subject: Understanding The Federal Pell Grant Program [print this page] Federal Pell Grants are the most widely available type of grant program for undergraduate students. Unlike the Federal loan programs such as:
* Stafford
* Perkins
* PLUS
Pell Grant awards never need to be repaid.
Federal Pell Grants are made available to students based on a number of factors, all of which are connected to a student's "Expected Family Contribution" (EFC). In other words, Pell Grants are given to students who demonstrate a significant financial need.
Award Limits
The maximum Pell Grant award can change annually based on the amount of Federal funds made available for the program. The percentage of this maximum amount that a student receives is directly affected factors such as:
* The student's Expected Family Contribution (EFC)
* Cost of Attendance (COA)
* Attendance Status (full-time, half-time, etc.)
For the 2009-2010 school year, the maximum Pell Grant award is $5,350.
Unlike many of the Federal loan programs that have lifetime caps on borrowing, the Pell Grant does not currently have a lifetime maximum on awards. As long as a student is pursuing their first bachelor's degree and is otherwise eligible, they can receive Pell Grant funds.
Pell Grants and the Expected Family Contribution (EFC)
Federal Pell Grants are awarded to individuals based on their Expected Family Contribution (EFC), which is calculated using the assets and income of both the student and their parents. As a student's Expected Family Contribution rises, their potential Pell Grant amount decreases. Above a certain EFC level, no Pell Grant will be awarded.
For the 2009-2010 school year, the maximum EFC level that can still receive a partial Pell Grant is $4,617.
Pell Grants and the Cost of Attendance (COA)
Pell Grant award amounts are affected by a student's Cost of Attendance for their college or university. The greater the Cost of Attendance, the closer the student will get to receiving the maximum Pell Grant amount.
For the 2009-2010 school year, the minimum Cost of Attendance required to receive the full Pell Grant amount is $4,860.
Pell Grants and Student Status
Pell Grant award amounts are also affected by a student's attendance status. Full-time students are eligible to receive the largest grant amounts, with three-quarter, half-time, and less than half-time students receiving less. It's worth noting that the Pell Grant is one of the few programs that makes money available to students attending less than half-time.
Pell Grants for Graduate Students
Pell Grants are primarily available to undergraduate students. However, certain graduate teacher credentialing programs may also be eligible.
How to apply for a Federal Pell Grant:
To be considered for a Pell Grant, you must complete a FAFSA form. Completing this form will help determine your eligibility for other loan and aid programs as well. Once completed, the Free Application for Federal Student Aid (FAFSA) form is forwarded to your school, which will then inform you of your Pell Grant eligibility.
