What Is a Pell Grant Used For?

The Pell Grant, formerly known as the Basic Educational Opportunity Grant, is a federally funded program that provides grants for college expenses to undergraduate and vocational students. Unlike student loans, Pell Grants do not have to be repaid.

History

Congress created the Pell Grant program in 1965 as part of the Higher Education Act. The program is named after U.S. Senator Claiborne Pell of Rhode Island, a sponsor of the legislation. Pell Grants were intended to serve as the foundation of a student's financial aid.

Function

Federal Pell Grants are awarded to students with demonstrated financial need. Undergraduate students who meet income guidelines are eligible for these grants.

Features

Pell Grant funds are used to pay for college tuition, related school fees and books at colleges and universities, as well as post-secondary vocational or trade schools. More than 5,000 colleges and universities participate in the Pell Grant program.

Size

An individual student's Pell Grant award depends on a number of factors, including cost of attending the school at which the student enrolls; the expected family contribution, or EFC; and whether the student is enrolled full-time or part-time. The average Pell Grant award in 2008 was $2,945.

Misconceptions

Although graduate students, who have already received bachelor's degrees are not eligible for Pell Grants, students enrolled in certain graduate programs that lead to teacher certification can receive these grants.

Resources

• U.S. Department of Education - Pell Grant Program