Federal Pell Grants provide financial aid to more than 5 million college students each year. The government awards the need-based Pell Grants based on income irrespective of academic achievement. Unlike loans to pay for college, Federal Pell Grants never need repayment.
The maximum award from a Federal Pell Grant is $4,731 in 2008 and 2009, although students from families with incomes over $20,000 will usually receive less than the maximum benefit. The minimum award for 2008 is $523. The average award based on 2007 figures is $2,494.
College students from families with incomes below $55,000 may qualify for a full or partial Pell Grant Award. Students from families making less than $20,000 a year receive most of the full awards.
The federal government considers students claimed on their parents' tax returns as dependents and calculates eligibility based on the parents' and student's combined incomes. Eligibility depends solely on student's income when classified as an independent.
Students attending almost any college or vocational programs as degree-seeking students may apply for a Federal Pell Grant. Students may also receive a Pell Grant for qualifying distance-learning programs.
Students may receive a Pell Grant only while completing an initial undergraduate, certificate or professional degree. Graduate students cannot receive a Pell Grant.
Eligibility for a Federal Pell Grant is calculated use tuition costs, family income, family size and enrollment status (full or part time.)
Pell Grant recipients must meet general federal financial aid eligibility guidelines including:
United States citizenship or eligible non-citizen;
Registration with Selective Service for males born after January 1, 1960 who are 18 years or older;
Continued minimum academic progress;
Freedom from default on any federal loans;
Use of aid only for educational purposes (including food, housing and supplies);
No convictions for possession or sale of illicit drugs while receiving aid.
Students apply for a Federal Pell Grant by filling out a FAFSA (Free Application for Federal Student Aid) application, available from financial aid offices at colleges and vocational-technical schools. Download a FAFSA application online from the link listed in Resources below.
The deadline for filing a FAFSA to receive a Federal Pell Grant is June 1 of the summer before the start of the academic year. Submit the FAFSA application as early as possible to ensure funds availability at the start of the academic year. Make online corrections to incomplete or inaccurate FAFSA applications through mid-September.
The U.S. Congress sets Pell Grant eligibility requirements and award amounts. The legislature periodically adjusts the maximum award amount upward or raises the family income limit determining eligibility.
Previous legislative sessions targeted the Pell Grant program for funding cuts. There is no guarantee of this popular college funding program's future availability.