The Federal Pell Grant program is a very widely available grant program for students who are going to college. This program is one of the only ones that offers “free government money” so that you can go to college. Students who are eligible for Pell Grants do not have to pay back the money. Nor are Pell grants awarded based upon grades you’ve received. Solely a needs-based financial aid online program, the Pell grant determination is based upon your “Expected Family Contribution.” Those who have significant financial need can receive money.
The amount of money students can get through the Pell Grant program varies from year to year. The government decides how much money to put into this financial aid option, and that dictates the amount of the award. The amount is also chosen based on how much the college classes will cost, what the Expected Family Contribution is going to be, and whether or not the student is enrolled full time. For the 2008-2009 school year, the maximum amount a student could receive through the program was $4,731.
One interesting difference between the Pell Grant program and the federal loans is that students are not subject to a lifetime cap. With the federal loans, there is a limit on how much money a student can borrow. Pell Grants are only limited by the students and the length of time it takes them to get their first bachelors degree. If that takes eight years, the money is available for eight years.
The only way to apply for a Pell Grant is to fill out the FAFSA. Honesty is imperative, because if you don’t report all assets or income, you could be subject to very tough penalties, including possible time in jail. This form is used to determine your Expected Family Contribution. Even if you think you won’t qualify because your family makes too much money or has too many assets, fill out the FAFSA. it uses a complicated formula to determine eligibility, and you may qualify for some help that isn’t apparent to you at first glance.
Since this is also the way to qualify for federal loan programs, go ahead and fill it out. After you do so, the form goes on to your college or university, and they’ll take out the Expected Family Contribution from attendance costs, and determine what you’ll be expected to pay for attendance. If you are going to receive Pell Grant money, you will receive an award letter. You can’t do anything else to increase your chances of getting this money. While you wait, pursue other financial aid options. The amount given to you in a Pell grant will likely not pay all of your schooling expenses, so you’ll still need other financial aid.