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Pell Grant

A Pell Grant is a subsidy the U.S. federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with exceptional financial need, who have not earned their first bachelor's degree, or who are enrolled in certain post-baccalaureate programs, through participating institutions.[1][2] Originally known as a Basic Educational Opportunity Grant, it was renamed in 1980 in honor of Democratic U.S. Senator Claiborne Pell of Rhode Island.[3][4] A Pell Grant is generally considered the foundation of a student's financial aid package, to which other forms of aid are added.[5] The Federal Pell Grant program is administered by the United States Department of Education, which determines the student's financial need and through it, the student's Pell eligibility. The U.S. Department of Education uses a standard formula to evaluate financial information reported on the Free Application for Federal Student Aid (FAFSA) for determining the student's Expected Family Contribution (EFC).[6]

Pell Grants were created by the Higher Education Act of 1965. These federal funded grants are not like loans, and need not be repaid. Students may use their grants at any one of approximately 5,400 participating postsecondary institutions. These federally funded grants help about 5.4 million full-time and part-time college and vocational school students nationally.[7] As of the 2017–2018 academic year, the top three funded universities by total grant money were CUNY ($638 million), SUNY ($323 million), and the University of Phoenix ($197 million); three of the top ten funded colleges were for-profit colleges.[8]

History edit

Today, the Pell Grant program assists undergraduates of low-income families, who are actively attending universities and or other secondary institutions. However, before the Pell Grant became what it is today, it went through numerous changes.

In 1965, Congress passed the Higher Education Act of 1965 (HEA). President Lyndon B. Johnson implemented the HEA as a part of his administration's agenda to assist and improve higher education in the United States. It was the initial legislation to benefit lower- and middle-income students. The HEA program included not only grants but also low-interest loans to students who did not qualify for grants. Universities and other institutions, such as vocational schools, benefited as well from the HEA program, by receiving federal aid to improve the quality of the education process. Student aid programs administered by the US Department of Education are contained in Title IV of the HEA and so are called "Title IV Programs."

In 1972, Title IX Higher Education Amendments were a response to the distribution of aid in the current grant. Senator Claiborne Pell set forth the initial movements to reform the HEA. Lois Rice, an American corporate executive, scholar and education policy expert is known as the "mother of the Pell Grant" for her work lobbying for its creation. Opportunity Grant Program (Basic Grant) were intended to serve as the "floor" or "foundation" of an undergraduate student's financial aid package. Other financial aid, to the extent that it was available, would be added to the Basic Grant up to the limit of a student's financial need. Most changes to the federal student aid program result from a process called reauthorization. Through the process of reauthorization, Congress examines the status of each program and decides whether to continue that program and whether a continued program requires changes in structure or purpose. Congress has reauthorized campus-based programs every five or six years, beginning in 1972.

In 1994, Congress passed the Violent Crime Control and Law Enforcement Act (VCCLEA), a provision of which revoked Pell Grant funding "to any individual who is incarcerated in any federal or state penal institution."[9] A provision of this Act overturned a section of the Higher Education Act of 1965, which created the Pell Grant for postsecondary education. The provision reads, "No basic grant shall be awarded under this subpart to any individual who is incarcerated in any Federal or State penal institution."[9] Prisoners first became eligible for basic grant funding in 1972. As the principal design of the Pell Grant was to help low-income individuals attain post-secondary education, including prisoners was consistent with the goal. The grant aimed to reach those who might not otherwise have an opportunity to enroll in college study or vocational training programs. Including prisoners for funding was based on the notion that higher education improved the lives of inmates, reduced recidivism, and contributed to a more orderly institution.[10]

There has been some advocacy for reinstating Pell Grant funding for all prisoners who would qualify, despite their incarceration status, by members of the House of Representatives who introduced the Restoring Education and Learning Act (REAL Act) in the spring of 2014.[10] At the executive level, the Obama Administration backed a program at the Department of Education that would have allowed for a limited lifting of the ban for some prisoners called the Second Chance Pell Pilot.[9][11]

The ban was lifted by the Consolidated Appropriations Act, 2021.[12]

Higher Education Amendments of 1972 edit

 
Claiborne Pell

The Higher Education Amendments of 1972 reauthorized the three campus-based programs, leaving the Economic Opportunity Grant Program with the same name, but renaming the two others: the National Defense Student Loan Program became the National Direct Student Loan or Federal Direct Student Loan Program and the Federal Supplemental Educational Opportunity Grant Program (SEOG). In addition, for-profit schools became eligible to use Title IV Funds. Also, the Educational Opportunity Grant Program was changed to no longer function as a stand-alone program of gift aid but instead was linked with the Basic Grant Program.

