What is a Pell Grant and Where's the Pell Grant Form?

"What is a Pell Grant?" asked by students who need money for college, usually means: "Is it a government student loan?"; "Will they check a credit score?"; and "Will it increase my student loan debt?"

The answer is no; a Pell grant is nothing like college loans for students.

• Federal Pell grant qualifications have nothing to do with your credit score.
• Pell grant eligibility has nothing to do with your ability to repay.
• Your federal Pell grant application is confidential and the results will not be reported to any credit agencies.

These are need-based, never repay, government grants for college.

When the program started in 1972 as the Basic Opportunity Grant Program (BEOG), the idea was to equalize the financial aid that was available at different schools. These grants were supposed to be just the "floor" of a student's aid package. School-based aid (as much as possible) would be added until the student's "financial need" was met.

Well, it didn't quite work out that way because tuition prices skyrocketed, while Pell grant amounts increased much more slowly.

But an important principle was established: the grant aid was attached to the student, instead of the school. Wherever a student chooses to go to school, the money follows. (up to the COA- cost of attendance)

The BEOG was renamed "Pell Grants" in 1980 after Rhode Island's Senator Claiborne Pell.

Currently, funding for the grants is discretionary; President Obama has sought to make it mandatory. A proposed bill in the House combines both types of funding. If it passes (and it probably will) the mandatory portion of the funding will rise each year until 2019. This will force the maximum grant amount to increase every year.

For individual students in the 2010-2011 school year, the:

• maximum grant is $5,550
• minimum grant is $659
• average grant is around $2,500

Your award may be reduced if you do not meet Pell grant requirements.

Students may use these grants at approximately 5,400 schools.

The Pell grant application form is the FAFSA. You should apply for the Pell grant online at http://www.fafsa.ed.gov/, but its also a good idea to download a printable FAFSA application so that you have a written record of each year's federal Pell grant application to refer to.

When you know your FAFSA EFC and the cost of attendance for schools you are interested in, use the Pell grant calculator to find out what your award should be.