Function

• The U.S. Department of Education awards Federal Pell Grants based on completion of the Free Application for Federal Student Aid, FAFSA. The FAFSA delves into the finances of students and their family, and once the figures are completed, the DOE applies a formula to the submitted figures. The formula generates an expected family contribution, or EFC, that determines the potential Federal Pell Grant funding available to the student. If the student has a job, the figures reflect the employment.
  
  

Identification

• The maximum Federal Pell Grant award in 2010 is $5,550, or $2,775 each semester. The average Federal Pell Grant pays about half the maximum award, the Pell Grant Amount website explains. For most students, this pays tuition and fees only, and does not cover room and board or other necessities. Additional funds may come from loans, scholarships or employment.
  
  

Potential

• The Pell grant recipient may be gainfully employed, but the full award applies only to full-time students. Employment may reduce the student's course hours and the grant funds as well. Grant calculations are estimates, and the actual amount verification occurs after the drop/add date at most colleges and universities. A student who reduces hours to accommodate employment may see a decrease in funds for the current year and maybe the next.
  
  

Considerations

• Federal Pell Grants require re-application each spring, with new figures and disclosures. If you have worked during the past year, you must disclose your income. This disclosure may affect your EFC and grant funding for the new year. The effect depends on many other factors, all of which make up your profile for Federal Pell Grant funds and your EFC. The Department of Education does not restrict students employment, but the Federal Pell Grant calculations are need based.
  
  

Effects

• Many students work and attend school, and are independent of family sources of income. These students may register a zero for expected family contribution on the FAFSA, and their employment may have minimal effect on the grant award. With realization that the grant does not cover all expenses of college, the ambitious student who can find employment will likely take it, even if it reduces Federal Pell Grant funding.