In 1978, the Middle Income Student Assistance Act of 1978 (MISAA) was signed into act by President Jimmy Carter. This bill provides more generous Basic Educational Opportunity Grant, Pell Grants to low-income students, and makes students from families with incomes up to about $25,000 eligible. An additional 1.5 million students from middle-income families became eligible for the Basic Grants program.[13]

Education Amendments of 1978 edit

Starting in 1978, families were able to borrow $300 a year for each dependent child in school regardless of income.

Recent legislation edit

Several changes to the program occurred in 2011. The maximum award amount for the 2011–2012 award year is $5,500.[14] Despite a shortened application process, fewer funds for the 2011–2012 program could lead to financial problems for many students. The government funded the program at $17.1 billion from 2008 to 2010, as part of the American Recovery and Reinvestment Act of 2009. However, the additional funding does not match the needs of increasing numbers of students who enroll in college and qualify for aid through the recession.[15] The Pell Grant program was subject to a $5.7 billion decrease in funding as part of a continuing resolution (H.R. 1), which cleared the House in February 2011 and cut about $60 billion from the federal budget.[15] The changes would take effect for the 2011–2012 school year, decreasing the maximum amount of aid for the most needy students from $5,550 to $4,705 a year; in addition, about 1.7 million students who receive smaller Pell Grants would become ineligible for the program. Approval for the cuts is not certain because of long-standing bipartisan support from the Senate.[15] As of April 6, 2011, funds have not been approved, as the Senate has not voted to pass this legislation. The program provided grants ranging from $555-$5,550 to over 9 million students in 2011-2012, with awards totaling $33,575,066,024.[16]

In August 2022, President Joe Biden announced that up to $20,000 of debt would be canceled for Pell Grant recipients.[17]

Application edit

The application process requires the student and the student's family complete a Free Application for Federal Student Aid (FAFSA) form. The applicant should complete the FAFSA form for the first time prior to starting the freshman undergraduate year and then update the form each year as the applicant progresses through the college undergraduate term. The first step in applying for the Pell Grant is to complete or update the FAFSA form on or after October 1 of each year. If an applicant must correct a completed FAFSA form, it can be done in step 3 of the application, in the "Make corrections to a processed FAFSA" section. When the student completes or updates the FAFSA application, answers to questions determine eligibility for the Pell Grant, among other government grants and funding.

After the initial FAFSA application is submitted, the student is notified by email or regular postal delivery if funding is awarded. Copies of the confirmation sheet should be made for personal records.[18]

Eligibility edit

The U.S. Department of Education has a standard formula that it uses to evaluate the information that each person supplies when applying for the Pell Grant. The formula used was created by Congress from criteria submitted through the FAFSA form. The formula produces a number that is called the Expected Family Contribution (EFC), which determines the student's eligibility.[19]

This grant requires each applicant to be an undergraduate student who has not yet earned a bachelor's degree, and a United States citizen or an eligible non-citizen (usually, a permanent resident). In addition, the applicant must have a high school diploma or a GED or be able to demonstrate the ability to benefit from the program.[6] Applicants must also sign a statement certifying that they will use the aid only for education-related purposes, that they are not currently in default for any federal student loans, and that they owe no refund for any federal education grants.

The Pell Grant also requires that students maintain satisfactory academic progress in a degree-oriented program as defined by the school they attend. A person may be eligible if previously incarcerated but with limited eligibility, depending on the offense.[20]

Students must not have an outstanding Pell overpayment on record. Additionally, an applicant may not receive Pell Grant funds from more than one college at a time.[6]

Award amount edit

As with all grants, there is a maximum amount that the government funds for each applicant. The maximum amount for the 2022–2023 award year is $6,845. The maximum Federal Pell Grant for the 2023–24 award year (July 1, 2023, through June 30, 2024) is $7,395.[21] The maximum amount of the grant usually depends on the EFC and several other factors, including cost of attendance, the amount of time the student plans to attend college, whether it is a full academic year, and whether one is a full-time or part-time student.[6] Once one has been considered eligible, the money can be obtained a couple of ways: the student's school can apply Pell Grant funds to school costs, pay the student directly, usually by check, or combine these methods.

