Various Eligibility Factors for the Federal Pell Grant

The Federal Pell Grant Program provides financial aid to students from low income families who wish to pursue a post secondary education at any one of 5,400 participating educational institutions. Unlike student loans, a federal Pell Grant does not have to be repaid. However, the maximum amount that is available under the program is relatively limited compared to other forms of student loans. For 2010-2011, the maximum funding granted under the Pell Grant program is 5,550 dollars. The actual financial aid that students receive however will vary depending on a number of factors such as the student’s expected family contribution (EFC), enrollment status, and the cost of attendance at the student’s institution of choice.

Pell Grants are mostly available to students who are pursuing undergraduate degrees and have not obtained a bachelor’s degree or a professional degree. In some cases, Pell Grants are available to students who are completing their first professional degree in an area such as pharmacy, education, or dentistry. In order to become eligible, students need to be enrolled in a degree, diploma or certificate program at a participating educational institution. Generally speaking, students from families with annual incomes of up to 60,000 dollars annually are eligible to apply for a federal Pell Grant. However, a large majority of the grants that are actually awarded go to students from families with incomes of less than 20,000 dollars per year. The other eligibility requirements for the Pell Grant are fairly straightforward.

All students applying for the grant need to be United States citizens, permanent residents (Green Card holders), or be on asylum, parole or refugee status from countries such as Cuba and Haiti. In order to become eligible for a Pell Grant, a student cannot be in default on any other federal loan. Prospective grant recipients must also have not been convicted for the possession of illegal drugs while receiving federal aid. Those applying for the grants will also need to formally attest that any funds they receive under the program will be used only for education related expenses.

The actual amount that an individual is eligible for under the program is determined using a standard federal formula. Students first fill out what is known as a Free Application for Federal Student Aid (FAFSA). Data from the form is used to evaluate the expected financial contribution that the student’s family can make after allowances are made for basic living expenses, taxes and asset protection. If the student is independent, the standard formula is applied to the student’s income and assets. The manner in which EFCs are assessed can vary depending on factors such as whether the student is an independent or a dependent, and whether the student has dependents. An eligible student whose parent or legal guardian may have died in military service after Sept. 11, 2001 is automatically eligible for the full amount, so long as they are under 24 years of age or enrolled in college at the time of the parent or legal guardian’s death.