A college education may be less expensive than you think. Federal Pell Grants provide low-income students with a source of college funding that does not have to be repaid. The majority of student aid comes from federal education loans and grants, according to the College Board. You may qualify for a Pell Grant and attend college or vocational school with free assistance.
Requirements
A student applying for a Pell Grant must have a high school diploma or GED, and acceptance from a college, university or trade school. FAFSA, or Free Application for Federal Student Aid, is the form a student must use to apply for federal funds, including Pell Grants.
To be eligible for federal aid, such as a Pell Grant, you must submit the online form by June 30 for fall enrollment. However, because the colleges and universities use FAFSA to determine the recipients of other scholarships and aid, you should apply by your school's financial aid application deadline.
Expected Family Contribution
The FAFSA identifies students who qualify and can benefit from a Pell Grant through an analysis of available finances, including expected family contribution or EFC. Students independent of parents may have no EFC, qualifying them for the maximum Pell Grant. This is federal grant money and does not require repayment if the student completes the coursework. Once the student completes the FAFSA, it takes about four weeks to receive the EFC figures with the student aid report.
Funding Amount
The maximum Pell Grant in 2010 is $5,550 for the school year or $2,775 per semester for a full-time student. After the first successful year, a student may apply for a Pell 2 Grant for additional coursework for a summer semester. The U.S. Department of Education awards Pell Grants for a maximum of 18 semesters, reports the College Board, but students who have a degree are not eligible. Successful completion of the previous semester allows for a new award. You must apply and qualify for a Pell Grant each year.
Pell Grant funds may be less in future years, according to Bankrate.com -- possibly $300 less for the 2011-2012 school year. New legislation may increase or reduce Pell Grant funding at any time.
Considerations
Pell Grants come with conditions. You must complete your classes or you may have to pay the grant money back. The Department of Education provides Pell Grant funding through the college or university, and the school may apply the funds to tuition and fees, or it may send the funds to you directly so that you can pay your tuition and fees. You must agree to use the funds only for school purposes. Pell Grant funding arrives after the school's class drop/add cutoff date, as this date determines the final number of semester hours you are taking. This number affects the amount of your grant.
Misconceptions
A Pell Grant will not pay all your college expenses. You also need funding for class requirements and books as well as living expenses. With Pell Grants paid after the add/drop date, you'll need to have funds to get started. Some colleges, such as Borough of Manhattan Community College, will advance funding for books. You may attend two colleges at the same time, but you cannot claim Pell Grants from different schools at the same time.
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