The Pell Grant provides the backbone of college tuition money sources for a large number of students each year. This grant also known as the federal Pell Grant program, is overseen by the Department of Education. As is true of any grant, the money never has to be repaid and is one of the easiest grants to obtain since it is a need-based financial grant.
The Pell Grant was named for a United States Senator from Rhode Island, Claiborne Pell, while the original title was the Basic Education Opportunity Grant. Currently it is estimated that there are about 5,400 institutions of higher learning all across the country participating in the program.
To gain eligibility for the Pell Grant, one must be a full-time student enrolled in a 4 year college or university, be a United States citizen or meet a strict set of requirements for non-citizens. The applicant must possess a high school diploma or GED. In recent years, academic evaluation measures have been formulated for home schooled applicants. A good academic standing is required of all applicants. While Pell Grant eligibility is financially need-based, the applicant must have a good citizenship standing as well since prior incarceration or becoming incarcerated while receiving the grant will both be counted against the applicant’s eligibility.
The amount of an individual Pell Grant award is determined by calculating student income and assets if no longer living at home, or if still living at home, parental income and assets are counted. The amount of the award is based on a set percentage of eligible net income and assets. All award calculations must adhere to federal government guidelines. In cases where the student still legally resides at home, family size and the number of family members enrolled in college are also considered.
Once all of the Pell Grant requirements have been successfully fulfilled, the award will automatically be given out yearly without reapplication. In most cases, funds are paid directly to the student’s college account at least twice each academic year. If funds are paid to students, all monies must be used for educational expenses at the school of current enrollment.