Federal Pell Grant Program

Introduction
Eligibility Conditions
Benefits
Application Process
Financing
Administration
Procedures for Appeal

 

  

A Federal Pell Grant, unlike a loan, does not have to be repaid. Grants are based on economic need and are provided to students who meet financial-eligibility standards. Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree.

Income:
There is no set income ceiling established to determine financial eligibility. A federally-mandated needs analysis takes into account such factors as: parents' taxable and non-taxable income; household size; number of students currently attending college; age of student's older parent; and student's taxable and non-taxable income.

Assets:
Assets are considered in determining eligibility. Assets include the value of property owned by the family, cash savings, checking accounts, stocks, and bonds. The value of businesses, corporations, and partnerships are considered. Assets not considered include the family's principal residence. In order to shelter a portion of the family's assets, an asset protection allowance is given to every family based on the age of the older parent.

Age:
Not a condition.

Disability:
Not a condition.

Presence of Spouse:
Not a condition.

Presence of Children:
Not a condition.

Prior Contribution:
Not a condition.

Exhaustion of Benefits From Other Programs:
Not a condition.

Job Search:
Not a condition.

Participation in Work Program:
Not a condition.

School Attendance:
Must be enrolled for at least 1 credit per semester at an eligible, participating post-secondary institution.

Citizenship:
Must be a citizen or eligible non-citizen, as defined by the U.S. Department of Education. Generally, you are an eligible non-citizen if you are: (1) a U.S. permanent resident and you have an Alien Registration Receipt Card (I-551); (2) a conditional permanent resident (I-551C); or (3) an other eligible non-citizen with an Arrival-Departure Record (I-94) showing any one of the following designations: “Refugee,” “Asylum Granted,” “Indefinite Parole,” “Humanitarian Parole,” or “Cuban-Haitian Entrant.” If you are in the U.S. on only an F1 or F2 student visa, or only a J1 or J2 exchange visitor visa, or a G series visa (pertaining to international organizations), you must fill in oval c. If you are neither a citizen nor eligible noncitizen, you are not eligible for Federal student aid. However, you may be eligible for state or college aid.

Other Eligibility Conditions:
A student must be pursuing a first bachelor's degree or a post-baccalaureate teacher certificate program.

Type:
Grants are made to the post-secondary institution on behalf of the student and are to be applied to tuition and, in the following order, to fees, room and board, and other costs, such as books, transportation, and personal expenses.

Level:
The maximum award for the 2004-05 award year (July 1, 2004, to June 30, 2005) is $4,050. The maximum can change each award year and depends on program funding. The amount received will depend not only on financial need, but also on the costs to attend school, status as a full-time or part-time student, and plans to attend school for a full academic year or less.

Change in Recipient Status:
Students must reapply annually, using the Renewal FAFSA, which can be obtained online at: http://www.fafsa.ed.gov.

Change in Benefit Levels:
Benefit schedules are revised annually by an Act of Congress and signature of the President. The benefits of individual students are revised annually based on current financial need.

Where and How to Apply:
In order to apply, students need to complete the Free Application for Federal Student Aid (FAFSA). The United States Department of Education must receive the application by June 30, 2006 or the students’ last date of enrollment, whichever is earlier, for the 2005-2006 school year. There are no exceptions to this deadline. The FAFSA can be obtained:

• online at http://www.fafsa.ed.gov;
• from a high school guidance office;
• from a college financial aid office;
• from a local public library; or
• from the Federal Student Aid Information Center by telephoning 1-800-4-FED-AID (1-800-433-3243).

Financing:
The programs are financed entirely by federal general revenues,86% of which are derived from individual and corporate income taxes.

Administration:
The FAFSA is received and evaluated by the U.S. Department of Education's Federal Student Aid (FSA) office.

Procedures for Appeal:
The institution's financial aid administrator can adjust data used to calculate a student's expected family contribution (EFC) or adjust the student's cost of attendance if he or she believes that the student's financial circumstances warrant it based on the documentation provided. However, the financial aid administrator does not have to make such an adjustment. Additionally, the decision is based on the aid administrator's judgment which is final. It cannot be appealed to the U.S. Department of Education.