The Pell Grant program was established in 1973; these original grants were called Basic Education Opportunity Grants. They were renamed during a later amendment to the Higher Education Act of 1965, by which they are still legislated, and during that process they were renamed in honor of U.S. Senator Claiborne Pell (D-Rhode Island). Senator Pell was responsible for pushing the grant legislation through Congress and is also known for his work in establishing the National Endowment for the Arts and the National Endowment for Humanities.
Pell Grants serve as financial aid to U.S. students pursuing degrees at community colleges, universities and colleges. The grants are aimed at low-income families and students, and they provide reimbursement for tuition payments, books, fees and living expenses. Pell Grants form an important cornerstone of the federal student aid program, which includes Stafford and PLUS loans as well as other grant aid, and disburse millions of dollars in payments to students each year.
Qualifying for Pell Grant aid requires tax information and address and citizenship information. The application will determine your "EFC" (expected family contribution) based on your income and assets (for independent students) or your parents' income and assets (if you are a dependent student). The EFC will then be used to determine how much money you are eligible for under the Pell program. The cost of attendance (tuition), enrollment status (full- or part-time) and length of time enrolled also figure in the calculations for how much aid a student can receive. The Pell Grant applies to more than 5,000 accredited institutions in the U.S., and its awards are good for undergraduate degree-seeking students and in rare cases for some post-baccalaureate students. The funding is applied directly to the school a student attends. That school can either apply that to the student's tuition and fees, refund the amount directly to the student or use a combination of both methods to disburse the funds.
Simply applying for scholarships at a school will not qualify you for aid under the Pell Grant program. Students (and their parents, if applicable) must fill out the Free Application for Federal Student Aid, or FAFSA, available electronically through the U.S. Department of Education's website. Additionally, there are persistent misconceptions as to which students are and are not eligible for funding through the program. Different rates are used for independent students with dependents; also, it is possible to be considered an independent student if you can prove that no parents provide support for you, even before the age of 23. If you have children before age 23, you are automatically assumed to be an independent student.
It's always best to fill out the FAFSA when applying for aid to determine your actual eligibility. Aid counselors at your institution can assist you in this process.
It is also useful to remember that budget cuts over the past several years have hampered the ability of the Pell Grant program to provide the full amount of funding needed for students to attend college. Additional funding from scholarships, loans and work-study programs may be required for a student to pay for college.
The Pell Grant program provides more than 60 percent of grant funding nationwide for the country's college students. By remaining a need-based rather than merit-based form of federal aid, it extends the possibility for funding to a larger section of potential students.