Federal Pell Grant, Eligibility, and Form

The Pell Grant is one of the educational federal grants supported by the US Department of Education. Basically, it is a need-based grant for high school graduates and college undergrads. The Pell Grant eligibility is determined by assessing the financial need of their applicants through a standard formula established by the US Congress. Initially, applicants must fill up and submit a Free Application for Federal Student Aid (FAFSA) form. Based on the information supplied in this form, the applicant's eligibility will be evaluated.

The standard formula is used to compute the "Estimated Family Contribution" (EFC) of every applicant based on the information from the FAFSA form. The net income, excluding taxes and living expenses, and the net assets, with asset protection deduction, are considered in determining the EFC. The greater the EFC is, the lesser the chances of getting a federal Pell Grant.

History of the Federal Pell Grant

The Pell Grant, formerly known as the Basic Educational Opportunity Grant, was created in 1972 through the efforts of US Senator Claiborne Pell. To recognize Senator Pell's dedicated sponsorship, the program was renamed in his honor in 1980. Now, for over thirty years, the federal Pell Grant has helped countless financially-challenged students all over the United States. In fact, the 2007 Status report stated that 27% of undergraduates are Pell Grant recipients. In a statement by U.S. Department of Education Secretary Margaret Spellings on December 2, 2008, she remarked, "And, with bipartisan support, we raised the maximum Pell Grant award from about thirty-seven hundred to more than forty-seven hundred dollars. Today, about 1.5 million more students are now receiving Pell Grants."

Federal Pell Grant Eligibility

To qualify for a Pell Grant, an applicant must meet the following requirements:

• Demonstrate financial need by submitting a Free Application for Federal Student Aid (FAFSA);
• Be a U.S. citizen, U.S national or eligible non-citizen;
• Have a valid Social Security Number;
• Have a high school diploma or General Education Development (GED) certificate OR demonstrate "ability to benefit" by passing an approved test;
• Meet satisfactory academic progress;
• Be enrolled in an eligible post-secondary school;
• Be working toward a first undergraduate degree or teaching credential;
• Certify that the funds will be used only for educational purposes; and
• Be registered with the Selective Service if you are a male between the ages of 18 and 25.

The application for a federal Pell Grant costs nothing. All it takes is a completed FAFSA form together with the rest of the necessary requirements. Usually, Pell Grants are awarded to students who have incomes below $30,000. However, those who have incomes up to $60,000 are still allowed to apply.

Fortunately, there is no limit to the number of federal Pell Grant applications. Recipients can re-apply academic year after academic year as long as all the Pell Grant eligibility requirements are met.

Amount of Grant

Federal Pell Grants range from $400 to $5000 dollars. The computation varies on a case by case basis. It depends on the grantee's financial need, such as board and lodging expenses, tuition, other school fees and book allowances, enrollment status (part time or full time), and course duration. Students who need more are given more while students who need less are given less.

The amount of federal Pell grants has increased year after year. For academic year 2008-2009, the maximum Pell Grant awarded was $ 4,731. It is expected to increase up to $5,000 for academic year 2009-2010.

Pell Grant Payout

Funds are only given once every academic year. It must also come from one school alone. Students are not allowed to receive federal Pell Grants from other educational institutions. Recipients of Pell Grants will be notified by the school through a letter which states how much amount will be given. The letter will also indicate when the grant will be released. Depending on the school, the federal Pell Grant may be directly used to cover your school costs or be given to you through checks. In most cases, both methods are used together.

Five thousand dollars may seem a like a lot of money. But for someone who is trying to get through college, it isn't much. In most cases, it is not enough at all. In fact, according to the 2007 Status Report on the Pell Grant Program, 77% of federal Pell Grant recipients work to meet their expenses. Research also showed that recipients, more often than not, resort to loan applications to generate extra funds. Furthermore, out of the total number of applicants, less than 50% get approved. For that reason, grantees must take care of their money and learn how to spend it wisely.

The federal Pell Grant offers a fixed amount according to students' qualifications, and may not full pay school expenses. Scholarships4moms offers a chance of having $10,000 worth of free scholarship to moms who register to this scholarship offer.