Purpose

The federal Pell Grant Program awards grants, which do not have to be repaid, to low- and moderate-income students who have not earned a Bachelor’s or professional degree. The program provides a “floor” or “foundation” upon which other sources of financial aid, including scholarships, loans and other awards, can be added. Pell Grants are designed to be “portable” and independent of Campus-Based Aid. This means eligible students can apply their Pell Grant award to their choice of post-secondary educational institutions.

History

In 1965 the Higher Education Act formed the basis of current student aid programs administered by the U.S. Department of Education. It established federal scholarships for needy undergraduate students under the Educational Opportunity Grant Program, a precursor to the Federal Pell Grant Program. Congress enacted the Basic Educational Opportunity Grant (BEOG) Program or “Basic Grant” in 1972.

Under the Higher Education Amendments of 1980, the BEOG Program became known as the Pell Grant Program to honor Senator Claiborne Pell from Rhode Island, a long time advocate of federal funding for higher education.

Since 1980, a number of Higher Education Amendments have changed the eligibility requirements and funding levels of the Pell Grant Program. One significant modification occurred in 1998 when a Higher Education Amendment extended benefits to post-baccalaureate students who are preparing to teach.

Benefit

Undergraduate students who have not completed a Bachelor’s or professional degree and who meet other Pell Grant Program criteria are eligible to receive an award between $750 to $7,395 in the 2023-2024 academic year (July 1, 2023 - June 30, 2024). Pell Grant maximums are set each year by the federal government depending on program funding.

The actual amount of the student’s award depends on the Federal Student Aid (FSA) program’s calculation of the student’s Expected Family Contribution (EFC) based on information the student submits in the Free Application for Federal Student Aid (FAFSA). Factors include the student’s cost of attendance and attendance status. Part time students, or those enrolled for less than a full academic year, may receive a reduced award.

Pell Grants are need-based awards. Although students with family incomes up to $45,000 may be eligible, most awards go to students with family incomes below $20,000. There is no limit on the number of years students can receive a Pell Grant, however only one award may be granted each year by only one educational institution.

In order to get a Pell Grant, the student must:

• Demonstrate financial need by submitting a Free Application for Federal Student Aid (FAFSA);
• Be a U.S. citizen, U.S. national, or eligible noncitizen
• Have a valid Social Security Number
• Have a high school diploma or General Education Development (GED) certificate OR demonstrate “ability to benefit” by passing an approved test
• Meet satisfactory academic progress
• Be enrolled in an eligible post-secondary school
• Be working toward a first undergraduate degree or teaching credential
• Certify that the funds will be used only for educational purposes, and
• Be registered with the Selective Service if the student is a male between the ages of 18 and 25.

The following students are ineligible:

• Individuals who owe a refund on a grant made by a federal student aid program under Title IV of the Higher Education Act;
• Individuals in default on a Title IV loan;
• Individuals incarcerated in prison; and
• Individuals convicted of possessing or selling illegal drugs.

Determination of Award

A standard formula approved annually by Congress and applied uniformly to all students is used by the Federal Student Aid (FSA) programs to calculate the student’s Expected Family Contribution (EFC). FSA uses information supplied on the student’s Free Application for Federal Student Aid (FAFSA) to calculate EFC.

If the student’s Expected Family Contribution is below a certain amount and the student meets all other eligibility requirements, he or she is eligible for a Federal Pell Grant.

Once the student’s EFC is established, it is subtracted from the Cost of Attendance (COA) calculated by the school’s financial aid administrator. If there is an amount left over, it is considered the student’s financial need.

The actual amount of the Pell Grant award depends on the student’s financial need and the availability of other financial aid to reduce the gap between the student’s Expected Family Contribution and Cost Of Attendance. The school’s financial aid administrator takes these factors into account when the financial aid package is structured and offered to the student.

Special Circumstances

In special circumstances, the financial aid administrator may adjust the Cost of Attendance or the data used to calculate the student’s Expected Family Contribution to influence the amount of financial aid the student can get. Students with special circumstances, such as significant medical expenses that impact their ability to contribute to their education, may wish to check with their financial aid office to inquire whether adjustments can be made. Disability related expenses can be used to alter the financial aid award. Expenses include: special equipment, transportation, and accommodations (readers, interpreters, note takers, personal attendants) that are paid for by the student.

