Archive for the ‘Pell Grants’ Category
How To Apply For The Pell Grant Online
To apply for Pell Grant, you will need to fill up and submit the FAFSA (Free Application for Federal Student Aid) form.
There Are Three Ways In Which You Can Apply For FAFSA. You Can –
1. Call the FAFSA Student Aid Centre and ask them to mail a FAFSA form to your address. You can then complete the form and mail it to the concerned address.
2. Download the FAFSA form from the website, complete it and send it by mail to the given address.
3. Complete and submit the form, online.
The third option is the fastest and the most convenient. Even the federal student aid authorities encourage online submission of applications.
To apply for Pell Grant online, you would have to visit the website www.fafsa.ed.gov. The website has three sections “Before Beginning a FAFSA”, “Filling Out a FAFSA”, and “FAFSA Follow-up”. These sections provide instructions to the students to guide them through the process of application.
The first section “Before Beginning a FAFSA” provides tips to fill the FAFSA form accurately and quickly. On going through the section you will get an idea of –
• How to complete the FAFSA,
• How the financial aid given to a student is computed,
• The eligibility criteria,
• Deadlines for submitting the form,
• Details of the documents required, and
• How to generate a pin to sign your FAFSA form electronically
You will find a link for printing the FAFSA on the web Worksheet. It is advisable to take a printout of this worksheet, as it will give you an idea of how the FAFSA form is structured. You can gather the required details and fill it in the worksheet. This makes it easier to transfer the data to the FAFSA on the web.
In the next section, “Filling Out a FAFSA”, you can actually begin to fill up your form. If you have any doubts regarding a specific question you can either click the “Need Help” button or get help from a customer representative by clicking on the “Live Help” link. If you are unable to complete the application in one sitting you can always save it and resume later. Students who want to make corrections to a processed application can also do so in this section.
Once you have filled the form you will be required to sign it electronically through a PIN (Personal Identification Number). Your parents too will be required to sign with a PIN if you are a dependant. If you or your parents do not already have a PIN, you can apply for one and get it immediately. After you have signed and submitted the application, it will get processed. On an average, the processing time would be 2-3 weeks. Thereafter your Student Aid Report will be sent to you by the Federal Student Aid.
In the last section “FAFSA Follow-up”, you can check the status of your application. You can also see or print your Student Aid Report. Corrections to the processed application can also be made through a link in this section.
Though applying for the Pell Grant online is the most convenient, you should remember to do it well before the deadline. This would ensure that you do not enter wrong details in haste. This year Pell Grant Application deadline is on June 30, 2010.
How To Fill Your Pell Grant Application?
Pell grants are given to financially weak undergraduate students in US. This grant is available to students of bachelor’s degree or some skill based training program. Since, students are not required to repay this grant; it is very useful for them. It can help them pay for their college fees and other expenses required for pursuing the program.
If you to want Pell Grant, then it is necessary to fill its application form very carefully. This will increase your chances of getting this grant. To get the application form, you can visit the Free Application for Federal Student Aid (FAFSA) website. The deadline for filling the application form is June 30, 2010.
Tips To Fill The Application Form
Start Early
As this grant is offered on first come first basis, you should submit your application form as early as possible. You can also fill and submit the form online to save time. For filling the form online, you have to register on the FAFSA website to obtain the PIN (Personal Identification Number). Parents of dependent students should also apply for the PIN. The applications that are submitted online are processed earlier than those received by post.
Keep All Documents At Hand
You should keep all the documents that you have to submit along with the Pell grant application form, at hand. This will help you in completing the application process early. The documents that are required are –
• Driving License
• Social Security Number
• W-2 forms
• Bank statements
• Investments and debts statements
• Parents’ income tax returns (for dependent students)
• Self income tax returns (for independent students)
• Spouse income tax returns (if married)
Some other documents may also be required depending on the kind of program you are pursuing and other special conditions, if any.
File Your Taxes
You must file your taxes early, as you have to give the tax information in your Pell grant application form. This will help you in filling and submitting the form early. If filing the taxes early is not possible, you should keep ready the estimate for the same so that you can fill the application form. You can show the income tax returns later.
Read The Instructions
You should carefully read the instructions for filling up the application form. This will ensure that you fill your form correctly. You should check whether you fall in the category of dependent or independent student. A little carelessness can waste all your efforts.
Fill the worksheet and then the application form
The web worksheet allows you to see and answer all the questions before filling the form on the website. Once you have filled the worksheet, you can copy the data to the website. You are required to give your personal and family information. You have to answer few questions on your aspirations.
If you keep the above tips in mind, you will be able to successfully fill your Pell grant application form.
Can You Get a Federal Pell Grant with a Student Loan in Default?
Managing your finances while studying is hard, but it is extremely important. You must be extremely stringent and have everything under control. Letting things slip can really get you into trouble. The Federal Pell Grant offers a real financial relief. More importantly, it is a scholarship and not a loan, so you will not have to return the money. The Pell Grant is now more accessible than ever before, but the eligibility criteria remain as strict as before. You should look closely into the ones regarding loans in default.
