Eligibility for the Federal Pell Grant

Eligibility for the Pell Grant is based primarily on financial need.

A federal Pell Grant is a grant used to help defray the cost of attending college, university or vocational school. It is awarded solely on the basis of need, not academic ability. The money does not have to repaid but you must meet certain eligibility requirements. The maximum amount you can receive depends on a complicated formula that assesses your financial needs. In the 2010-2011 year, the maximum Pell grant award was $5,500.

Basic Criteria

In order to be eligible for a Pell Grant, you first need to meet certain basic criteria. You need to have a high school diploma, or a general education development (GED) certificate. If you were home schooled, you can still qualify for a Pell Grant, but your home school environment must meet all laws in your state regarding home schooling. If you lack these qualification, you can still qualify for a Pell Grant as long as you have already completed six credit hours or more towards a degree or certificate. You must also be either enrolled or accepted in a recognized degree or certificate program. Some distance education courses are also eligible--check with your student aid adviser to find out if your course qualifies.

Other Criteria

In order to qualify for a Pell Grant, you need to be a United States citizen or an eligible non-citizen--such as a permanent resident. You must also have a Social Security number. Before you can be awarded a Pell Grant you will need to register with the Selective Service, if required. You must also certify that you are not behind in any payments on federal student loans you may have already received. You must also certify that the money from the Pell Grant will be used only for education.

Financial Criteria

Your financial eligibility is determined using a formula that calculates the Expected Family Contribution (EFC), the amount your family may be expected to contribute towards your education. This number is then subtracted from the cost of attendance at your college to determine your eligibility. The formula used to determine the EFC is complicated, and is calculated after you and your family have filled in the Free Application for Federal Student Aid (FAFSA) form. This form asks for information about your income and assets, your parents' income and assets, size of your household, number of people attending college in your household and parents' age and employment status. Families with an EFC below a certain level are eligible for a Pell Grant. In 2010-2011, the EFC cutoff was $5,273.

Maximum Amount

In some cases, your family's EFC can be automatically set at zero--entitling you to the maximum amount for a Pell Grant. Dependent students may have their EFC set at zero if anyone in their parent's household received benefits from a federal means-tested benefits program, such as food stamps, SSI, the Free and Reduced Price School Lunch Program or WIC and their parents' income was less than $30,000 in the previous tax year. Your EFC may also be set at zero if your parents are not required to file a tax return or are dislocated workers. Students who are independent, including emancipated minors, adult students and students with dependents of their own, use a different set of criteria to determine the EFC. They still apply for the Pell Grant in the same way, by filling in and submitting a FAFSA form.