The Main Idea Behind the Federal Pell Grant
A Pell Grant is financial assistance for students who cannot pay for their college education. It has been named after U.S Senator Claiborne Pell, Democrat of Rhode Island. It was previously known as the Basic Educational Opportunity Grant. It is known to be the crux of a college student’s financial assistance, and is sponsored by the United States Department of Education. The U.S Department of Education uses a standard formula to calculate the need of the students who apply for a Pell Grant.
This formula calculates the Expected Family Contribution (EFC) of the student in order to determine his/her eligibility. A Pell Grant is a federal funded grant that, unlike loans, does not need to be repaid. These federally funded grants help about 5.4 million full-time, part-time college and vocational school students nationally.
The purpose of these Pell Grant qualifications is to basically help college going students belonging to low income families. To apply, a student and his/her family need to fill the Free Application for Federal Student Aid (FAFSA) form. The form needs to be filled before the start of college education, and after the end of each year of college life in order to re-assess the student’s current financial position.
The form can be found online. Confirmation of acceptance is sent to the student via email or post. The maximum grant accepted for the 2010-11 term is $5,500. The maximum grant is awarded having different considerations such as the EFC, cost of attendance and whether the student will be a full-time or part time student. A student is not allowed to receive a Pell Grant from more than one college. The college can then either pay the student directly, or credit the amount from the student’s cost. On some occasions, these funds can also be used for career pathway programs.