FASFA & Pell Grants

Every year millions of students can afford college thanks to the Pell grant.

The Free Application for Federal Student Aid (FAFSA) is one of the easiest routes to paying for college. Every year the federal government distributes billions of dollars in Pell grants to low-income students. The money does not have to be repaid. All that is required is filling out the FAFSA. The amount of aid is based on the student's or his family's income; the institution cost and the student's status as full or part time.

Filling Out the FAFSA

The student and parent can fill out the FAFSA together. The form will ask about the student's income and, if the student is dependent on the parents, the parents income as well as the family income. The form will also ask about the school the student plans to attend including the school code. Information from federal taxes will be required. Applications must be completed by June 30 for the fall semester.

Pell Grant

If you fill out the FAFSA and qualify for aid, you will be able to check back on the website within a few days and discover what aid you can receive and in what amount. Many who fill out the FAFSA qualify for a Pell grant which allows up to $5,500 for the 2011-2012 award year. About 75 percent of Pell grant recipients come from homes with under $31,000 in income.

Amount Determination

The amount a student receives is determined by the U.S. Department of Education. It is determined by many factors including the cost of the institution. A student attending a more expensive institution may receive more money than one attending a less expensive one, for example. This is true even if their family incomes are the same. The department also looks at income and family size.

Payment

Once the student has accepted admission to a school, the Pell grant money will go to the school. The school can either apply the Pell money directly to tuition or give the student a check. Pell grant money can be used for students in a qualifying study-abroad program as well.

References

• Department of Education: Federal Pell Grant Program
• Student Aid: Frequently Asked Questions
• Department of Education: Federal Pell Grants: Budget Request