Moneyzine
Contents
/Personal Finance/Pell Grant Program

Pell Grant Program

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 25th, 2023
Advertiser Disclosure

Definition

The Federal Pell Grant Program provides students with financial aid that, unlike a student loan, does not have to be repaid. The Free Application for Federal Student Aid, or FAFSA, is used by students to apply for a Pell Grant.

Explanation

Pell Grants are awarded to undergraduate students who have not earned a bachelor's or professional degree. The college or university, based on established federal guidelines, determines eligibility and award amounts for each grant. Federal Pell Grants are based on need, cost of attendance, and whether the student goes to school full or part time.

In 2018 / 2019, the Pell Grant limit was $6,095. Starting in July of 2012, students are eligible to receive these grants for the equivalent of 12 semesters. These grants can be used to pay for college expenses at 5,400 post-secondary institutions. After completing the FAFSA, a Student Aid Report will be sent to the student, outlining the Expected Family Contribution, or EFC. The Expected Family Contribution is the basis for awarding Pell Grants.

In 2011, there were 9.4 million Pell Grants awarded, with an average award value of $3,800. Participating schools can choose to pay the student directly or credit the student's account. Payments must occur at least once per term.

Related Terms

Related Content

How to Make a Million Dollars in 10 Years
Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
March 26th, 2024
How to Apply Maslow’s Hierarchy to Your Money This Year
You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
March 27th, 2024
How to Tackle Multiple Savings Goals
When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
March 22nd, 2024
The Countdown to Early Retirement: 10 Expenses to Eliminate
Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
March 22nd, 2024
What’s Your One Page Financial Plan? Mapping out Your Future
“What’s your one page financial plan?” — This is the absolute best question that I’ve heard asked in a long time. Instead of talking about your hot stock pick or your fancy investment that shields you from paying taxes, I think it’s time for all of us to step back and ask ourselves the most intelligent question of all, “Why the heck do I care about money anyway??”
March 14th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.