- The Pell Grant is a federally-sponsored grant program aimed at low-income college students. Unlike student loan programs, the Pell Grant works much like a scholarship, in that the recipient doesn't have to repay the amount awarded. The maximum Pell Grant amount for the 2010-2011 was $5,550 for the entire school year. How the student receives the funds is largely up to his school; some schools pay the student directly, while others apply the funds to the student's account at the school. The U.S. Department of Education bases the award amount on the student's financial need, educational costs and enrolled status at the school.
- Any student, regardless of age, who has not yet received his first bachelor's degree may apply for a Pell Grant. The grant is also available for a select few post-graduate programs which lead to in-demand teaching licenses. The recipient must be an American citizen or eligible non-citizen such as a legal resident. He must be working toward his first undergraduate degree or post-graduate certification degree, must be enrolled at least half-time and must exhibit exceptional financial need. A Pell Grant has a limit of distribution for 18 semesters; any student applying for a Pell Grant for more than 18 semesters is ineligible.
- A Pell Grant is a foundational student aid program. It often serves as the basis of a financial aid package for a post-secondary student, to which other awards get added. To be considered for a Pell Grant, a student must complete and return the Free Application for Federal Student Aid form for each school year she intends to attend college. A student also needs to provide proof of financial need. This can be in the form of pay stubs, tax returns and other types of financial records needed to verify the student's income, as well as the income of her parents or legal guardians, if the student is under age 24. If the student is over the age of 24 or can prove that she is financially independent from her parents' household, the application will only take into account her income. The amount of a Pell Grant award is affected by the demonstrated financial need of the student.
- The Pell Grant amount a student receives is partially based on how many credit hours the student indicates she will be taking that school year. If the student indicates that she will be attending college for less than full time, the amount of the Pell Grant decreases at a pro-rated rate. If a student is awarded a full Pell Grant based on the fact that the student declared on the FAFSA that she intended to attend full time, but later enrolls on a part-time or half-time basis, the school's financial aid office will adjust the amount of the Pell Grant award accordingly. A student must enroll for at least half the amount of credits a school considers a full-time semester in order to be eligible for a Pell Grant.
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