The Pell Grant was established in 1965 under the Higher Education Act of 1965. It was named after Claiborne Pell, who was a senator in Rhode Island from 1961-1997, making him the state’s longest serving senator.
Pell Grants are now one of the most widely-known grants for college students. Unlike other grants or loans, Pell Grants are considered gifts, so they are not required to be repaid. This is a needs-based grant offered by the government.
Pell Grant Differences
One of the differences that Pell Grants have over other types of government aid is that there is no limit on how many times you can apply for a Pell Grant as long as you meet the qualifications. You may not use the Pell Grant money for more than one school at a time, but they can be transferred from one school to another.
Qualifications for the Pell Grant
The main factor that is considered when you apply for a Pell Grant is financial need. The grant is specifically designed for those who have difficulties with their finances. To be qualified for a Pell Grant the Department of Education determines a formula based on the Expected Family Contribution or EFC.
The determining factors which decide if you can get a Pell Grant are your income and assets, the size of your family, and the number of family members who are enrolled in post secondary education. You cannot receive a Pell Grant if you owe your previous financial institution any money.
In order to receive a Pell Grant, you must be a U.S citizen, permanent resident, or an eligible non-citizen. An eligible non-citizen is an individual who is a U.S permanent resident with an Alien Registration Card, is a conditional permanent resident with an I-551C card, or has an Arrival Departure Record, which is an I-94, from the Immigration and Naturalization Service. In the Record, it must designate that of a refugee, asylum granted, parole or Cuban-Haitian entrant.
To obtain a Pell Grant, you must also be engaged in undergraduate studies. You cannot have received a bachelor’s degree or other type of professional degree. If you are working toward a teacher certification program, then you are eligible to apply for the Pell Grant.
Another requirement to obtain the Pell Grant is that you must be enrolled in one of the secondary schools taking part in the grant. There are over 5,000 schools that offer the Pell Grant.
You have to have received a high school diploma or GED, and you cannot be in prison to be eligible for the grant. In addition, you cannot be behind on a federal student loan.
How to Apply for a Pell Grant
One of the first things that you need to do is apply early. Most of the time, Pell Grants are offered on a first come basis. Therefore, you need to submit your application as soon as possible. Online is probably the best way to apply. It is faster than regular mail.
You need to visit the Federal Student Aid or FAFSA website, which is www.fafsa.ed.gov. You can begin your application there. The website has clear and precise instructions for you to follow. There are three sections on the FAFSA. The first one is entitled Before Beginning a FAFSA in which they give directions on how to accurately fill out the form.
It will tell you not only how to complete the form, but also how the financial aid is given, eligibility criteria, deadlines, documents required, and how to sign the form electronically. The second section is called Filling Out a FAFSA. This is where you can begin filling out the form. There is even a help button if you have any questions.
Filling out a Late FAFSA
If you run out of time, you can save the information and return to fill it out later. After signing the application, it will be submitted for processing. Processing will take two to three weeks. They will give you a personal identification number so you can access your information. The last section is entitled FAFSA Follow Up where you can check the status of your application. It is important to make sure that you are completely honest when filling out the FAFSA.
Make sure you report all income and assets. If you lie on this form, you could incur severe penalties including jail time. Even if you think that you might not qualify for the grant, go ahead and fill out the form anyway. It is a complex formula, so you never know if you might qualify.
The documents in which you will need in order to apply for a Pell Grant are a driver’s license, social security number, W-2 forms, bank statements, investments and debt papers, and income tax documents. Once your Federal Student Aid is processed, you will receive a Student Aid Report or SAR. It will tell you what your Expected Family Contribution is and if you have qualified for a Pell Grant.
There is not a standard rule of how many hours that you need to qualify for the Pell Grant. If you are full time, you will receive more money than if you are part time. In order to prevent students from signing up for so many hours and then dropping a class after the money is received, there is a rule that requires their established hours to be set on the last day of adding and dropping.
Therefore, it reduces cheating and dishonesty. If you drop some classes after you receive the money, you will be required to pay the money back. You can sign up for just one or two classes and then get a lesser amount in a Pell Grant.
