Pell Grants can help students in need pay for college while avoiding loans.
The federal Pell Grant Program can provide thousands of dollars to students who need financial assistance to receive a higher education. But the U.S. Department of Education-administered program comes with strict eligibility guidelines because it intends to help students who truly need it. Students who meet the criteria could receive as much as $5,500 in 2010.
Financial Need
The federal government determines students' financial need for Pell Grants by looking at the cost of attendance for a university and subtracting their expected family contributions. The larger the difference, the larger the grant award will typically be.
The Department of Education uses information from students' Free Application for Federal Student Aid (FAFSA) forms to determine their family's incomes and expected contributions. The department uses a formula to score students to determine if they are eligible.
Other Requirements
The federal government requires that Pell Grant recipients not have already earned a bachelor's or master's degree. There is an exemption for students enrolled in post-graduate teaching certification courses or other licensure programs.
There are other standard federal student aid eligibility requirements, such as students must be U.S. citizens and have valid social security numbers.
Criminal Disqualifiers
The Department of Education, under the Higher Education Act of 1965, is allowed to deny students federal aid, including Pell Grants, if they are in a federal or state prison. The department can also deny grants to anyone who is convicted of a drug-related felony while they are receiving financial assistance.
Students who lose their Pell Grants after drug convictions can reclaim their funding if they pass two unannounced drug tests.
Also, the grant program denies funding to anyone who is convicted of a sexual offense, whether it is forced or non-forced.
Awards
Students' expected family contributions will primarily determine how large of a Pell Grant award they will receive. Eligible full-time students could receive between $1,176 and $5,500 for the 2010-11 school year. The amount of funding part-time students receive depends on how many courses they take.
History
The Pell Grant program, which is named after former U.S. Sen. Claiborne Pell, began in 1973. In its first year, the program's largest awards were $452. The program's funding has grown with inflation and increased college costs over the years. In 2009, the American Recovery and Reinvestment Act temporarily increased the program's budget by almost double its size. Between 2009 and 2010, President Barack Obama has continuously pushed Congress to budget more for the program.
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