CFDA Number: 84.063
Also Known As: Pell Grants; formerly called Basic Educational Opportunity Grants (BEOGs)
The Federal Pell Grant Program provides need-based grants to low-income undergraduate and certain
postbaccalaureate students to promote access to postsecondary education. Students may use their grants at any one
of approximately 5,400 participating postsecondary institutions. Grant amounts are dependent on: the student's
expected family contribution (EFC) (see below); the cost of attendance (as determined by the institution); the
student's enrollment status (full-time or part-time); and whether the student attends for a full academic year or less.
Students may not
receive Federal Pell Grant funds from more than one school at a time.
Financial
need is determined by the U.S. Department of Education using a standard formula,
established by Congress, to evaluate the financial information reported on the
Free Application for Federal Student Aid (FAFSA) and to determine the family
EFC. The fundamental elements in this standard formula are the student's income
(and assets if the student is independent), the parents' income and assets (if
the student is dependent), the family's household size, 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) and (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, the
student receives a Student Aid Report (SAR), or the institution receives an
Institutional Student Information Record (ISIR), which notifies the student
if he or she is eligible for a Federal Pell Grant and provides the student's EFC.
FSA Handbook
Federal Pell Grant Program
Federal Pell Grants are direct grants awarded through participating institutions
to students with financial need who have not received their first bachelor's degree
or who are enrolled in certain postbaccalaureate programs that lead to teacher
certification or licensure. Participating institutions either credit the Federal
Pell Grant funds to the student's school account, pay the student directly (usually
by check) or combine these methods. Students must be paid at least once per term
(semester, trimester, or quarter); schools that do not use formally defined terms
must pay the student at least twice per academic year.