The costs associated with attending a college or university can present a financial barrier to low-income students, which may make it easier for students whose parents have greater financial means to receive education and acquire higher earning potential. The Pell Grant Program is administered by the U.S. Department of Education to provide education funding to low-income individuals and, therefore, help level the playing field.
Pell Grant Basics
The Pell Grant Program provides money to needy students that does not have to be paid back. The U.S. Department of Education states that the maximum Pell Grant for the 2010-11 award year (July 1, 2010, to June 30, 2011) is $5,550. The amounts students receive are based on financial need, the cost of the school the student is attending and whether the student is attending full-time or part-time. Pell Grants are typically only given to students who have not achieved a bachelor's degree or professional degree.
Full-Time Credit Hours
According to the Borough of Manhattan Community College, you must take a course load of 12 credit hours or more to be considered a full-time student for the Pell Grant Program. If you take at least 12 credit hours, you may be eligible for the maximum benefit of $5,550. Grant benefits awarded are split between semesters, so if you are awarded $5,550, you will receive $2,775 per semester.
Part-Time Credit Hours
There are several different part-time credit hour levels that impact the amount of money you receive from the Pell Grant Program. The Borough of Manhattan Community College says that students enrolled for at least nine but less than 12 credit hours are considered 3/4-time students and receive 75 percent of the full Pell Grant award. Students enrolled in at least six but less than nine credit hours are half-time and receive 50 percent of the full benefit while students enrolled in at least one but less than six credit hours are less than half-time students and only receive 25 percent of the full benefit amount.
Considerations
You have to attend a school and maintain enrollment to keep Pell Grant awards. Pell Grant awards are, however, transferable from one institution of higher education to another. Your school will decide distribute your Pell Grant award; it may give you your award in the form of a check or apply funds automatically to your school expenses.
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