A PELL GRANT is a subsidy the
U.S. federal government
Pell Grants were created by the
Higher Education Act of 1965
* 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 References * 9 External links
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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
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.” 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.” 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 inmates, reduced recidivism, and contributed to a more orderly institution. There is growing 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 2015. Education represents an opportunity to take the straight and narrow, to break the cycle. At the executive level, the Obama Administration is backing a program under development at the Department of Education that would allow for a limited lifting of the ban for some prisoners called the Second Chance Pell Pilot.
HIGHER EDUCATION AMENDMENTS OF 1972
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, Proprietary (profit-making) schools became eligible to use Title IV Funds. Also, the Educational Opportunity Grant Program would no longer function as a stand-alone program of gift aid but instead would be linked with the Basic Grant Program.
In 1978, the Middle Income Student Assistance Act of 1978 (MISAA )
was signed into act by President
In 1978, the alterations to the HEA were made to honor Claiborne Pell with his hard work and dedication to improving the higher education of the students in the United States.
EDUCATION AMENDMENTS OF 1978
Families were now able to borrow $300 a year for each dependent child in school regardless of income.
Several changes to the program occurred in 2011. The maximum award amount for the 2011–2012 award year is $5,500. 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 2008–2010, 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. 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. 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 . As of April 6, 2011, funds have not been approved, as the Senate has not voted to pass this legislation.
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The application process requires the student and the student's family
Free Application for Federal Student Aid (
The 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
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. 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.
Pell Grant also requires that students maintain satisfactory
academic progress in a degree-oriented program as defined by the
school they attend. Males between the ages of 18 and 25 must register
Students may be ineligible if they have been convicted of a drug-related offense, but it depends on the actual charge, when it happened, and if they attended a drug rehabilitation program. They must not have an outstanding Pell overpayment on record. Students who received a full scholarship of any kind are ineligible.
An applicant may not receive Pell Grant funds from more than one college at a time.
As with all grants, there is a maximum amount that the government funds for each applicant. For the 2010–2011, 2011–2012, 2012–2013, and 2013-2014 award years, the maximum amount was $5,645. The maximum amount has increased for the 2014-2015 award year to $5,730. 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 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. Under certain circumstances, Pell funds can also be used to fund Career Pathways programs and support services.
Advocacy efforts are growing to reinstate prisoner eligibility for the Pell Grant. There is growing focus on education as a preventative to re-incarceration. An increasing number of studies underscore education as a critical factor. In 1997, one study on 3,200 prisoners in three states showed that simply attending school behind bars reduced the likelihood of re-incarceration by 29 percent.
USES OF GRANT
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.
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.
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. http://www2.ed.gov/programs/fpg/funding.html
2015-2016 (3rd Qtr) Award Year Grant Volume by School (Top Ten) SCHOOL STATE TYPE STUDENTS AMOUNT
University Of Phoenix
Miami Dade College
Ivy Tech Community College of Indiana
California State University Northridge
ITT Technical Institute
University of Central
Pennsylvania State University
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
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
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
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
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
FEDERAL PELL GRANT LIFETIME ELIGIBILITY CALCULATOR
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
ED tracks the Lifetime Eligibility Used by adding the percentages of the Pell Grant scheduled awards a student receives each award year.
* ^ A B "Federal Pell Grants are usually awarded only to
undergraduate students.". Retrieved March 10, 2017.
* ^ A B "Wondering how the amount of your federal student aid is
determined?". Retrieved March 10, 2017.
* ^ "Federal Pell Grants" (PDF). Department of Education. Retrieved
April 6, 2011.
* ^ A B C D E F "What is a Pell Grant?".