In addition to the previously stated criteria, a student's eligibility and the amount he'll receive are established by the U.S. Department of Education. To determine the eligibility and amount, the U.S. Department of Education uses a fixed method. They calculate the student's finances alongside his family's Expected Family Contribution (EFC), the tuition and total cost to attend the school (additional fees such as campus housing, supplies, books and more), and whether the applicant will be enrolled full- or part-time. Pell Grants are only applicable toward tuition at participating schools as determined by the U.S. Department of Education. Every year the department publishes the "Guide to U.S. Department of Education Programs," which contains comprehensive information concerning the schools and programs involved (see Resource section).
In order to receive a Pell Grant, students must fill out and submit the Free Application for Federal Student Aid (FAFSA) to be processed by the U.S. Department of Education. There is no separate application for the Pell Grant. Once the FAFSA is reviewed, an Institutional Student Information Record (ISIR) is forwarded to the school(s) the student selected on the FAFSA, and the applicant receives a Student Aid Report (SAR). Both documents inform the student and the school she wishes to enroll in whether or not the student qualifies for the grant and the amount she will be awarded. According to Student Aid on the Web (studentaid.ed.gov), the maximum Pell Grant award for the 2009-10 award year is $5,350 and the maximum Pell Grant award for the 2010-11 award year is $5,550 (see Reference section).
The school must send written documentation to the student regarding the monetary amount of this Pell Grant, along with when and how the payments will be made. As noted on Collegeboard.com, schools are required to pay the student at least twice per academic year; the school may credit Pell Grant funds to a student's school account, pay the student directly (usually by check), or use a combination of these two methods (see Reference section). As of recently, students can also receive the Pell Grants in the form of a debit card. The debit card contains the amount of the grant, and can be used to cover tuition and other related costs.