income after subtracting allowances for basic living expenses and taxes) and (2) a percentage of net assets (assets remaining after subtracting an asset protection allowance)."


The best case scenario is you will have a zero expected family contribution, because if you meet the other eligibility requirements, you will receive the full Pell Grant, which is $5,500 for the 2010-2011 school year.

Tags: Pell Grant, expected family, expected family contribution, family contribution, Pell Grants, school year, student expected