The school must tell the student in writing how much the award will be and how and when it will be paid, and it must disburse Pell Grant funds once a semester/term or twice during the academic year.[6] Under certain circumstances, Pell funds can also be used to fund Career Pathways programs and support services.[22]

Uses of grant edit

Typically, the college first applies the grant or loan money toward a student's tuition, fees, and (if the student lives on campus) room and board. Any money left over is paid to the student for other expenses: books, living expenses if the student does not live on campus, and transportation.[1][2]

Impact edit

Students coming from low-income families already face increased challenges that hinder their ability to receive a higher education. The Pell Grant addresses one of the issues by making college accessible to students that may need the financial assistance. It has been shown to increase the college enrollment of students coming from lower and moderate-income families. It can also reduce the chances of them dropping out.[23]

There have been advocacy efforts to reinstate prisoner eligibility for Pell grants as a preventative to re-incarceration. In 1997, one study on 3,200 prisoners in three states showed that receiving education while incarcerated reduced the likelihood of re-incarceration by 29 percent.[24]

Lynn Novick, the director of "College Behind Bars" and a collaborator with Ken Burns, recently wrote in the Seattle Times about how access to college education in prison was markedly reduced:

"Higher education in prison was commonplace in America until 1994, when the Clinton Crime Bill banned federal Pell Grants for people in prison. Overnight, college behind bars was decimated. Privately funded programs like the one we visited, the Bard Prison Initiative (BPI), slowly sprang up, but they do not begin to fill the enormous need."

She argues that access to education may help reduce the high recidivism rates of 50-60% and reports that "Of the 600 BPI alumni who have been released in the past 20 years, only 4% have gone back to prison." [25]

Appropriations edit

  • Fiscal Year 2011: $41,674,180,000
  • Fiscal Year 2010: $21,772,000,000
  • Fiscal Year 2009 : $19,378,000,000
  • Fiscal Year 2008 : $16,256,000,000
  • Fiscal Year 2007 : $13,660,711,000

Note: The amount for FY 2006 includes $4.3 billion to retire prior-year funding shortfalls; the amount for FY 2008 includes $2 billion in mandatory funds.

Note: The amounts for FY 2008 and FY 2009 include $2,000,000,000 and $2,100,000,000, respectively, in mandatory funds. In addition, the $17,114,000,000 in 70 U .S. Department of Education Recovery Act funds includes $1,474,000,000 in mandatory funds, of which 831,000,000 is for use in academic year 2010–11.

Note: The amount for FY 2009 includes $2,090,000,000 in definite mandatory funds and $16,283,000,000 in American Recovery and Reinvestment Act of 2009 funds, of which $643,000,000 is mandatory. The FY 2010 appropriation amount includes $5,299,816,000 in indefinite mandatory funds. The FY 2011 appropriation above includes $13,500,000,000 in mandatory funds to help reduce discretionary need and $5,218,184,000, which is the estimate of indefinite mandatory funds needed.[26]

Awards information edit

2011

Amount of Aid Available: $35,772,935,000 Amount of Aid Available represents the amount of funds to be awarded to participants in this program. Number of New Awards Anticipated: 9,413,000 Average New Award: $3,800 Range of New Awards: $555–$5,550

2010

Amount of Aid Available: $32,295,226,000 Amount of Aid Available represents the amount of funds to be awarded to participants in this program. Number of New Awards Anticipated: 8,355,000 Average New Award: $3,865 Range of New Awards: $555–$5,550

2009

Amount of Aid Available: $25,328,889,000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs. Depending upon the program, this total may include federal appropriated dollars, institutional or state matching dollars, and federal or private loan capital. Number of New Awards Anticipated: 7,022,000 Average New Award: $3,611 Range of New Awards: $486–$5,350

2008

Amount of Aid Available: $16,428,110,000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs. Depending upon the program, this total may include federal appropriated dollars, institutional or state matching dollars, and federal or private loan capital. Number of New Awards Anticipated: 5,578,000 Average New Award: $2,945 Range of New Awards: $400–$4,731

2007

Amount of Aid Available: $13,989,305,000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs. Depending upon the program, this total may include federal appropriated dollars, institutional or state matching dollars, and federal or private loan capital. Number of New Awards Anticipated: 5,339,000 Average New Award: $2,620 Range of New Awards: $400–$4,310[27]

Federal Pell Grant lifetime eligibility calculator edit

The scheduled award is the maximum amount of Federal Pell Grant funding a student can receive is calculated for an award year. An award year is a period from July 1 of one calendar year to June 30 of the next year.

The scheduled award is partially determined using the student's expected family contribution (EFC), which the program calculates from the information the student and family provided in the Free Application for Federal Student Aid (FAFSA). The result is the maximum amount the student can receive for the award year if enrolled full-time for the full school year. It represents 100% of the Pell Grant eligibility for that award year.

