Pell Grant Eligibility

Pell Grants are one of the many ways that aspiring college students can help pay for tuition.  Unlike loans, grants at money that never has to be paid back, much like a government funded scholarship.  So how does the federal government determine your pell grant eligibility?

Federal Pell Grant eligibility is determined by examining which students can demonstrate financial need. Financial need for federal programs is determined by the Free Application for Federal Aid, or FAFSA form. Every college student should fill out one of these forms before entering college, as it is the key to both government grants and student loans. There is no specific Pell Grant application; rather the government takes the information from your FAFSA and determines what types of aid you qualify for.

FAFSA determines something called your EFC (Expected Family Contribution). This is the amount the government thinks your family can reasonably contribute to your education, and includes factors like how much both you and your parents make, how many people are in the household, how many members of the household are in college, and whether you have a dependent or independent status. If you have dependents of your own, that is also factored in. The form then subtracts your expected contribution from a standardized average Cost of Attendance (CoA) to determine how much financial aid you can receive.

The maximum EFC to receive Pell Grants aid changes frequently, so it is important to check the most recent ruling. The Student Aid and Fiscal Responsibility ACT (SAFRA) raised the 2010-2011 limit to an EFC of 5,273, which means most families must have an income of lower than $50,000 a year in order to meet federal Pell Grant requirements. This grant is offered on a sliding scale, so those who demonstrate greater need will receive more aid, with a current maximum of $5,500 per school year.

Financial need is definitely the main factor when it comes to Pell Grant eligibility, but it is not the only one.  Students must be United States citizens or eligible non-citizens and must have a valid social security number.  You must have received either a high school diploma or a GED and be enrolled in an undergraduate program.  Students who have already received a bachelor's degree are not eligible, even if they are currently seeking a second bachelor's.  If you are a male between 18 and 25 years old you also need to be registered with the government Selective Service, which is in place in case the United States ever needs a draft again. 

There are a few things you need to do to maintain your Pell Grant eligibility.  You must be in good academic standing at your university.  This includes having a sufficiently high GPA for the number of credits you have taken.  After your second year you must maintain at least a 2.0 in order to retain federal aid.  In addition, you cannot have any drug charges while receiving federal aid.  You have 150% the expected time to finish your degree, meaning that you must finish a four year degree in no more than six years in order to continue receiving aid money.

The amount you receive for your federal Pell Grant will depend both on your EFC and how many credits you are taking at your university. Full time students can receive between $5,550 and $1,176 while half time students can receive between $2,775 and $831 as of the 2010-2011 school year.

Your federal Pell Grant eligibility is just one of the many determining factors in how much financial aid you receive.  There are many other grants, scholarships, and student loans available.  Also keep in mind that if you meet the Pell Grant requirements, you may also qualify for other student grants, like the SMART Grant.  Many parts can come together to make up your full financial aid package.