The Pell Grant is a need-based federal financial aid program for undergraduates from low-income families and those that can demonstrate exceptional financial need. The federal Pell Grant is the first type of aid a student with extraordinary financial need can anticipate receiving when they consider the cost of universities. More in this blog.
The Pell Grant is a need-based federal financial aid program for undergraduates from low-income families and those that can demonstrate exceptional financial need. The federal Pell Grant is the first type of aid a student with extraordinary financial need can anticipate receiving when they consider the cost of universities.
The U.S. Department of Education gives Pell Grants to low-income students who qualify to help them pay for college costs like tuition, fees, room and board, and other education-related costs. Students must fill out the FAFSA, or Free Application for Federal Student Aid, in order to get the grant.
Read more: 8 Major Changes to the FAFSA
The Department of Education gives the most money to undergraduate students through the Pell Grant. Since the 1973-1974 school year, students have been getting grants from the federal Pell Grant program, which began in 1972. It was named after Rhode Island Senator Claiborne Pell, who was the program's main backer.
Most of the time, you don't have to pay back a Pell Grant, but there are a few cases where you do. Students should know that if they drop out of classes or change their enrollment status after getting a Pell Grant, they may have to pay back the money. Students should think of the Pell Grant as a big source of help, but they should also know that it is only one part of their financial aid.
The federal work-study program necessitates students to work for an hourly rate and is one of the available aid options. Student loans must be repaid. Because of the Pell Grant's significance and the fact that the government has increased the maximum award over time, all students should apply for financial aid and seek assistance to ensure that they are getting the most out of it as possible. Any school can benefit from the Pell Award; for instance, a commuter student who qualifies for the full Pell Grant will have close to 50% of their expenses covered by the grant.
Using data from the FAFSA, including income and the number of children enrolled in college, a family's estimated family contribution, or EFC, is computed. This number is used to determine a student's eligibility for a Pell Grant.
Note: The government incorporated a number of changes to the FAFSA Simplification Act's provisions into its 2021 Consolidated Appropriations Act in order to streamline the procedure and make the financial aid application process easier to understand. In December 2020, this became law. The Student Aid Index will be used in place of the EFC as part of this change (SAI).
In this blog post, we go over what the Student Aid Index entails.
The non-taxable sum awarded is likewise based on the annual budget approved by Congress. The Consolidated Appropriations Act of 2022, which President Joe Biden signed into law in March of that year, raised the maximum Pell Grant by $150. The minimum and maximum Pell Grant awards for 2022–2023 are $692 and $6,895, respectively. A student can have an EFC of up to $6,206 and still be eligible for a Pell Grant payment. The sum given to a student is valid for the duration of the award year, which runs from July 1 to June 30.
A family can appeal to their school for additional financial aid if their financial circumstances change after submitting the FAFSA, for example, if a parent loses their job or incurs high medical costs. In this case, the student might be eligible for a larger Pell Grant payment.
The Pell Grant stands out from other types of financial aid because a student's eligibility is consistent across all institutions that take part in the federal student aid program. Students must demonstrate extraordinary financial need on the FAFSA, be eligible citizens of the United States or eligible noncitizens, and not yet hold a bachelor's, graduate, or professional degree to be eligible. Although students pursuing a post-baccalaureate teacher certification are occasionally eligible for Pell Grant money, graduate students are frequently ineligible.
The Pell Grant is currently not generally available to students who are incarcerated in a federal or state facility or who have been found guilty of a specific crime, with the exception of those who are enrolled in the experimental Second-Chance program, which collaborates with 200 colleges to permit some prisoners to enroll in college courses. Federal student aid eligibility restrictions may be lifted after a person has been released.
But starting on July 1, 2023, all prisoners engaged in approved prison education programs will once more be eligible for the Pell Grant.
If students drop classes, drop below the minimum enrollment level, or stop making academic progress, which may include meeting institution-specific GPA standards, they may lose their eligibility for Pell Grants.
One trap to watch out for is lifetime eligibility, which places a cap on how many Pell Grants recipients are allowed to receive in their lifetimes. The federal government caps the amount of Pell grants that students can obtain at the equivalent of six years or 12 semesters. The Department of Education made this amended restriction public in 2012, when it was reduced from 18 to 12 full-time equivalent semesters that a student could be qualified for.
Additionally, students may be eligible for a summer Pell Grant award, commonly referred to as a year-round Pell Grant. Students may receive up to 150% of their planned award for a particular award year, provided that the lifetime eligibility cap has not been met.
Students simply need to complete the FAFSA in order to be eligible for a Pell Grant. Financial aid administrators will utilize the EFC number produced by the FAFSA to determine an applicant's eligibility for the Pell Grant and then use that number to establish the award amount. Because all you need to do is complete the FAFSA, it is the simplest type of aid to apply for. On the other hand, we are aware that filling out the FAFSA can be challenging and complex. We've often observed that first-generation students, many of whom may be most likely to benefit from the Pell Grant, have difficulty with the actual application.
Speak to a college coach to get your FAFSA done today!
Funding for the Pell Grant does not run out over the course of a year, in contrast to some other grants and scholarships. Due to the possibility of first-come, first-served financial aid, students should complete the FAFSA as soon as possible. Families and students should still complete and submit the FAFSA even if they believe they won't be eligible for the Pell Grant. Nearly all students who apply qualify for some type of federal financial aid, and the FAFSA is necessary for all forms of aid—not just the Pell Grant. The FAFSA has an earlier deadline in some states and institutions than the federal deadline of June 30.
Every year, students must submit a new financial aid application. Each year, depending on your financial situation at the time, you may be eligible for a Pell Grant. A student might not be qualified for Pell funding one year, but they might in the years that follow. Keep trying, then!
Read more about Common FAFSA Questions Answered
The Pell Grant money will go straight to the student from the college or university in payments called disbursements. The federal government will then pay back the institution for its costs. Most schools automatically put the Pell Grant award into the student's account balance to cover tuition, fees, room and board. If there are extra funds, a credit will be given to the student. The way this credit is given varies from institution to institution. The credit can be used to pay for books and other school costs up to a certain amount.
Students can expect to get their Pell Grant award at some point during the semester payment period. How and when a student gets paid depends on where they go to school. Colleges can give students their money as early as 10 days before the first day of classes, or they can pay them monthly. It all depends!
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I hope this was helpful!
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