Federal Pell Grant

What is a Federal Pell Grant?

Unlike a loan, a Pell Grant does not have to be repaid. Generally, Pell Grants are awarded only to undergraduate students - those who haven't earned a bachelor's or graduate degree. In some limited cases, however, a student might receive a Pell Grant if enrolled in a post-baccalaureate teacher certificate program.

Pell Grants are usually a foundation of federal student aid to which aid from other federal and nonfederal sources might be added. If your child is eligible for a Pell Grant they will receive the full amount he/she qualifies for.

How does your student qualify?

The amount received as a Pell Grant is found using a formula established by Congress, that evaluates the information you report on your FAFSA application. The EFC (Expected Family Contribution) is determined and reported to on a SAR (Student Aid Report). The SAR contains the EFC amount in the upper right portion of page 1. This number will determine if your child is eligible and how much you can receive.

How much money can your student receive?

The maximum Pell Grant for the 2004-2005 award year (July 1, 2004 to June 30, 2005) was $4,050.

How much your child receives as a Pell Grant will depend on a number of factors. It will depend on the amount of your EFC and also, on the cost of the college your child plans to attend. Whether your child is considered a full-time or part-time student and whether he/she attends school on a full-time or part-time basis.

Remember, that your child may receive only one Pell Grant in an award year, and he/she may not receive Pell Grant funds from more than one school at a time.

How will funds be paid?

The school can credit the Pell Grant funds directly to your child's school account, pay your student directly (usually by check) or combine these two methods.

The school must tell your child, in writing, how and when the money will be paid and how much the Pell Grant amount will be. Schools must disperse money at least once per term (semester, trimester, or quarter). Schools that don't use formally defined, traditional terms must pay out funds at least twice per academic year.

Can your child receive a Federal Pell Grant if enrolled only part-time?

Yes, if your child is otherwise eligible. However, your child won't receive as much as if he/she were enrolled full-time.

In depth information about the Pell Grant can be found in The College Planner Digest. Since the funding of the Pell Grant budget is determined each year by congressional legislation it is important that parents keep up to date on the latest changes in this financial aid program.

Whether your student is going to college next year or ten years from now, if you are not up to date with correct information, it could cost you money, cause problems with qualifying, knowing when best to apply, etc.

The College Planner Digest costs less than a fast food meal and can save you time, frustration and money.