Federal PELL Grants Basics

The program of Federal Pell Grant offers grants that are based on needs to undergraduates with low income and certain students of baccalaureate to promote the access to postsecondary education. The students may utilize their grants at any of an estimate of 5,400 who are participating in the postsecondary institutions. The amounts on grants are dependent on the following:

  • The expected family contribution (EFC) by the students
  • The attendance costs by the students that are established by the institution.
  • The enrollment status of the student i.e. full-time or part-time
  • If the attendance of the student is for a whole academic year or less

Federal PELL Grants

The Students may not get the funds for Federal Pell Grant from more than one school concurrently.

A student’s financial need is established by the United States Department of Education, which is based on a standard formula that is determined by the Congress. This assists in evaluating the financial information that is reported on the Free Application for Federal Student Aid (FAFSA) and to establish the expected family contribution. The main elements in this standard formula consist of the income of the students (that also includes the assets in case the student is independent), the assets and income of the parents (in case the student is dependent), the household size of the family, and the family members numbers (excluding the parents) who currently attend the postsecondary institutions. The expected family contribution is the sum of:

  • A net income percentage (i.e. the remaining income after subtracting allowances for the taxes and basic living expenses)
  • A net assets percentage (i.e. assets that remain after subtracting an allowance of asset protection)

There is use of different assessment rates and allowances for students who are dependent, independent students having no dependents, and independent students having dependents. After completing to fill the FAFSA, the student gets a Student Aid Report (SAR), or the institution gets an Institutional Student Information Record (ISIR), which is used to notify the student in case he or she is qualified for a Federal Pell Grant and offers the EFC of the student. Further info on grants visit : http://www.graduatingfromdebt.com/student-loans/federal-student-loans/

The Federal Pell Grants are grants that are directly awarded by the participating institutions to students who require financial assistance and have not yet received their first bachelor’s degree or students that are enrolled in specific post baccalaureate programs, which lead to the teacher certification or licensure. The participating institutions can either do the following:

  • Credit the Federal Pell Grant funds to the school account of the student
  • Paying the student directly (i.e. usually by check)
  • Or combining the above methods.

The students should be paid at least once every term i.e. semester, trimester, or quarter.  The schools that do not make use of the formally defined terms have the responsibility pay the student at least twice in every academic year.

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