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Pell Grant- Federal Financial Aid


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College expenses can be overwhelming, especially if you come from a low-income family. You may not even be considering college because of your financial status. However, there is a solution. It's called the Pell Grant.

What is it?

It's free money. A Pell Grant is a needs-based Federal grant that does not have to be repaid. The Federal government began awarding it in the 1960's and it was named after U.S. Senator Claiborne Pell. This grant was created to help the poor receive a college education. Consequently, it is only given to low-income undergraduate students.

These grants can only be used at accredited colleges and universities. These schools will either use the money to pay your school tuition and fees or pay you directly (usually by check), or both. Funds are disbursed no less than twice a year.

How Much Money Can I Get?

The amount of money you will receive from the Pell Grant depends on your family's income, the cost of attendance, and whether you're enrolled full time or part time.

The 2006-2007 maximum Pell grant available was $4,050. For 2007-2008 it is now $4,310. As you can see, the maximum is subject to change each year depending on program funding. The maximum grant is expected to increase to $5,400 by 2012.

This money is helping low-income families all over the United States send their children to college. Those with a college education are adding value to our economy.

HOW DO YOU GET ONE?

To apply for a Pell Grant you must fill out a Free Application for Federal Student Aid (FAFSA).

The first thing that you will need to do before filling out a FAFSA is to obtain a PIN (Personal Identification Number.) You can get a PIN at www.pin.ed.gov.

You'll also need to have some documents handy to refer to as you fill out your FAFSA. These documents are: your Social Security card (you won't need this if you have your SSN memorized), driver's license, previous years W-2 form and any other income records, last years Federal Income Tax Return, and your parents' Federal Income Tax return from the previous year. In addition to that, you will need your untaxed income records (social security, temporary assistance to needy families, welfare, or veteran's benefits) from the previous year, current bank statements, and current business and investment information.

After filing a FAFSA (you can do this at fafsa.ed.gov), you'll receive a Student Aid Report (SAR) which will tell you if whether or not you are eligible for a Federal Pell Grant. This also provides you with your EFC.

The deadline for filing a FAFSA has passed for this academic year. The applications are no longer available. However, don't give up hope! You can apply for a Pell Grant next year as long as you send in the application by June 30, 2008. Don't miss the deadline!