To determine how much of the maximum six years (600%) of Pell Grant the student uses each year, the U.S. Department of Education (ED) compares the actual amount awarded for the award year with the scheduled award amount for that award year. A student who uses 100% receives the full award. A student might not receive the entire scheduled award for an award year, most commonly if the student did not enroll for the full year, did not enroll full-time, or both. If the student does not receive the full award, ED calculates the percentage of the scheduled award they received. Before the 2011-2012 Aid Year, the FAFSA limit was 18 semesters, but it was cut to 12 semesters by Congress.

ED tracks the Lifetime Eligibility Used by adding the percentages of the Pell Grant scheduled awards a student receives each award year.[28]

See also edit

References edit

  1. ^ a b "Federal Pell Grants are usually awarded only to undergraduate students". U.S. Dept. of Education. Retrieved March 10, 2017.
  2. ^ a b "Wondering how the amount of your federal student aid is determined?". U.S. Department of Education. Retrieved March 10, 2017.
  3. ^ Nietzel, Michael T. "Democrats Reintroduce Bill To Double The Pell Grant". Forbes. Retrieved October 6, 2021.
  4. ^ Ford, William D. (October 3, 1980). "H.R.5192 - 96th Congress (1979-1980): Education Amendments of 1980". www.congress.gov. Retrieved October 6, 2021.
  5. ^ "Federal Pell Grants" (PDF). Department of Education. Retrieved April 6, 2011.
  6. ^ a b c d e "What is a Pell Grant?". College Board. Retrieved March 26, 2011.
  7. ^ . Get Ready for College. Minnesota Office of Higher Education. Archived from the original on February 17, 2011. Retrieved March 26, 2011.
  8. ^ "Distribution of Federal Pell Grant Program Funds by Institution and Award Year". U.S. Dept. of Education. August 31, 2017. Retrieved April 16, 2018.
  9. ^ a b c SpearIt (January 6, 2016). "Keeping It REAL: Why Congress Must Act to Restore Pell Grant Funding for Prisoners". SSRN 2711979.
  10. ^ a b SpearIt (July 25, 2014). "Restoring Pell Grants for Prisoners – Growing Momentum for Reform". SSRN 2814358.
  11. ^ . Archived from the original on March 27, 2018. Retrieved February 12, 2018.
  12. ^ Americans' support for college financial aid for prisoners depends on how the benefits are described.
  13. ^ Carter, Jimmy (November 1, 1978). "Education Amendments of 1978 and the Middle Income Student Assistance Act Statement on Signing H.R. 15 and S. 2539 Into Law". University of California, Santa Barbara. Retrieved March 26, 2011.
  14. ^ "Federal Pell Grant Program". U.S. Department of Education. Retrieved June 7, 2011.
  15. ^ a b c Hopkins, Katy (March 2, 2011). "Potential Cuts to Pell Grant Could Affect Students in 2011". U.S. News. Retrieved March 26, 2011.
  16. ^ "2011-2012 Federal Pell Grant Program End-of-Year Report" (PDF).
  17. ^ Douglas-Gabriel, Danielle; Stein, Jeff (August 24, 2022). "Biden to cancel up to $10,000 in student debt for most borrowers and $20,000 for Pell recipients". The Washington Post. Retrieved August 24, 2022.
  18. ^ "What happens after I submit the application?". U.S. Dept. of Education. Retrieved June 17, 2018.
  19. ^ "The EFC formula, 2022–2023" (PDF). U.S. Dept. of Education.
  20. ^ "Students with Criminal Convictions". U.S. Dept. of Education. December 1, 2014. Retrieved September 11, 2015.
  21. ^ "Pell Grant Maximum for 2023-24 Announced". StudentAid.gov. Retrieved April 12, 2023.
  22. ^ (PDF). Center for Law and Social Policy. Archived from the original (PDF) on September 30, 2011. Retrieved August 9, 2011.
  23. ^ Boteach, Melissa; Stegman, Erik; Baron, Sarah; Ross, Tracey; Wright, Katie (April 14, 2015). "The War on Poverty: Then and Now" (PDF). Center for American Progress. pp. 1–34.
  24. ^ SpearIt (July 15, 2016). "The Return of Pell Grants for Prisoners?". SSRN 2814364.
  25. ^ Lynn Novick, "College Behind Bars: Education's transformative power for America's incarcerated men and women." Seattle Times January 12, 2019, A17
  26. ^ "Funding Status -- Federal Pell Grant Program". September 20, 2021.
  27. ^ "Funding Status - Federal Pell Grant Program". .ed.gov. November 21, 2011. Retrieved February 5, 2014.
  28. ^ "Calculating Pell Grant Lifetime Eligibility Used | Federal Student Aid". U.S. Dept. of Education. June 15, 2012. Retrieved February 5, 2014.

