Named after former U.S. Sen. Clairborne Pell, who sponsored the program in 1973, the initiative was originally known as the Basic Educational Opportunity Grant and targeted prison inmates as a method of using education to reduce repeat crimes after parole. Although other students were eligible to receive the grants, they did not become popular with the public until the 1980s.
In an effort to ensure that all students receive a quality higher education regardless of their ability to pay, the Pell Grant provides money to those most in need of financial help. More than 5,000 colleges and vocational schools participate in the Pell Grant program, offering a wide variety of educational choices for those who receive funding.
The Pell Grant is limited to students in undergraduate programs and in vocational programs at participating schools. In addition, the student's income and his family's income are scrutinized so that funds are only provided for those with the greatest need. Income taxes, expenses and assets are considered during the application process. After a student reaches the age of 25, his parents' income is no longer a consideration.
The first step in applying for a Pell Grant is the submission of the Free Application for Federal Student Aid (FAFSA). Completing this form is mandatory when applying for a Pell Grant, and the student may request an application from a school counselor or complete the form online. Fill out the form after January 1 and before June 1. (See Resources)
A student will receive an Estimated Family Contribution (EFC) number after filling out the FAFSA. This number determines the amount of the Pell Grant award (if any) the student may receive. The student may choose up to 10 schools to receive his financial information during the application process. He is then responsible for contacting the school of his choice.
Besides the financial requirements, a student may not qualify for a Pell Grant if he is not registered with the Selective Service or if he does not possess a legal Social Security card. In addition, if the student was convicted of a drug-related crime within the previous school year, during which he was receiving federal financial aid, he is ineligible for a grant until the next school year.