Ebiz247.com Federal Pell Grant Information

The Federal Pell Grant
A Federal Pell Grant does not have to be repaid. Most Pell grants are available to students working on an associates or Bachelor's degree. There are some exceptions. Teachers working on post-graduate certification programs are also sometimes awarded Federal Pell Grants. Federal Pell grants are the initial building block to securing the financial needs for our college education. Be careful to not be intimidated by the required paperwork as this form of financial aid is well worth the effort. Remember...the Pell Grants do not have to be paid back.

What is the Value of a Pell Grant?
A total of $4,731.00 is the maximum dollar amount for a Federal Pell Grant for the 2008 to 2009 grant period. Depending on program funding, the maximum amount awarded can change to year to year. Your own personal college education financial need and the costs associated with your college institution will relate directly to your potential Pell grant. Your status as a full or part time college student is also a factor as well as how long you plan to study in a given calendar year.

How do I get the Money to my Bank Account if I am Eligible?
Your college of choice can credit Pell grant funds to your college costs. You can also be paid directly (usually by official Pell grant check). The college office of financial aid must notify you in writing how much your award will be and how and when you will be compensated. Colleges must disburse funds at least once per semester, trimester or quarter. Colleges that do not use these academic timelines must disburse funds at least twice per academic year.

Financial need: Your financial need is determined by the U.S. Department of Education using a standard formula. The formula was established by Congress to evaluate the financial information reported on the Free Application for Federal Student Aid (FAFSA) and to determine the family Expected Family Contribution (EFC).

The basic elements in this government formula are your income and assets, if you are independent. Your parents' income and assets if you are dependent on your family. The size of your family household and the number of family members (excluding parents) attending postsecondary institutions.

The EFC is the sum of:
1. a percentage of net income (remaining income after subtracting allowances for basic living expenses and taxes).
2. a percentage of net assets (assets remaining after subtracting an asset protection allowance).

Different assessment rates and allowances are used for dependent students, independent students without dependents, and independent students with dependents.

After filing a FAFSA, you will receive a Student Aid Report (SAR), or the institution receives an Institutional Student Information Record (ISIR), which notifies you if you are eligible for a Federal Pell Grant and provides your EFC.

In addition to the Federal Pell Grant, there are several other Federal Student Grants that are available. These grants are targeted to specific educational programs. The newest grant created for teachers is the TEACH Grant.

TEACH Grant Program: In 2007, Congress created the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program that provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.

In exchange for receiving a TEACH Grant, you must agree to serve as a
full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students. As a recipient of a TEACH Grant, you must teach for at least four academic years within eight calendar years of completing the program of study for which you received a TEACH Grant. IMPORTANT: If you fail to complete this service obligation, all amounts of the TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Stafford Loan. You must then repay this loan to the U.S. Department of Education. You will be charged interest from the date the grant(s) was disbursed.
This last part is very important because again, if you don't fulfill the conditions of the grant, the grant will be converted to a loan and you will have to it it back.

Federal Supplemental Educational Opportunity Grant (FSEOG): This grant program is for undergraduates with exceptional financial need. Pell Grant recipients with the lowest expected family contributions (EFCs) will be considered first for a FSEOG. Just like Pell Grants, the FSEOG does not have to be repaid. You can receive between $100 and $4000 per year depending on need and when you apply.

The National Science and Mathematics Access to Retain Talent (SMART) Grant: Known as the National Smart Grant is available during the third and fourth years of undergraduate study to full-time students who are eligible for the Federal Pell Grant and who are majoring in physical, life, or computer sciences, mathematics, technology, or engineering or in a foreign language determined critical to national security.