Financing a college education can be quite a challenging feat for some families in today’s troubling economy. However, along with federal student aid loans that are available for continuing education there is another alternative source of funding available through Pell Grants.
A Pell grant, unlike that of a federal student loan does not required the student to pay back the allotted amount received. In order to thoroughly grasp the concept of Pell grants, a clearer understand of the differences between loans and grants needs to be addressed.
When a student applies for federal student aid, lenders that offer guaranteed loans for college education are supported by the federal government to ensure the loans will be repaid once the student completes their education. With a federal Pell grant, a student is not guaranteed the funds automatically but must meet certain financial income criteria in order to qualify for a grant.
Student qualification for a Pell grant is determined through the U.S. Department of Education. The eligibility of such grants are based on the following set of financial need requirements:
Family Income
Parent’s Assets
Household Size
Marital Status
Number of Family Members Enrolled In Secondary Education
College students who meet the above requirements may be eligible, based upon the discretion of the Department of Education, for a Pell Grant.
Understanding who qualifies to Pell grants and how to apply for one are equally involved. The process of applying for federal grants begins with the student completing a Free Application for Student Aid, or FAFSA. All students who will be applying for loans and/or grants must complete the FAFSA by certain deadlines pertaining to the specific college or educational program they may be enrolled in, however the student should make an attempt to complete the enrollment as soon after January 1 in order to maximize the opportunity of available funds.
Once the student has completed the FAFSA and the Pell grant application, it will be up to the U.S. Department of Education to decide whether or not the student meets the financial criteria necessary to qualify for a Pell grant.