External links edit

  • FAFSA on the Web
  • 'The Mass Production of Credentials: Subsidies and the Rise of the Higher Education Industry.' "The Independent Review" 15 (3): 325–349
  • ed.gov
  • studentaid.ed.gov
  • Pell Grant Fraud Awareness: White-Collar Crime Challenges FBI

pell, grant, subsidy, federal, government, provides, students, need, college, federal, limited, students, with, exceptional, financial, need, have, earned, their, first, bachelor, degree, enrolled, certain, post, baccalaureate, programs, through, participating. A Pell Grant is a subsidy the U S federal government provides for students who need it to pay for college Federal Pell Grants are limited to students with exceptional financial need who have not earned their first bachelor s degree or who are enrolled in certain post baccalaureate programs through participating institutions 1 2 Originally known as a Basic Educational Opportunity Grant it was renamed in 1980 in honor of Democratic U S Senator Claiborne Pell of Rhode Island 3 4 A Pell Grant is generally considered the foundation of a student s financial aid package to which other forms of aid are added 5 The Federal Pell Grant program is administered by the United States Department of Education which determines the student s financial need and through it the student s Pell eligibility The U S Department of Education uses a standard formula to evaluate financial information reported on the Free Application for Federal Student Aid FAFSA for determining the student s Expected Family Contribution EFC 6 Pell Grants were created by the Higher Education Act of 1965 These federal funded grants are not like loans and need not be repaid Students may use their grants at any one of approximately 5 400 participating postsecondary institutions These federally funded grants help about 5 4 million full time and part time college and vocational school students nationally 7 As of the 2017 2018 academic year the top three funded universities by total grant money were CUNY 638 million SUNY 323 million and the University of Phoenix 197 million three of the top ten funded colleges were for profit colleges 8 Contents 1 History 1 1 Higher Education Amendments of 1972 1 2 Education Amendments of 1978 1 3 Recent legislation 2 Application 2 1 Eligibility 2 2 Award amount 3 Uses of grant 4 Impact 5 Appropriations 6 Awards information 7 Federal Pell Grant lifetime eligibility calculator 8 See also 9 References 10 External linksHistory editThis article needs to be updated Please help update this article to reflect recent events or newly available information March 2014 Today the Pell Grant program assists undergraduates of low income families who are actively attending universities and or other secondary institutions However before the Pell Grant became what it is today it went through numerous changes In 1965 Congress passed the Higher Education Act of 1965 HEA President Lyndon B Johnson implemented the HEA as a part of his administration s agenda to assist and improve higher education in the United States It was the initial legislation to benefit lower and middle income students The HEA program included not only grants but also low interest loans to students who did not qualify for grants Universities and other institutions such as vocational schools benefited as well from the HEA program by receiving federal aid to improve the quality of the education process Student aid programs administered by the US Department of Education are contained in Title IV of the HEA and so are called Title IV Programs In 1972 Title IX Higher Education Amendments were a response to the distribution of aid in the current grant Senator Claiborne Pell set forth the initial movements to reform the HEA Lois Rice an American corporate executive scholar and education policy expert is known as the mother of the Pell Grant for her work lobbying for its creation Opportunity Grant Program Basic Grant were intended to serve as the floor or foundation of an undergraduate student s financial aid package Other financial aid to the extent that it was available would be added to the Basic Grant up to the limit of a student s financial need Most changes to the federal student aid program result from a process called reauthorization Through the process of reauthorization Congress examines the status of each program and decides whether to continue that program and whether a continued program requires changes in structure or purpose Congress has reauthorized campus based programs every five or six years beginning in 1972 In 1994 Congress passed the Violent Crime Control and Law Enforcement Act VCCLEA a provision of which revoked Pell Grant funding to any individual who is incarcerated in any federal or state penal institution 9 A provision of this Act overturned a section of the Higher Education Act of 1965 which created the Pell Grant for postsecondary education The provision reads No basic grant shall be awarded under this subpart to any individual who is incarcerated in any Federal or State penal institution 9 Prisoners first became eligible for basic grant funding in 1972 As the principal design of the Pell Grant was to help low income individuals attain post secondary education including prisoners was consistent with the goal The grant aimed to reach those who might not otherwise have an opportunity to enroll in college study or vocational training programs Including prisoners for funding was based on the notion that higher education improved the lives of inmates reduced recidivism and contributed to a