Pell Grants

Most people do not dispute the value of a college or university education. College graduates are more likely to get hired, secure higher pay, and receive better benefits. However, the cost of higher education continues to increase beyond what most students can pay. A Government Pell Grant can help pay for higher education.

About two thirds (67%) of college students receive financial assistance through loans, scholarships, and grants. Pell Grants are federal government assistance given to low-income students to access college or select post-secondary education. The U.S. Department of Education reports that over 5,400 colleges and universities accept students with Pell Grants.

Most Government Pell Grants are for students pursuing baccalaureate (college) degrees, but there are Pell Grants available for select post college programs for teacher education or licensing. Pell grants are given directly to the student’s account at the institution, paid to the student directly, or a combination of both.

The amount of a Pell Grant award depends on a student’s need. Financial need is determined by a standard formula that Congress established. Elements to determine need:

Student income and assets (if the student is independent)
Family income, assets, and size (if the student is dependent)
Whether other family members are attending college
Cost of the higher education institution
Enrollment Status (full- or part time)

There is a maximum award for Government Pell Grants. For the 2011-2012 year, the maximum is reported as: $5,550 per student. This amount may change year to year, depending on the federal budget.

A Pell Grant can be a component of a student’s total financial aid package. A Pell Grant is a portion of money that is not a loan, but is direct financial assistance. Pell Grants do not need to be repaid, unlike loans that must be paid back. Government Pell Grants are only used help students pay for college or university tuition and related fees.

A full description of the formula and application process is on the Department of Education website (ED.gov). To secure a Government Pell Grant, a student must complete a Free Application for Federal Student Aid (FAFSA). The FAFSA is a requirement in not only winning a Pell Grant, but also getting education loans.

The FAFSA is filled out online and has strict deadlines for completion, but they vary by school. You must apply for a Pell Grant before you matriculate (begin) college or university. Deadlines are posted in the FAFSA site, but it is important to double check with your college or university about deadlines. By adhering the the proper process, you increase your chances of receiving a Government Pell Grant.