What is a Pell Grant

Pell grants are forms of tuition assistance available to eligible undergraduate students enrolled in accredited colleges and universities.  Pell grants are need-based scholarships, not loans, from the United States government. Pell grant amounts are awarded annually, but allocated per semester. Prospective Pell grant recipients must apply for the award each year by completing the Free Application for Federal Student Aid—FAFSA—available online at fafsa.ed.gov.

Pell Grant Amounts

Pell grants are awarded based on the financial needs of the individual student and on their enrollment status in an accredited school. Full-time students receive larger Pell grant allocations than part-time students with a similar financial need. The maximum amount of an annual Pell grant award can change based on government guidelines. The maximum amount of the Pell grant award per eligible student for the year 2010 to 2011 is $5,550.

Eligibility

Eligibility for a Pell grant is limited to undergraduate students who evidence a significant unmet financial need in affording college tuition at an accredited school. Independent students or dependent students from families who earn up to $50,000 annually are eligible for a Pell grant. The United States Department of Education evaluates each applicant’s eligibility based on the information obtained from the federal student aid application.

Application

Undergraduate students who submit a completed Free Application for Federal Student Aid—FAFSA—are automatically considered for a Pell grant. Students can complete the FAFSA application online or by mail. FAFSA qualifies students for other types of need-based tuition assistance programs in addition to the Pell grant. FAFSA applications must be resubmitted annually to ensure continued eligibility.

 

Pell Grant Payments

Awarded Pell grant money is paid directly to the accredited college or university where the student is enrolled. Pell grant monies are awarded annually, but allocated each semester during the calendar year. For example, if a student receives a Pell grant in the amount of $5000 for the 2010-2011 school year, one-half of the award is allocated for the fall 2010 semester--$2500—and the remaining amount--$2,500—is awarded for the spring 2011 semester. If the student’s tuition is already paid through other resources, the school can allocate the amount of the Pell grant award, partially or in full, directly to the student.