Pell Grants

A Pell Grant is a need-based college grant sponsored by the U.S. Department of Education. Grant amounts vary depending on financial need, tuition costs, and student enrollment status. Unlike loans, grants don’t need to be repaid, which is why these grants are targeted toward low-income students.

Federal Pell Grants are awarded through over 5,000 participating postsecondary institutions to students with financial need. To qualify a student must prove that they have a low Expected Family Contribution (EFC). This is the estimated financial support parents and/or students are able to contribute to post-secondary education costs. The majority of Pell Grant recipients have a very low EFC.

Besides having to meet a financial need requirement students also must not have already received a bachelor’s degree from a post-secondary institution.

When applying for a Pell Grant:

1)     Ensure you are eligible. Make sure you meet all the requirements to qualify.

2)     Apply sooner rather than later – money is distributed on a first-come, first-serve basis.

3)     Fill out a Free Application for Student Aid. These can be found and filled out online for electronic submission.

4)     If you are eligible, carefully follow instructions for claiming your Federal Pell Grant.

While the maximum Pell Grant for the 2010-2011 academic year is at its highest, $5,550, the program itself may be facing some funding issues in the near future. When the Student Aid and Fiscal Responsibility Act was passed by President Obama back in March things were looking up for the Pell Grant program. The money saved from ludicrous funding for subsidies are being allocated to expand the Pell Grant program. The problem now is that the program is looking at a significant shortfall for the 2011 fiscal year. If the program doesn’t get this shortfall covered, the maximum grant amounts are going to deplete heavily at a time when they are in high demand. The economy is experiencing a slow recovery and as a result students are more financially unstable. Their need for financial assistance will be even greater in the following academic year.

America needs to remain competitive when it comes to developing a workforce with a higher education background. If a resolution is not found millions of students are going to have their Pell Grants deflated and America’s workforce is going to suffer. This comes at a troublesome time when everyone, especially students, is still suffering the ongoing effects of the recession.