more orderly institution 10 There has been some advocacy for reinstating Pell Grant funding for all prisoners who would qualify despite their incarceration status by members of the House of Representatives who introduced the Restoring Education and Learning Act REAL Act in the spring of 2014 10 At the executive level the Obama Administration backed a program at the Department of Education that would have allowed for a limited lifting of the ban for some prisoners called the Second Chance Pell Pilot 9 11 The ban was lifted by the Consolidated Appropriations Act 2021 12 Higher Education Amendments of 1972 edit nbsp Claiborne PellThe Higher Education Amendments of 1972 reauthorized the three campus based programs leaving the Economic Opportunity Grant Program with the same name but renaming the two others the National Defense Student Loan Program became the National Direct Student Loan or Federal Direct Student Loan Program and the Federal Supplemental Educational Opportunity Grant Program SEOG In addition for profit schools became eligible to use Title IV Funds Also the Educational Opportunity Grant Program was changed to no longer function as a stand alone program of gift aid but instead was linked with the Basic Grant Program In 1978 the Middle Income Student Assistance Act of 1978 MISAA was signed into act by President Jimmy Carter This bill provides more generous Basic Educational Opportunity Grant Pell Grants to low income students and makes students from families with incomes up to about 25 000 eligible An additional 1 5 million students from middle income families became eligible for the Basic Grants program 13 Education Amendments of 1978 edit Starting in 1978 families were able to borrow 300 a year for each dependent child in school regardless of income Recent legislation edit Several changes to the program occurred in 2011 The maximum award amount for the 2011 2012 award year is 5 500 14 Despite a shortened application process fewer funds for the 2011 2012 program could lead to financial problems for many students The government funded the program at 17 1 billion from 2008 to 2010 as part of the American Recovery and Reinvestment Act of 2009 However the additional funding does not match the needs of increasing numbers of students who enroll in college and qualify for aid through the recession 15 The Pell Grant program was subject to a 5 7 billion decrease in funding as part of a continuing resolution H R 1 which cleared the House in February 2011 and cut about 60 billion from the federal budget 15 The changes would take effect for the 2011 2012 school year decreasing the maximum amount of aid for the most needy students from 5 550 to 4 705 a year in addition about 1 7 million students who receive smaller Pell Grants would become ineligible for the program Approval for the cuts is not certain because of long standing bipartisan support from the Senate 15 As of April 6 2011 funds have not been approved as the Senate has not voted to pass this legislation The program provided grants ranging from 555 5 550 to over 9 million students in 2011 2012 with awards totaling 33 575 066 024 16 In August 2022 President Joe Biden announced that up to 20 000 of debt would be canceled for Pell Grant recipients 17 Application editThis section needs additional citations for verification Please help improve this article by adding citations to reliable sources in this section Unsourced material may be challenged and removed February 2012 Learn how and when to remove this template message The application process requires the student and the student s family complete a Free Application for Federal Student Aid FAFSA form The applicant should complete the FAFSA form for the first time prior to starting the freshman undergraduate year and then update the form each year as the applicant progresses through the college undergraduate term The first step in applying for the Pell Grant is to complete or update the FAFSA form on or after October 1 of each year If an applicant must correct a completed FAFSA form it can be done in step 3 of the application in the Make corrections to a processed FAFSA section When the student completes or updates the FAFSA application answers to questions determine eligibility for the Pell Grant among other government grants and funding After the initial FAFSA application is submitted the student is notified by email or regular postal delivery if funding is awarded Copies of the confirmation sheet should be made for personal records 18 Eligibility edit The U S Department of Education has a standard formula that it uses to evaluate the information that each person supplies when applying for the Pell Grant The formula used was created by Congress from criteria submitted through the FAFSA form The formula produces a number that is called the Expected Family Contribution EFC which determines the student s eligibility 19 This grant requires each applicant to be an undergraduate student who has not yet earned a bachelor s degree and a United States citizen or an eligible non citizen usually a permanent resident In addition the applicant must have a high school diploma or a GED or be able to demonstrate the ability to benefit from the program 6 Applicants must also sign a statement certifying that they will use the aid only for education related purposes that they are not currently in default for any federal student loans and that they owe no refund for any federal education grants The Pell Grant also requires that students maintain satisfactory academic progress in a degree