For college students, financial aid may come in a variety of forms. A grant is an amount of money that can be used for tuition, but does not need to be paid back after the student graduates.http://studentaid.ed.gov/PORTALSWebApp/students/english/PellGrants.jsp The Federal Pell Grant is offered to those students that have not yet achieved a bachelor's degree and are attending a college or university that participates in this program. The Pell Grant, as it is sometimes referred to, is funded by the U.S. government and regulated by the U.S. Department of Education.http://www2.ed.gov/programs/fpg/index.html Students may qualify for this grant if they meet the current requirements such as citizenship, enrollment in a qualifying school, has no defaulted student loans and meets the income limits. http://www.collegeboard.com/student/pay/scholarships-and-aid/36318.htmlGrant amounts are pro-rated, whereas they are determined based upon the number of credits a student is enrolled for.http://www.bmcc.cuny.edu/finaid/grants/pell.html#eligibility Students will either receive their funds by check or the funds will be directed to their student account.

Originally named the Basic Educational Opportunity Grant, the Pell Grant was first awarded in 1972. It's sole intention was to allow young people from lower income families the opportunity to attend college.http://www.collegescholarships.org/grants/pell.htm In 1980, this grant was renamed for Rhode Island Senator Claiborne Pell who was an instrumental leader in passing the original legislation that led to success of the Pell Grant. http://cbs5.com/national/pell.grant.founder.2.898487.html

• The amount of financial assistance made available by the Federal Pell Grant has increased significantly over the last 3 years. In 2007, the funding available was approximately 14 billion dollars. In 2009 that amount rose to over 25 billion dollars. The average amount of each grant has also increased with the maximum amount being $5,550 in the 2010-2011 school year. http://www2.ed.gov/programs/fpg/funding.html

• After July 2008, students are limited to 18 semesters for being eligible for the Pell Grant. Those students that wish to accelerate their coursework may qualify for an additional grant in one year. http://www.collegeboard.com/student/pay/scholarships-and-aid/36318.html

• In 2008-2009, the average grant awarded was $2,971http://www.getreadyforcollege.org/gPg.cfm?pageID=139&1534-D83A_1933715A=f07538b484e4efd0ba6d933da0d63412d7e48b3c

• Applications for the Federal Pell Grant can be found on the Federal Student Aid website at www.fafsa.ed.govwww.fafsa.ed.gov or by contacting FASFA Information Center at 800-4-FED-AID (433-3243). http://www.collegeboard.com/student/pay/scholarships-and-aid/36318.html

The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here..