College grants typically do not have to be re-paid and are used to pay for schooling; however, there may be an application that must be submitted to be awarded the funds. Grants may be ideal for someone seeking a higher education who doesn't want to go into debt. One of the largest grants available in the United States is the Pell Grant, named for Senator Claiborne Pell of Rhode Island. You can apply for this grant automatically by filling out a Free Application for Federal Student Aid, or FAFSA.
Eligibility Requirements
The Pell Grant is a need-based scholarship for people who do not have sufficient funds to pay for college. There are other requirements than just needing money for college, however, including being an undergraduate student who has not yet earned a bachelor's degree, and you must be enrolled in a participating school. In addition, you must also be eligible for student aid, meaning that you are a citizen with a Social Security number.
Funding
The Pell Grant is funded by Congress to varying levels every year. For example, Congress saw fit to increase funding for the Pell Grant for the years between 2007 and 2010. Furthermore, Congress appropriated additional funds for the Pell Grant as part of the economic stimulus act passed in 2010 -- to the tune of $17 million. This made 2010 the most well-funded year on record for Pell Grants.
Awards
Awards are determined by your financial need. However, there are limits to how much money you can get from the Pell Grants. In 2010, the maximum award was $5,500 per student per year. Laws for that year projected an increase of $200 per year between 2010 and 2012. You will receive notification of your award in the mail from the U.S. Department of Education or you can view your awarded amount on the Department of Education's website.
Disbursement
You can receive federal Pell Grants one of several ways. The money may go directly to your school or you may opt to receive the money. This will come from your school either in the form of cash or check. Sometimes it is a combination of these methods. The law requires that the school credit you for the grant at least once per term.
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