The Fundamentals of the Pell Grant Program
One of the best well known sources for funding a college education is the Pell Grant. This need-based grant program is sponsored by the U.S. Department of Education and is available to undergraduate students who are considered low income and enrolled at least part-time in a diploma, certificate or post secondary degree program at any eligible institution participating in the federal Pell Grant Program. The funds for the grants are awarded yearly as a student account credit or a check distributed from the school’s financial aid office, which the student can deposit directly into their checking account. There is no need to worry about repaying these funds following graduation, making these grants are the most sought after form of aid for education.
The maximum award amount for 2010 to 2011 award year is now set at 5,550 dollars. This amount can be awarded twice during the award year, which currently spans from July 1, 2010 to June 30, 2011, from only one school at a time. The amount that each eligible student will receive depends on their overall financial need, enrollment status, and other costs associated with the institution they will be or are attending.
In order to apply to the federal Pell Grant program, a Free Application for Federal Student Aid, also known as FAFSA, must be filled out and submitted via the U.S. Postal Service, or via the Internet, starting after New Year’s Day. Students should be sure to check with their school because these deadlines vary depending on the type of institution they will be enrolling in. Upon the evaluation of the application by the U.S. Department of Education a form called the Student Aid Report will be received in the mail. It will inform the applicant of their Pell Grant eligibility status and their expected family contribution. Institutions listed on the FASFA will receive the same information via an Institional Student Information Record. Eligible individuals will receive an award letter stating the amount of their Pell Grant and any other financial aid funds they will be receiving from their chosen college.