Pell Grants are provided by the federal government which is why you will sometimes hear them referred to Federal Pell Grants. Their purpose is to provide financial aid and assistance to students most in need of it. One important condition you must comply with as an applicant for this college grant is that you have not yet earned your first bachelor’s degree and that you’re not enrolled in any post-baccalaureate programs.
U.S Senator Claiborne Pell is who the grant was named after. She was a Democrat out of Rhode Island. Formally, Pell grants were known as Basic Educational Opportunity Grants.
Many students look to Federal Pell grants as the foundation upon which they can build a collection of financial aid in order to pay their way through college. The program is sponsored by the Department of Education and it’s they who process the applications and decide who the successful candidates will be. This is largely based upon which students have the most financial need.
A formula is used to determine this based upon information submitted in a form called a FAFSA (Free Application for Federal Student Aid). Each students family are also expected to contribute to the college tuition fees as a part of federal college grants.
Federal Pell grants are not loans because they do not have to be repaid back to the government. There are around 5,400 participating colleges and educational institutions participating in the program and all together there are 5.4 million students benefiting from the grant. They attend postsecondary education both full-time and part-time. You can also use Pell grants for online university courses and vocational schools.
Statistics show that around two-thirds of students attending college full-time are in receipt of some kind of federal financial aid. A federal pell grant is among the most popular of these as it is so widely available and highly respected. Students who are eligible for the grant get an approved sum of money for each year they are going to school.
In deciding who is eligible the U.S Department of Education uses something called the Expected Family Contribution (EFC).
- You must have not yet earned a bachelor’s degree
- You must be a U.S citizen however eligible noncitizens may also apply
- You must have your high school diploma, GED or else satisfy the board of your worthiness for the program
A federal Pell grant carries a maximum payout of $5,500 for the year of 2010-11.