Federal Pell Grants

"Federal Pell Grants" submitted by SchoolGrantsfor Editorial Team and last updated on Sunday 8th January 2012

Table of Contents

Federal Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree. Student may receive up to two consecutive maximum awards in a year if attending school year-round. The Pell Grant, the nation’s largest grant program. Pell Grant award amounts can change yearly. The maximum award for the 2010–11 award year is $5,550. Based on - your Expected Family Contribution (EFC) and cost of attendance (COA), enrollment status Whether attending full or part time and whether you attend for a full academic year or less, must not already have a bachelor’s degree. To receive an FSEOG, ACG, or National SMART Grant, you must first be eligible to receive a Federal Pell Grant.

The Pell Grants stand separately and uniquely from such federal student loans as the Stafford, Perkins and PLUS loans because they do not require repayment. You do not have to repay the Pell Grants, these are given to you based on your financial need in order to go to school! This is government money that is given to you to go to school. Enjoy the benefit as many are not eligible to receive it in the first place. You don't have to pay back grants only loans.

Federal Pell Grants may be used to attend a teacher credential program at a college that doesn’t offer a bachelor’s degree in education, even if you already have a bachelor’s degree. For schools with year-round admissions and rolling starts, contact the financial aid office to find out which FAFSA to submit. Ask the financial aid office of each college you’re considering what forms are required to apply for financial aid. Also, ask about deadlines and whether a deadline is the postmark (or electronically transmitted) date or the received date. Some state aid programs require their own application forms as well as the FAFSA.

Award Amount:

Estimation of the Pell Grant award amount after submitting FAFSA

If you are eligible for a Federal Pell Grant, and within the age range to have graduated from high school after Jan. 1, 2005 in your Student Aid Report (SAR), additional screens will appear to help determine your eligibility for the Academic Competitiveness Grant. You will be instructed to use FAFSA on the Web or call the Federal Student Aid Information Center (1-800-433-3243) to provide additional information. When you receive a SAR, remember to read the comments and respond appropriately. Because of this extra step in the paper process, we urge you to apply for federal student aid using the online application, FAFSA on the Web.

Once you submit your application, your information is immediately sent to the U.S. Department of Education. You’ll get a confirmation notice right away when you click on “Submit My FAFSA Now.” Your confirmation page includes an estimate of the Pell Grant award amount, an indication of student loan eligibility, and a link to CollegeNavigator.gov (for graduation rates and other data). You can also e-mail the confirmation page to a valid e-mail address.

Other Federal Pell Grants Terms and Conditions That You Should Know

Pell Grant pay for prerequisite and remedial classes?

A pell grant will pay for remedial classes as long as your test scores indicate you need them. You can take other classes besides classes for your major as well, these are called General Education requirements.

Getting the Money:
the college will do one of the following:

Default, Repayment of Pell Grant? Pell Grant in case of drop out or withdraw from school/college?

Federal regulations specify that you attend at least 60% of the semester before you become eligible for 100% of your federal student aid awards for that term. If you drop out or withdraw from all your classes before you have completed at least 60% of the semester, the College must determine what portion of your federal awards you are entitled to receive according to federal regulations.

Your school's financial office will use a formula that computes what is known as the "unearned" portion of the Grant - and they will be required to return that 'unearned' portion to the Department of Education. In turn, your school is required to get a refund from you. You will be obligated to pay at least part of your Pell Grant back.

If you can not afford to pay it all at once, your school can make a payment agreement with you, but you must repay that money - or be making payments on a school-negotiated payment plan, before you can regain your eligibility to receive any future federal aid funds.

If you want to roughly estimate the amount that you will be asked to repay, figure out how many days there are in this semester, then figure out how many days of the semester will have passed as of the day you submit your withdrawal paperwork (not the last day you went to class). If you divide the second number by the first, that's what percentage of the semester you attended.

Suppose the semester was 100 days long and you withdrew on the 18th day. Easy calculation - you completed 18% of the semester. That's how much of your grant you "earned", and the rest - the 82% is unearned.

If you received a $2000 Pell Grant, the unearned portion of that grant is 82% of $2000 which is $1640. Your school gets to make certain deductions for its expenses, but they'll be required to pay most of that $1640 back to the Department of Education, and when they do, the school will turn around and bill you for 50% or more of that amount. Call your schools finanical aid office to determine how much of the semester you have completed.

If a repayment issue or dispute exists, you can use the NSLDS information to work with you schools or lenders to resolve the issue. Visit: http://www.nslds.ed.gov/

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