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

The answer is no; a Pell grant is nothing like college loans or merit scholarships.

• Federal Pell grant qualifications have nothing to do with your credit score.
• Your Pell grant eligibility has nothing to do with your ability to repay.
• Your federal Pell grant application is the FAFSA and the results will not be reported to any credit agencies.
• Most students who are enrolled in college and have financial need (based on federal standards) can receive one.

They 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) and state-based aid would be added until the student's "financial need" was met.

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

But an important principle was established: the grant aid was attached to the student, instead of to 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 becomes law (A compromise version was passed in the 2010 Health bill.) the mandatory portion of the funding will rise each year until 2019. This will force the maximum grant amount to increase every year, after 2012.

For individual students in the 2011-2012 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 your school's minimum academic standards, or if your enrollment classification changes. These are part of the Pell grant requirements for any award year.

If you wish to attend a summer session as well as the fall and spring (and you meet the federal Pell grant eligibility standards) you may receive two awards in one school year.

Students may use these grants at approximately 6,000 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.

Find more specific information about

• Federal Pell grant changes
• Pell grant eligibility
• Pell grant qualifications