Federal And State Aid Programs Federal Pell Grant

The Federal Pell Grant, which does not have to be repaid, is a federal program designed to provide financial assistance to undergraduate students who demonstrate a financial need to attend college. The U.S. Department of Education uses a standard formula, established by Congress, to evaluate the information reported on the FAFSA. The formula produces an Student Aid Index (SAI) number. The Student Aid Report contains the (SAI) number, which determines eligibility.

The Federal Pell Grant award amount depends on the student’s SAI, the student’s cost of attendance, whether the student is full-time or part-time, and whether the student attends school for a full academic year or less. Students must be enrolled in an eligible program consisting of at least 18 credits in length. Students with bachelor’s degrees are not eligible.

Effective July 1, 2012, Federal Pell Grants are limited to a lifetime maximum of the equivalent of 12 full-time semesters or six years (600 percent) for community colleges, vocational schools, four-year public and private universities. Limits will be tracked by the U.S. Department of Education for each institution the student has attended.