What Is A Pell Grant?

Students have a number of sources they can use to fund their college education. From finding tuition-free colleges, academic or sport scholarships to state and federal financial aid, numerous options are available. One such option is the federal Pell Grant.

The Pell Grant

The Pell Grant is a need-based federal subsidy to students requesting financial aid. The Higher Education Act (HEA) of 1965 set forth foundations of the modern college financial aid program by giving low to middle income families assistance in the form of grants and low interest loans. Claiborne Pell, a senator from Rhode Island, led efforts to amend the HEA in 1972 in order to solidify and offer greater assistance to students in need.

Today, the Pell Grant forms the base level of financial aid for qualifying students. Once you fill out your Free Application for Federal Student Aid (FAFSA) form, you will be shown your expected family contribution (EFC). This will be used in addition to the cost of attendance and your status as a student. Using the table available on the Federal Student Aid site you can see what potential grant amounts would be for your situation. For example, if your tuition is $3500 and your EFC is $900, your grant amount would be $2700.

Because the federal government is subsidizing your grant, you will not need to pay it back except under special circumstances. For example, if you were to receive the grant for a full time student but later reduce the number of credits you are taking, you may have to repay a portion of the grant.

Keep in mind that there is a yearly limit for the Pell Grant. For example, the 2018-2019 maximum award was $6095. Because the Pell Grant is a foundational grant, the amount you qualify for will not be affected by other financial aid you receive unless it reduces your need for federal financial aid.

Pell Grant Constraints

There are a few requirements for you to continue receiving the Pell Grant throughout your school career:

1. You must submit an up to date FAFSA each year
2. You must remain enrolled in a U.S. school
3. You can qualify for the Pell Grant each year you are enrolled until you earn your bachelor’s degree or until you have claimed the grant for twelve semesters
4. You must also meet your school’s requirements for making academic progress to remain eligible. This may vary from school to school, but in general you may need to:
   • Maintain a certain GPA
   • Take a certain number of credits each year
   • Maintain good academic standing

Other Grants

While Pell grants may be the most popular federal grant available, the government does offer other grants:

Federal Supplemental Educational Opportunity Grant (FSEOG)

• Awarded to students with exceptional financial need
• Prioritized for students who also receive the Pell grant
• Grant amount varies from $100 to $4000 per year
• Based on the participating schools available funds
• Not all eligible students will be awarded grant money
• Not all schools participate in the FSEOG program

Teacher Education Assistance for College and Higher Education (TEACH)

• Aimed at students who wish to join the teaching profession
• Can offer students up to several thousands of dollars
• Amount varies year by year
• Requires signing up for a TEACH-grant eligible program
• Requires maintaining a good academic record
• Requires signing the “TEACH Grant Agreement to Serve”
• Agreement stipulates teaching in a high-need field such as:
  • Science
  • Mathematics
  • Special education
  • Foreign language
• Must work at a school serving low-income families
• If agreement not fulfilled, grant converts to a loan

Iraq and Afghanistan Service Grant

• Offered to students who had a parent or guardian die as a result of military service in Iraq or Afghanistan wars
• Students could earn up to the maximum Pell Grant award amount
• Other criteria must be met

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