Income Limit for Full Grants for College
Applications for a wide range of college grants are processed through a single form known as Free Application for Federal Student Aid, commonly referred to as FAFSA. The information provided on this form determines a figure known as Estimated Family Contribution, or EFC. This is the amount of money a student's family is expected to pay towards educational costs. The size of the EFC can affect which grants a student can receive, and whether the student will receive the full amount. There are two levels of income that have significant effects on the EFC process: the FAFSA lower limit and upper limit.
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FAFSA Lower Limit
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If the family's adjusted gross income, which is gross income minus certain deductions, is below $20,000, then the EFC is automatically zero. This does not guarantee a student will receive any particular grant, or that the grant and EFC combined will cover the full tuition costs. It does mean that the student's family will not have to pay any money before receiving a grant.
FAFSA Upper Limit
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If the family's adjusted gross income is below $50,000, the EFC calculation does not take into account the family's assets. This means that an adjusted gross income of more than $50,000 may significantly increase the EFC and thus may reduce the proportion of tuition fees covered by a grant.
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Other Factors
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Income is only one factor that affects an EFC, and thus there is no formal absolute income limit for FAFSA. Other factors include the size of the household and the number of other family members currently in college. This means a student from a high-income family may still have a low EFC and thus qualify for grants.
Pell Grant
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While the grants available are different for each student, depending on location and chosen college, all students are potentially eligible for the federal Pell Grant. Because of the EFC process, there is no fixed income limit for receiving a Pell Grant. Instead, the relevant limit is that the EFC must not exceed $5,723.
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