Requirements
The federal government issues Pell Grants to students who demonstrate need as determined through a standard formula. Students must also have a high school diploma or GED or be able to benefit from a training course. They must be U.S. citizens with good grades and a valid Social Security number and be able to certify funds will only be used for education. The student must certify that she is not in default on any student loans. A male between 18 and 25 years must register with Selective Service.
Most grants are awarded to undergraduates working towards a first degree; however certain post-baccalaureate programs qualify.
Applying for the Pell Grant
The need for the Pell Grant is determined by the U.S. Department of Education using a standard formula, developed by Congress. Applicants may apply via Free Application for Federal Student Aid, also known as FAFSA (see Resources).
The formula will calculate an expected family contribution. This number, also known as EFC, will determine eligibility. The higher the EFC, the lower the chances of receiving funds, according to PellGrantInformation.com.
The EFC is the sum of the percentage of net income and the percentage of net assests. Factors used in the calculation of EFC are the student's income and assets if the student is independent, the parents' income and assets if the student is dependent, the family's household size, and the number of family members excluding parents attending postsecondary institutions.
After filing a FAFSA, expect to receive a Student Aid Report, also known as SAR, and the college or institution will receive an Institutional Student Information Record, also known as a ISIR, which will notify the student if he is eligible.
Most Pell Grants are distributed to families with annual incomes of less than $20,000. However, students with annual family incomes of more than $20,000 should still apply because funds are awarded to families with incomes up to $50,000.
Receiving Funds
Funds are distributed in different ways. Some are sent directly to qualifying schools, and others are dispersed by check. Pell Grants are usable at any one of approximately 5,400 participating postsecondary institutions.
The actual amount a qualified student receives is based on the EFC. Students can expect to receive funds up to $5,500.
If you know your EFC number, you can see how much you should expect to receive by referencing Pell Grant Information.com's award schedule chart (see Resources).
For example, if you are in school full time with an EFC between 301-400, you will get $2,190.50. If you are in school part time with the same EFC number, you would get $1,095.50.
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