Federal Pell Grants

The Federal Pell Grant is one of the various education grant programs that students can apply for to help pay for college tuition and education costs. Sponsored by the U.S. Department of Education, the Pell Grant is a program designed for low-income high school graduates and undergraduates based on financial need. Unlike a loan, the Pell Grant does not have to be repaid, making it one of the most sought-after types of financial aid offered through the federal government.

Qualifying for a Federal Pell Grant

Since Federal Pell Grants are designed to benefit those with the greatest financial need, there are two factors that are weighed heavily when it comes to qualifying. The first is the cost to attend the college of your choice. From tuition and books to meals and housing, these are the expenses you will be expected to cover when you enroll. The second is the EFC or Estimated Family Contribution. As a general rule, families with an income of $30,000 or less will have an EFC of zero and will most likely qualify for the maximum grant.

The Pell Grant Application Process

The most important thing to consider when applying for a Federal Pell Grant is whether or not you’re eligible. Applicants should be undergraduate students who have not earned a bachelor’s degree and can show financial need. Once you’ve determined that you’ve met the criteria, fill out a Free Application for Federal Student Aid (FAFSA). You can pick one up from your school counselor’s office or apply for it online. Your financial need and eligibility for a Pell Grant will be determined by the information you provide on this form. Make sure to apply early because money is given on a first-come, first-serve basis if you qualify.

Covering the Essential College Costs

The amount of money you receive from a Federal Pell Grant depends on your family’s income, the cost of attendance and whether you’re enrolled full or part time. The amount is also determined by your FAFSA. The maximum amount awarded for the 2010-2011 year is $5,550 per student. Your school can apply Pell Grant funds directly to your school costs, pay you directly in the form of a check, or a combination of the two. The school must tell you in writing how much you’re being awarded and when you’ll be paid.

Supplementing Your Pell Grant

Like scholarships and grants, the Federal Pell Grant is essentially free money that does not to be paid back. However, even if you’re awarded the full amount, it still may not be enough to cover all your expenses. In addition to the Federal Pell Grant, apply for other scholarship and grant opportunities. You may also need to consider private student loans for additional expenses such as books, supplies, meals, room and board, and transportation.