Pell Grants
The term pell grants is a name for a federal grant system that disburses literally billions of dollars to students in the US to help pay for student tuition fees and other expenses. To apply there are certain eligibilty criteria to receive this financial aid and like a scholarship you do not need to repay what you receive. Previously this program was called the Basic educational opportunity grants BEOGs). This is not a loan from the government and does not need to be repaid.
What is the Pell Grant Program ?
This is a needs based award for lower income families for undergraduates and some postbaccalaureate students that helps towards fees for post secondary education and can be used to pay towards study costs at over 5,400 colleges and universities across the US. The amount of award is based upon the fees at the university and the student's expected family contribution and is determined by a set formula developed by the Department of Education. You can only receive a grant at one school at a time.
Pell Grant Eligibility Criteria
There are online worksheets to find out if you are eligible for a pell grant as well as how much you'll likely to receive, but as a minimum you must be a US citizen (or eligible non-citizen), have a valid social security number, be registered with the selective service if you are male aged between 18 and 25, have a high school diploma or a general education development certificate (GED) or pass an approved exam from the US Department of Education. Additionally you must already be enrolled in an approved program that is eligible for federal aid and not have a conviction for drug related offenses. And overall you need to demonstrate that you need this aid and not owe any money on previous grants or student loans.
Disbursements
The amount you receive will depend on many criteria but on average during 2009 the award was $3,611. In total over $25 billion was provided to students through this program and over 7 million awards were appropriated. The range of awards during 2009 was between $486 and $5,250. The maximum award between July 2010 and June 2011 is $5,550 whereas for the year ending June 2010 the maximum award was $5,350.
Applying for Pell Grants
If you are eligible you apply for this grant using the free application for federal student aid (FAFSA) which is based on their website. It's a long process so make sure you have the time to complete the forms and all the information you'll need along the way. To start with you'll need your social security number, your driver's license if you have one, your W-2 forms and any other records you have of income you have earned for the past year, your federal tax forms for you and your spouse including your IRS 1040, 1040A and 1040EZ, your parent's federal tax returns, your current bank account statements and any other loan or mortgage records.