Residency Requirement

Students must be able to live and attend school legally in the United States as a U.S. citizen, U.S. national or eligible noncitizen.

Eligible noncitizens belong to one of the following categories:

• U.S. permanent resident (has Alien Registration Card or I-551)
• Conditional permanent resident (has I-551C Card)
• Refugee
• Asylum grantee
• Parolee, or
• Cuban-Haitian entrant with an Arrival Departure Record (I-94) from the Immigration and Naturalization Service (INS).

Students seeking any kind of federal, state or institutional financial aid, including Pell Grants, must complete the Free Application for Federal Student Aid (FAFSA). Applications are available in English and Spanish and can be filed on paper or online.

Paper copies of the FAFSA are available at most high school guidance offices. They can also be found at college financial aid offices, vocational schools, libraries, community and state agencies, and by contacting the Pell Grant Program directly at:

Pell Grant
Box 84
Washington, D.C. 20044
1-800-433-3243

Students do not need to complete the entire Free Application for Federal Student Aid (FAFSA) application each year they apply for financial assistance. Returning applicants instead use an abbreviated version of the application called a Renewal FAFSA.

Documentation

Students need the following information in order to complete their FAFSA:

• Actual or estimated tax returns
• W-2 Forms and other records of earnings
• Records of untaxed income (e.g. Social Security, CalWORKs, and veteran’s benefits records)
• Investment records
• Bank statements
• Mortgage information
• Business and farm records
• Driver’s license, and
• Social Security Number.

For married or dependent students, family financial information will be needed as well.

Application Fees

There is no charge to file a Free Application for Federal Student Aid (FAFSA).

Deadlines

To be eligible for a grant for the following academic year, the FAFSA must be received by June 30. Web applications must be completed by midnight, Central Daylight Time, June 30. Students should bear in mind that deadlines for state and institutional financial aid may be earlier than the federal deadline. They should submit their FAFSA accordingly.

Processing Time

It takes approximately two to four weeks for the Federal Student Aid (FSA) program to process a FAFSA and produce a Student Aid Report (SAR). The SAR details the student’s financial information and Expected Family Contribution (EFC). Each financial aid office specified by the student on the FAFSA will get a copy of the student’s SAR. If the student is accepted at the school, the financial aid office uses the SAR to calculate a financial aid package for the student.

Tracking Progress

Progress of the FAFSA can be tracked online or by calling the Federal Student Aid Information Center at 1-800-433-3243.

Supplemental Security Income (SSI)

Pell Grants can be used without jeopardizing SSI eligibility. Grants are not considered as income or assets if they are used for paying tuition, fees or other educational expenses.

Social Security Disability Insurance (SSDI)

Individuals who are getting SSDI may be eligible for a Pell Grant if there is financial need. Pell Grants do not affect SSDI benefits.

Plans to Achieve Self-Support (PASS)

Individuals may also want to consider using a PASS Plan that can allow income and resources to be used for a specific work goal. A PASS can be used for tuition or equipment needed to attend school.

Federal Supplemental Education Opportunity Grant (FSEOG)

Students who complete a Free Application for Federal Student Aid (FAFSA) are automatically evaluated for a Federal Supplemental Education Opportunity Grant (FSEOG). Typically only students at the lowest Estimated Family Contribution (EFC) levels get a FSEOG as the program is designed for undergraduate students with exceptional financial need.

Eligible full-time and part-time students can get awards ranging from $100 - $4,000 per year. The FSEOG is similar to the Pell Grant in that it does not have to be repaid.

The exact amount of the supplemental grant, if any, is determined by the student’s school. Under the FSEOG program, each school gets a set amount of money from the federal government, which it distributes to students according to its own criteria and policies.

Pell Grant awards are either credited to the student’s account by the school or are paid directly to the student, usually by check. A combination of these payment methods is also possible. The school must inform the student in writing how the funds will be disbursed and the school must pay at least once per term.

Pell Grants are not the only type of financial aid. Individuals should check with their financial aid officer for more information about the range of opportunities for scholastic aid. Scholarships.com offers information on scholarships for students with disabilities.