Are You Aware Of Federal Pell Grant? Read Here.

Federal Pell Grant is a program directed towards providing financial help to the college students and is highly accessible. It is very unique because it provides government funding for education and is a limited source. What this means is that those students who take up these grants don’t need to pay the amount back. It depends on the eligibility criteria. However, grades are not included.

This eligibility criterion is given to the students depending on their family contribution. Students who are struck in financial hardship are given awards. The award amount received by the students every year changes and the program is flexible. Who decides the funding of the program? Well, the federal government. It also controls the amount of the award by imposing restrictions. Other factors that decide the amount of award are expected family contribution; collegiate classes cost, and full time or part time student’s enrollment status. During 2008-2009 a student could be awarded $ 4,731.

The federal loan program has an upper cap above which no one can borrow any more money. That is the difference between federal loan program and the federal pell grant one. However, there is lifetime maximum to the pell grant program. Students themselves impose the limitations. Depending on how much time it takes for the students to complete their bachelor’s degree, the funds become accessible. If it is 8 years then the funds will be accessible for eight years.

The first step to apply for pell grant requires completing FAFSA. It must be filled with honest answers as incomplete or false information can bring severe penalties. One the most important sections to be filled in FAFSA is the expected family contribution. You may take help from someone if you don’t know how to proceed.

It is very important to complete the FAFSA form as it is a major factor that contributes in qualifying for federal loans. Your college will receive the form and the financial office will decide what amount you need to pay by deducting from the cost of your courses the expected family contribution.

If you are eligible then an award letter will be sent to you through the federal pell grant with all details. During this time you may try to find additional opportunities to receive federal funding because the pell grant program only covers 60% of whatever you incur for your studies. So be aware of the additional sources for aid.