The Pell grant is awarded based on financial need.
The Pell grant is a form of federal student aid awarded to students who demonstrate financial need. As it is a type of grant, it does not have to be repaid. The amount received in a Pell grant is used primarily for the payment of costs associated with college or university attendance, such as tuition, books and other fees.
The Pell Grant
Unlike other forms of federal student aid, the Pell grant is not a loan. It therefore does not have to be repaid. It may be received in addition to other forms of financial aid such as Stafford loans, PLUS loans and private student loans. They are only awarded to those pursuing their first bachelor's degree. The Pell grant is awarded to those who demonstrate financial need, and to those whose parent or guardian died while on military service in Afghanistan or Iraq after September 11th, 2001.
Eligible recipients of the Pell Grant must be enrolled at least half time.
Pell Grant Amounts
For the 2011-2012 academic year, the maximum amount available for the Pell grant was $5,500 per student. This maximum amount changes year on year, depending on available funding. Not all students receive the maximum amount, however, as the cost of attendance and financial need are taken into account. The full amount is awarded to students under 24-years old whose parent or guardian died in Afghanistan or Iraq. For the 2010-2011 school year, the average Pell grant amount was estimated to be $3,705, according to the New America Foundation, a nonpartisan think-tank based in Washington D.C.
Applying for the Pell Grant
The Pell grant is awarded to students that are dependent on their family's income. Family income is assessed when completing the Free Application for Federal Aid (FAFSA). The FAFSA is completed for most forms of student aid, including all forms of federal student aid. A student is eligible if the total family income is less than $50,000 a year. The lower the family's total income, the more the student may receive in the form of a Pell grant.
Payment of the Pell Grant
For most students, the Pell grant is paid once a year. However, up to two consecutive Pell grants may be awarded in an academic year for those who wish to accelerate their degree. Payment may be accomplished in two ways. Either the Pell grant is sent directly to the university or college, who will use the money to pay for college expenses. The college will then reimburse the student with any remaining balance. Alternatively, the student may receive the Pell grant directly by means of a check.
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