oriented program as defined by the school they attend A person may be eligible if previously incarcerated but with limited eligibility depending on the offense 20 Students must not have an outstanding Pell overpayment on record Additionally an applicant may not receive Pell Grant funds from more than one college at a time 6 Award amount edit As with all grants there is a maximum amount that the government funds for each applicant The maximum amount for the 2022 2023 award year is 6 845 The maximum Federal Pell Grant for the 2023 24 award year July 1 2023 through June 30 2024 is 7 395 21 The maximum amount of the grant usually depends on the EFC and several other factors including cost of attendance the amount of time the student plans to attend college whether it is a full academic year and whether one is a full time or part time student 6 Once one has been considered eligible the money can be obtained a couple of ways the student s school can apply Pell Grant funds to school costs pay the student directly usually by check or combine these methods The school must tell the student in writing how much the award will be and how and when it will be paid and it must disburse Pell Grant funds once a semester term or twice during the academic year 6 Under certain circumstances Pell funds can also be used to fund Career Pathways programs and support services 22 Uses of grant editTypically the college first applies the grant or loan money toward a student s tuition fees and if the student lives on campus room and board Any money left over is paid to the student for other expenses books living expenses if the student does not live on campus and transportation 1 2 Impact editStudents coming from low income families already face increased challenges that hinder their ability to receive a higher education The Pell Grant addresses one of the issues by making college accessible to students that may need the financial assistance It has been shown to increase the college enrollment of students coming from lower and moderate income families It can also reduce the chances of them dropping out 23 There have been advocacy efforts to reinstate prisoner eligibility for Pell grants as a preventative to re incarceration In 1997 one study on 3 200 prisoners in three states showed that receiving education while incarcerated reduced the likelihood of re incarceration by 29 percent 24 Lynn Novick the director of College Behind Bars and a collaborator with Ken Burns recently wrote in the Seattle Times about how access to college education in prison was markedly reduced Higher education in prison was commonplace in America until 1994 when the Clinton Crime Bill banned federal Pell Grants for people in prison Overnight college behind bars was decimated Privately funded programs like the one we visited the Bard Prison Initiative BPI slowly sprang up but they do not begin to fill the enormous need She argues that access to education may help reduce the high recidivism rates of 50 60 and reports that Of the 600 BPI alumni who have been released in the past 20 years only 4 have gone back to prison 25 Appropriations editParts of this article those related to this section need to be updated Please help update this article to reflect recent events or newly available information November 2019 Fiscal Year 2011 41 674 180 000 Fiscal Year 2010 21 772 000 000 Fiscal Year 2009 19 378 000 000 Fiscal Year 2008 16 256 000 000 Fiscal Year 2007 13 660 711 000Note The amount for FY 2006 includes 4 3 billion to retire prior year funding shortfalls the amount for FY 2008 includes 2 billion in mandatory funds Note The amounts for FY 2008 and FY 2009 include 2 000 000 000 and 2 100 000 000 respectively in mandatory funds In addition the 17 114 000 000 in 70 U S Department of Education Recovery Act funds includes 1 474 000 000 in mandatory funds of which 831 000 000 is for use in academic year 2010 11 Note The amount for FY 2009 includes 2 090 000 000 in definite mandatory funds and 16 283 000 000 in American Recovery and Reinvestment Act of 2009 funds of which 643 000 000 is mandatory The FY 2010 appropriation amount includes 5 299 816 000 in indefinite mandatory funds The FY 2011 appropriation above includes 13 500 000 000 in mandatory funds to help reduce discretionary need and 5 218 184 000 which is the estimate of indefinite mandatory funds needed 26 Awards information edit2011Amount of Aid Available 35 772 935 000 Amount of Aid Available represents the amount of funds to be awarded to participants in this program Number of New Awards Anticipated 9 413 000 Average New Award 3 800 Range of New Awards 555 5 550 2010Amount of Aid Available 32 295 226 000 Amount of Aid Available represents the amount of funds to be awarded to participants in this program Number of New Awards Anticipated 8 355 000 Average New Award 3 865 Range of New Awards 555 5 550 2009Amount of Aid Available 25 328 889 000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs Depending upon the program this total may include federal appropriated dollars institutional or state matching dollars and federal or private loan capital Number of New Awards Anticipated 7 022 000 Average New Award 3 611 Range of New Awards 486 5 350 2008Amount of Aid Available 16 428 110 000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs Depending upon the program this total may include federal appropriated dollars institutional or state matching dollars and federal or private loan capital Number of New Awards Anticipated 5 578 000 Average New Award 2 945 Range of New Awards 