There have been many technicalities put into effect by the Pell Grant. Some people say that students who are poor or have made bad financial decisions have taken advantage of this grant. You might ask whether your student loans count as income when applying for a Pell Grant.
The law is very clear that student loans do not count as income. When applying for a Pell Grant, it specifically states that it does not include student loans except those federally sponsored.
You can still receive a Pell Grant if you are taking online courses. You just fill out your application the same way as other students do and go through the same process.
The online institution must be accredited by an approved accrediting agency. If you want to find a list of acceptable agencies, then you can go to the U.S Department of Education or the Council for Higher Education Accreditation websites.
You normally can begin completing your FAFSA application on January 1. There is a long application period. It is highly encouraged for you to apply as soon as possible. States will vary on their deadlines. Some of the states require that your application be completed by February, March, or April, but January 1 is the best time to file your application.
People from both lower and middle class families try to get a Pell Grant, so it is important to get your application in early or the spots might be filled.
Amount of the Grant
The amount in which you will receive is dependent on several things. The main thing is the amount that the government believes that you can pay towards your college education. Another determining factor is the cost of attendance, which is a sum of all the costs involved in attending each specific school.
These costs comprise tuition, academic fees, and other charges, such as housing and transportation. They will also consider whether you are a full or part-time student. The amount of the grant changes from year to year, but the current Pell Grants are ranging from $400 to $5550. Individuals whose parents died because of military duties in Iraq or Afghanistan after September 11, 2001 are offered the maximum amount.
Those students must be under 24 years of age or enrolled at least part-time in a financial institution at the time of their parent’s death. You can receive the Pell Grant for up to 18 semesters.
How You Receive the Funds
It just depends on the school as to how you will get the money. Sometimes the school gives you the money directly and you can pay the bills. Other times the money is applied directly to the school. In some cases, you and your school make plans to pay some of the money straight to you and other funds directly to your bill.
Your school is required to notify you in writing as to how much your award will be and how and when you will be paid. If they do not have semesters, trimesters, or quarters, they must give out the money at least twice during the academic year.
What Can You Use the Money For?
Pell Grants are first used to pay your tuition. If you still have money remaining, the college will usually give you a check. Then you can use any remaining money for fees, books, supplies, or housing. The way you spend what is left over is up to you.
What if you Drop Out of School?
Once you are awarded a Pell Grant, you will receive the funds each semester or whatever was decided by your school. If you choose to drop out, then you will not receive the money for the next term. If you do not sign up for the next term, you will automatically lose your Pell Grant. Sometimes you might be asked to return unpaid balances. This means that if you stop going to classes, you might have to pay some money out of your pocket.
If you quit school, you will not be allowed to receive the Pell Grant. In some cases, you might be allowed to reapply if you resume school. Each case is different. If you choose to transfer schools in the middle of the semester, your money will not carry over. Your new school will decide how much money you will receive.
It might be more or it might be less than what you were previously receiving. The best thing to do is stay in school, and you will not have to worry about it.
Are Your Required to Re-Apply?
A Pell Grant is good for a year, which usually includes two semesters. However, each year you will need to re-apply for another Pell Grant. You cannot receive all of your grant money for the whole year. Most colleges are split into semesters or trimesters. An equal amount of money will be divided, so you will receive a certain amount each term.
The IRS considers Pell Grants as a scholarship when filling out taxes. This grant is used to cover the cost of educational expenses, so it is tax free. Therefore, you are not required to file a tax return if the Pell Grant is the only income in which you get. You are not required to report any of the money that is used on your schooling.
There are many types of colleges which participate in the Pell Grant program. Every college has information of their website as to whether they offer Pell Grants. It does not matter how long you are enrolled in the college. You can be in a 2 year, 4 year, or summer program. It does not matter as long as it leads to your having a diploma.
Unfortunately, because of the cost, not everyone gets to go to college. Sometimes your dreams are not accomplished because of financial reasons. Pell Grants offer a solution to be able to afford higher education.