Pell Grant
From Wikipedia, the free encyclopedia
The Pell Grant program is a type of post-secondary, educational federal grant program sponsored by the U.S. Department of Education. It is named after U.S. Senator Claiborne Pell[1] and originally known as the Basic Educational Opportunity Grant program. Grants, which do not require repayment, are awarded based on a "financial need" formula determined by the U.S. Congress using criteria submitted through the Free Application for Federal Student Aid (FAFSA).
The Pell Grant is covered by legislation titled the Higher Education Act of 1965, Title IV, Part A, Subpart 1; 20 U.S.C. 1070a.
Because Pell Grants are targeted toward students from poor families, receipt of them is often used by researchers as a proxy for low-income student attendance and to indicate the economic diversity of the student body.
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[edit] Amount of grant
Federal budget legislation passed in early 2006 cut the federal financial aid budget by $12.5 billion. While the maximum Pell Grant legislative limit was raised to $5,800 through 2011, maximum Pell Grant awards were not funded at this level. The maximum award available to students has been frozen at $4,050 since 2003-04.
For 2006-07, the maximum Pell Grant available to students was $4,050. For the award year of 2007-2008 the maximum Pell Grant award was $4,310. The maximum award for the 2008-09 award year (July 1, 2008 to June 30, 2009) is $4,731. For 2009-2010, the maximum is $5,350, with an added option for receiving an additional disbursement ($2,675) in the summer. The maximum can change each award year and depends on program funding. The maximum grant is to increase to $5,400 by 2012.
Due to rapid increases in tuition and fees, Pell Grants do not cover as many credit hours as they used to. Twenty years ago, a grant covered 60% of a student's cost of attendance while in 2006 the maximum grant covered about 30% of the cost of attendance.
[edit] Pell Grant recipients
To qualify for a Pell Grant, a student must demonstrate financial need. The amount of the award is based on the Expected Family Contribution, derived from the information on the FAFSA. In the 2005-06 school year, students with family incomes of less than $20,000 accounted for 57% of Pell Grant recipients. 35% of these recipients attended public two-year colleges, and 42% attended public four-year colleges.[2]
The National Postsecondary Student Aid Study found that during the 1999-2000 school year, students from families making less than $41,000 accounted for 90% of Pell Grant recipients.[3]
