Federal student aid is available in the form of scholarships, grants and loans. Student loan debt is sometimes unaffordable for people entering the workforce post-graduation. Fortunately, student scholarships and grant programs are available to qualified applicants based on financial need and academic merit.
Grants and scholarships are different from loans because they typically do not require repayment – provided the awarded funds are not misused. Student loans are helpful but the burden of repaying them sometimes negates some of the excitement of obtaining post-graduation employment. Read ahead to learn about EDU grants and additional options for student financial aid today.
Perhaps the most popular federal grant option for undergraduate college applicants is the U.S. Federal Pell Grant. Federal Pell Grant awards range in amounts between $650 (minimum) and $6,495 maximum. Multiple factors are used to determine eligibility for this award. Understanding program requirements helps you submit an accurate and on-time application.
Qualifying for Pell Grant funds is heavily determined by financial hardship levels. Financial hardship assessments are somewhat complex, however.
Three major factors are examined when calculating financial qualifications for this program:
- Factor 1: Your level of financial hardship (including all household income).
- Factor 2: The financial needs of all competing regional applicants.
- Factor 3: Socioeconomic statistics from where you live or will attend school.
The primary purpose of the Federal Pell Grants program is to provide aid to students who cannot afford the costs of college without financial assistance. Your household must therefore meet specific income criteria. The amount of money you or your parents can afford to pay for tuition is part of the calculation.
This is referred to as your Expected Family Contribution (EFC). Your cumulative household income also cannot exceed $50,000 per year. Exceptions sometimes apply for applicants with a cumulative household income above $50,000 based primarily on the regional economy where you live.
Additional qualification requirements include:
- Your status as an undergraduate student.
- Your tuition costs.
- Your financial need compared to the needs of multiple competing applicants.
- Your commitment to stay in school (full-time or part-time) for an entire year once your grant is funded.
Federal Pell Grants are typically awarded to applicants whose total household income is $20,000 per year or less. The average amount disbursed to students is approximately $2,000. All funds are initially disbursed to participating schools and not directly to students. Each school then either applies the money to your tuition or other expenses.
If any funds remain, your school then writes you a check or uses direct deposit to send you the balance. Funds are usable for tuition, books, school supplies and living expenses. Provided you use the funds as agreed you will not be required to repay the money. To find out if you qualify for Federal Pell Grant money, please complete and submit the Free Application for Financial Student Aid (FAFSA) online today.
