What is a Federal Pell Grant?

The Pell Grant program is a post-secondary, educational federal grant program sponsored by the U.S. Department of Education. This type of grant is usually awarded to undergraduate students – those that haven’t earned a bachelor’s or graduate degree.

The maximum grant amount for the 2008-2009 year is $4,731 and will increase to $5,400 by 2012. Students who require smaller amounts will receive less. Pell Grant money can be used for tuition, fees and educational expenses such as textbooks and materials for school.

Unlike loans, the Pell Grant is not repaid unless, for example, you are awarded funds incorrectly or you withdraw from school prior to the end of term.

Who qualifies for the Pell Grant?

In order for someone to qualify for a Pell Grant, the student must have significant financial need. In the 2006-2007 school year, students with incomes less than $21,000 accounted for 58% of the Pell Grant recipients.

If you are eligible for a Pell Grant, your school can apply funds to your school costs, pay you directly or combine both methods.  Schools must disburse funds at least once per term such as semester, trimester or quarter.

How do I Apply?

First you must make sure the school you attend participates in this grant program. The easiest way of doing this is to use a free service such as the College Matching Wizard. Once the school has been verified, you will begin the application process.