400 4 731 2007Amount of Aid Available 13 989 305 000 Amount of Aid Available represents the amount of funds awarded to participants in the Federal Student Aid programs Depending upon the program this total may include federal appropriated dollars institutional or state matching dollars and federal or private loan capital Number of New Awards Anticipated 5 339 000 Average New Award 2 620 Range of New Awards 400 4 310 27 Federal Pell Grant lifetime eligibility calculator editThe scheduled award is the maximum amount of Federal Pell Grant funding a student can receive is calculated for an award year An award year is a period from July 1 of one calendar year to June 30 of the next year The scheduled award is partially determined using the student s expected family contribution EFC which the program calculates from the information the student and family provided in the Free Application for Federal Student Aid FAFSA The result is the maximum amount the student can receive for the award year if enrolled full time for the full school year It represents 100 of the Pell Grant eligibility for that award year To determine how much of the maximum six years 600 of Pell Grant the student uses each year the U S Department of Education ED compares the actual amount awarded for the award year with the scheduled award amount for that award year A student who uses 100 receives the full award A student might not receive the entire scheduled award for an award year most commonly if the student did not enroll for the full year did not enroll full time or both If the student does not receive the full award ED calculates the percentage of the scheduled award they received Before the 2011 2012 Aid Year the FAFSA limit was 18 semesters but it was cut to 12 semesters by Congress ED tracks the Lifetime Eligibility Used by adding the percentages of the Pell Grant scheduled awards a student receives each award year 28 See also editStudent financial aid in the United StatesReferences edit a b Federal Pell Grants are usually awarded only to undergraduate students U S Dept of Education Retrieved March 10 2017 a b Wondering how the amount of your federal student aid is determined U S Department of Education Retrieved March 10 2017 Nietzel Michael T Democrats Reintroduce Bill To Double The Pell Grant Forbes Retrieved October 6 2021 Ford William D October 3 1980 H R 5192 96th Congress 1979 1980 Education Amendments of 1980 www congress gov Retrieved October 6 2021 Federal Pell Grants PDF Department of Education Retrieved April 6 2011 a b c d e What is a Pell Grant College Board Retrieved March 26 2011 Federal Pell Grant Get Ready for College Minnesota Office of Higher Education Archived from the original on February 17 2011 Retrieved March 26 2011 Distribution of Federal Pell Grant Program Funds by Institution and Award Year U S Dept of Education August 31 2017 Retrieved April 16 2018 a b c SpearIt January 6 2016 Keeping It REAL Why Congress Must Act to Restore Pell Grant Funding for Prisoners SSRN 2711979 a b SpearIt July 25 2014 Restoring Pell Grants for Prisoners Growing Momentum for Reform SSRN 2814358 The Second Chance Pell Pilot Program A Historical Overview AEI Archived from the original on March 27 2018 Retrieved February 12 2018 Americans support for college financial aid for prisoners depends on how the benefits are described Carter Jimmy November 1 1978 Education Amendments of 1978 and the Middle Income Student Assistance Act Statement on Signing H R 15 and S 2539 Into Law University of California Santa Barbara Retrieved March 26 2011 Federal Pell Grant Program U S Department of Education Retrieved June 7 2011 a b c Hopkins Katy March 2 2011 Potential Cuts to Pell Grant Could Affect Students in 2011 U S News Retrieved March 26 2011 2011 2012 Federal Pell Grant Program End of Year Report PDF Douglas Gabriel Danielle Stein Jeff August 24 2022 Biden to cancel up to 10 000 in student debt for most borrowers and 20 000 for Pell recipients The Washington Post Retrieved August 24 2022 What happens after I submit the application U S Dept of Education Retrieved June 17 2018 The EFC formula 2022 2023 PDF U S Dept of Education Students with Criminal Convictions U S Dept of Education December 1 2014 Retrieved September 11 2015 Pell Grant Maximum for 2023 24 Announced StudentAid gov Retrieved April 12 2023 Funding Career Pathways Pell Grants PDF Center for Law and Social Policy Archived from the original PDF on September 30 2011 Retrieved August 9 2011 Boteach Melissa Stegman Erik Baron Sarah Ross Tracey Wright Katie April 14 2015 The War on Poverty Then and Now PDF Center for American Progress pp 1 34 SpearIt July 15 2016 The Return of Pell Grants for Prisoners SSRN 2814364 Lynn Novick College Behind Bars Education s transformative power for America s incarcerated men and women Seattle Times January 12 2019 A17 Funding Status Federal Pell Grant Program September 20 2021 Funding Status Federal Pell Grant Program ed gov November 21 2011 Retrieved February 5 2014 Calculating Pell Grant Lifetime Eligibility Used Federal Student Aid U S Dept of Education June 15 2012 Retrieved February 5 2014 External links editFAFSA on the Web The Mass Production of Credentials Subsidies and the Rise of the Higher Education Industry The Independent Review 15 3 325 349 ed gov studentaid ed gov Pell Grant Fraud Awareness White Collar Crime Challenges FBI Retrieved from https en wikipedia org w index php title Pell Grant amp oldid 1197207545, wikipedia, wiki, book, books, library,

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