One of the most widely available grant programs for students entering college is the Federal Pell Grant program. These are one of the few government sources of "free" money for college. Students who are eligible for Pell Grants do not have to pay back the money. They are also not awarded based on grades. This is a needs-based grant program that awards money based on a student's Expected Family Contribution. Those who have significant financial need can receive money.

The amount of money you can receive through a Pell Grant changes from year to year. The government decides how much money to put into the program, and that dictates the amount of the award. It's also based upon what an Expected Family Contribution will be, the cost of tuition, and whether or not you are a full-time student. In regard to the 2008 2009 school year, for example, students could receive the maximum amount of $4731.

Pell Grants and Financial Aid Online

One interesting difference between the Pell Grant program and the federal loans is that students are not subject to a lifetime cap. With the federal loans, there is a limit on how much money a student can borrow. You're only limitations with the Pell Grant are determined by the number of students using the grant, and all it takes you to get your bachelors degree. If that takes eight years, the money is available for eight years.

The only way to apply for a Pell Grant is to fill out the FAFSA. Honesty is imperative, because if you don't report all assets or income, you could be subject to very tough penalties, including possible time in jail. This form is used to determine your Expected Family Contribution. If you think your family has too much money or too many assets, fill out the form anyway. it uses a complicated formula to determine eligibility, and you may qualify for some help that isn't apparent to you at first glance.

Since this is also the way to qualify for federal loan programs, go ahead and fill it out. The form will go to your college, where they will subtract the Expected Family Contribution from the cost of attendance to determine how much you will be expected to pay. If you are going to get some Pell grant money come you'll get a letter telling you so. You can't do anything else to increase your chances of getting this money. While you're waiting to hear whether or not you've gotten a Pell Grant, make sure you look for other options as well. Even if you do receive a Pell Grant, it will not be sufficient to pay for all of your schooling, so keep your eyes open for other help.