When you submit your FAFSA form you are opening the doors to multiple sources of potential EDU-based financial aid. The primary type of financial aid awarded to FAFSA applicants, however, is the “Federal Pell Grant.” Successful applicants who are awarded Federal Pell Grant funds are required to meet specific financial hardship criteria. This program is unlike many college-facilitated or private scholarship programs because its funds are not awarded based on academic merit. Pell Grant funds are instead awarded to the applicants who are experiencing severe financial hardship.

Cumulative household income is the largest determining factor pursuant to qualifying for Federal Pell Grant money. Each individual applicant’s income is calculated in combination with their parent’s income as applicable.

If additional people in your household also earn a living and contribute to overall household expenses, their income might also be included in the calculations. The Pell Grant program was originally created to ensure low-income undergraduate college applicants could afford the costs of a higher education. Thankfully, the program maintains the same mission statement and goals today.

The majority of applicants requesting Pell Grant money due to financial need are considered for the program. To determine your financial eligibility, you will need to supply the last two years’ tax returns for all applicable household members. You might also need to supply bank statements, proof of assets and verification of investment accounts.

Certain income exceptions might apply. For example, if you are a dependent student you are required to submit your income plus the income earned by your parents. If you are an independent student, however, your parent’s income is not required. Please note: If you are a married independent student, you will also need to provide proof of your spouse’s income in addition to your own.

FAFSA approved online colleges accept financial aid funds from many more sources than the Federal Pell Grant program alone. Scholarships, grants, and student loans are also made available for the Latino, Asian-American and African American student demographics. Financial aid for many additional minority groups is also available.

For example, the American Indian College Fund provides financial assistance to qualified Alaska Native American Indian candidates. Certain grant and financial aid programs are only available to women as well. These programs help single mothers, domestic abuse victims and women in various other demographics pay for some or all their college expenses. Creating a FAFSA ID and renewing FAFSA applications on time each funding year is key to receiving the federal financial aid you need. Continue reading to learn how to apply for college financial assistance using FAFSA today.