Student Loan Consolidation Assistance

Pell Grants and You

Paying for college is becoming harder as college costs rise and grants decrease. The Pell Grants, which awards funds to students who are not able to pay for college, previously covered about half of a student’s tuition, fees, room and board for up to four years of the time they spent in a public college or university. However, even though the disbursement amounts continue to rise, the money is covering less of the actual needs for the college student.

Today the maximum amount that is awarded in the Pell Grant is $4,310.00 for the 2007-2008 school year and $4,731.00 for the 2008-2009 school years. The amount awarded increases each year and by 2012, the grant may increase to over $5,000.00. The amount you are eligible to receive will be based on your financial need as well as how much it will cost to attend the school you will be attending, and whether or not you will be a full or part-time student for the full academic year.

These grants are sponsored by the U.S. Department of Education and the formula for calculating financial need is determined by Congress. You must fill out the FAFSA in order to be eligible for these funds. These grants are generally only awarded to undergraduate students who have never earned a professional or bachelor’s degree. These grants are the foundation of other federal financial aid. If you get a grant, it does not take away your eligibility for other federal or non federal college funding sources.

The good news is that these are grants and they do not need to be repaid. The money will be given to your school and they will need to tell you how they will be disbursing it. Will they give it directly to you? Will they apply it to your school costs? Will they do a little bit of both? These are all options for those who receive the Pell Grants but they must inform you of how they plan to do it.

The money must be disbursed at least twice per year but depending on your school’s use of semesters, quarters, or trimesters, they may disburse it at the beginning of the each unit of study as opposed to twice per year. Again, however they decide to do it and in whatever system you find yourself, they must let you know how it will be done through their financial aid office.