The amount of a Pell Grant depends on the amount of the family contribution, attendance costs, and the number of hours of enrollment. The Pell Grant is available for individuals only and may not be given for groups of students.
The amount of your Pell Grant or financial aid award is determined by the government using a formula that considers income and assets of the student and parents. The estimated family contribution is the sum of the net income after basic living costs and the amount of net assets after an allowance. Assessment rates vary based on a student’s situation, such as whether you are a dependent student or independent with or without dependents.
In order to be considered for federal financial aid, you need to use the free application for federal student aid (FAFSA), which will determine your estimated family contribution. The application is online (see References 1). The application should be completed several weeks before the beginning of your first term. You can add several schools to the list if you are not sure which university you will attend. The FAFSA application requires information like your income and the assets of your parents. Once the FAFSA is submitted to the U.S. Department of Education for review, the colleges listed in the application and the student receive a student aid report (SAR), which reviews the student’s eligibility for a Pell Grant and the expected family contribution from the student. The SAR is available after approximately one week if you submit the application online and in two to three weeks if you submit the application in hard copy via mail.
The Pell Grant is normally paid directly to the educational institution through a student account. In some cases, the government may pay the student directly through a check or have a combined payment option, depending on the amount of the award.