Why Do Some People Not Qualify for Pell Grant?

Why Do Some People Not Qualify for Pell Grant? thumbnail
Pell Grants can be used to cover expenses including computers and textbooks.

Students began receiving the Basic Educational Opportunity Grant in the early 1970s. The purpose of this federal program was to provide education funding to college-bound students with low incomes. This financial aid is now known as the Pell Grant. Students meeting eligibility criteria can receive up to $5,550 for the academic years of 2010 to 2011 and 2011 to 2012, according to the US Department of Education. The award amount depends on financial need, cost of attendance and the number of credit hours a student is taking during a term.

  1. Low Financial Need

    • The main purpose of the Pell Grant is to help low-income individuals have access to a postsecondary education. Financial need depends on the Expected Family Contribution, or EFC. The EFC formula determines the amount of money dependent students and their families must contribute toward a college education. The figure depends on the students' income in addition to their families' income and assets. Other factors include the number of family members in the household and the number enrolled in college. Having a high EFC can prevent students from qualifying for a Pell, even if their families do not actually contribute anything to their education.

    Defaults and Criminal History

    • Students who have defaulted on a federal education loan, such as the Stafford loan, are unable to obtain a Pell Grant. Owing a refund on a federal grant also disqualifies students. Having certain criminal charges are also grounds for disqualification. Convictions for selling or possessing illegal drugs can disqualify students or limit their award. Applicants convicted of a sexual offense subject to civil commitment are ineligible for the grant.

    Citizenship Requirements

    • Pell Grant recipients must be United States citizens and have a valid Social Security number. Some noncitizens are eligible for this federal program, but they must meet certain criteria. In general, students in this category who are not U.S. nationals or U.S. permanent residents are ineligible for the Pell. However, individuals who are legally classified into certain designations, such as refugees or human trafficking victims, may still qualify.

    Ineligible Education Program

    • With the exception of certain teacher education postbaccalaureate programs, applicants cannot receive a Pell Grant if they are in a graduate program or working on a second bachelor's degree. Students in the postbaccalaureate teacher programs are not eligible for the grant if the programs lead to a graduate degree or if the college offers an equivalent undergraduate degree. Students in these programs also do not qualify if they have already obtained initial teacher certification, according to federal law.

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