An Overview Of The U.S.A Federal Pell Grant Program
Ryan Cartsoen | December 5, 2011Federal Pell Grant Program also called Pell Grant is a financial aid program offered by the US government to students who come from low-income families. Unlike loans, this grant does not require repayment in cash. You do have to show good academic progression though to remain eligible for future grants.
History
The Pell Grant program was established in the early 70s as part of the changes made to the Higher Education Act (HEA) of 1965. Back then it was called the Basic Education Opportunity Grant which served as a foundation of an undergraduate student’s financial aid package. It was only in 1978, that the program was renamed to Federal Pell Grant to honor Rhode Island Senator Claireborne Pell for his hard work and dedication to improving the higher education of students in the US. Senator Pell was largely responsible for the creation of the Basic Education Opportunity Grant.
Eligibility
Eligibility for this kind of federal student aid is primarily based on financial need. The US Department of Education makes use of a standard formula, the Expected Family Contribution (EFC), to determine the student’s financial need. The EFC is computed using the student’s answers to the one-hundred thirty items on the Free Application for Federal Student Aid form. The FAFSA form contains numerous questions regarding your and your family’s assets, income, and dependency.
Also taken into account are the household size, and how many household members are going to college in that year. The Federal Pell Grant is offered primarily to US citizens or permanent residents who are college students and with no bachelor’s degrees yet. Only US citizens, permanent residents, and eligible noncitizens can apply for the said grant. Examples of qualifiable noncitizens are those individuals granted asylum or parolee status, as well as Cuban/Haitian entrants.
Award amount
The sum of money you would get from the Pell Grant program is contingent on your EFC score, COA as determined by your school, and the amount of time you plan to attend college, whether it is a full academic year and whether you are enrolled as a full time or part time student. The current highest amount one can receive for this school year is USD 5,550.
How Do I Apply?
The first time you will need to fill out the FAFSA form is before you start your freshman year in college. You have the option to apply online or by post, although the former is highly recommended primarily because of faster turnabouts and convenience. Every year you will be required to update your FAFSA form to determine your reward amount. After the application is submitted, you will be notified by mail if funding is awarded.
Federal Pell Grant is one of your options to bridge the gap between what your family can afford and the COA as determined by your school. Follow this link to get more info about Pell Grant.