It is not shameful to admit that you have a student loan in default. You should do your best to get it back in good standing since this can ruin your chances of getting a Pell Grant. Basically, you cannot be awarded this grant if you have defaulted on the repayment of a student loan. You cannot get any other form of financial aid from the Federal Government either. This means that you cannot receive other student loans to repay your defaulting one. These rules are also applicable to people who have any outstanding charges on Federal grants. For instance, if you had to return money and you did not do it, you are not eligible for more financial aid.
You should not despair for being ineligible to get a Pell Grant due to your student loan being in default. You have a number of options to solve the problem. It is a very good idea to contact your school’s financial aid office for advice. They might be able to do something for your case, if there are any special circumstances involved. You can also ask for other types of scholarships available from the school or from the local government. These might not have eligibility criteria regarding student loans. In fact, many grants available to top students do not have such stringent rules.
The other option you have in order to receive a Pell Grant is to actually repay some of your student loan so that it is not in a default status. It is true that this is more easily said than done, but you might not have another choice. It is a good idea to postpone your studies and get a well paid job to repay part of your loan and regain your Pell Grant eligibility. Alternatively, you can work while going to school, but in this case you will have more expenses and a smaller income.
It is best for you to try to sort things out as quickly as possible. You know what your personal circumstances are, so you need to look for an individual solution. Keep in mind that you need to get your loan in good standing and to repay any charges you owe for Federal grants, before you can apply for a Pell Grant again. You should also look into the other criteria for eligibility to make sure that you comply with all of them. Seeking help is not shameful. Quite the opposite, there are a lot of people ready to help you.
Getting Extra Pell Grant Funding for Extra Courses – Is It Possible?
Obtaining Federal student financial aid through your school is now easier than ever before. The process is simplified and the requirements are clearly stated. Still, there are some situations that are not explained in the general guidance booklets provided by schools. Given that the Pell Grant is the most common Federal Scholarship, it is perfectly normal for you to have additional questions regarding it. You should know what to do in case you take an extra college course.
The size of the Pell Grant you receive is determined by the number of credit hours and respectively by the number of courses you take. Students who have at least 12 credit hours per semester are entitled to receive the full amount of funding corresponding to their financial needs. Students with 6 credit hours per semester are considered to be on a half-time program. As a result, they receive a smaller amount of Pell Grant funding for their studies.
This means that you are entitled to receiving a larger Pell Grant, if you have less than 12 credit hours and you add extra courses to your program. Simply put, if you are a part-time student and you switch to full-time studies, you will be able to receive more money. However, if you are a full-time student and add some courses to your program, you might not be eligible for a larger Pell Grant. This is standard practice, but some schools may actually give more money to students in this situation. The important thing is that you can request the changes, so it is a good idea to give it a shot. Still, it is best to consult your school’s financial aid office for advice first.
The situation is different when you decide to enroll in a certificate course or other course that is not part of your degree. In this case, you are not eligible for extra Pell Grant funding, since you receive aid for your main program. Generally, you can get this scholarship for only one study program at the time. It can be a bachelor’s degree, an associates degree, a diploma program or a certificate course. The size of the grant is then determined based on the number of classes you have and on the number of credit hours you are earning. Still, if you have any money left from your Pell Grant, you can use it to pay for your extra course that is not part of your degree. This is definitely a beneficial option. You will not get into trouble since you will be spending the money for your education.
It is up to you to manage your finances as best as possible. It is a good idea to take advantage of all financial aid programs available, including the Pell Grant. Still, you cannot expect this scholarship to absolutely all costs that you might incur while studying. That is why you should not jump into asking for more money, if you know that you cannot get it from the Pell Grant. You can explore other options as well.
Pell Grant and Taxes – How It Works
Managing your finances on your own is not an easy task, but it does not have to be confusing either. The awarding of a Pell Grant is usually a very smooth process. This is equally true for its disbursing. You simply need to fill in the FAFSA and submit the necessary documents to your school’s financial aid office. Then you can readily take advantage of the funding. The things can get a bit more complex when it comes to completing a tax report. It is a good idea to learn more about this, so that you avoid any potential problems in the future.
The IRS treats the Pell Grant as a scholarship for determining tax treatment. Since this type of grant is considered to cover your cost of attendance and other relevant educational expenses only, it is tax free. This means that you do not have to file a tax return, if the Pell Grant is the only income that you receive. Similarly, you should not include it in the tax return form that you or your parents file for income earned from other sources.
Many students are confused by the fact that the Pell Grant is not taxable only if the money is spent on educational expenses. The latter term is very vague, but the IRS has given a definition for it. These expenses include tuition fees and other costs related to attendance, such as money spent on textbooks and other equipment. Still, grant money spent on room and boarding, travel and equipment not used for educational purposes is taxable.
These differences usually do not concern students receiving a Pell Grant since most, if not all of it, goes directly for covering tuition fees and other charges related to the cost of attendance. The school applies the money directly towards your account so that your debt to them is cleared. If there is a remainder left and you spend it on anything related to school, you do not have to report this income. Generally, this sum is usually very small, so you will not have a problem if you do not include it in your tax report, even if you spend it on childcare, for instance.
However, the situation is different if you receive the Pell Grant or part of it directly from your school in the form of a check. In this case, the income is still considered tax free provided that you can prove that you have spent it for education costs that qualify. For instance, if you use the money to pay your tuition fees, you do not have to include it in your tax return. However, if you spend it on your room and boarding, the income automatically becomes taxable. That is why you should be careful what you use the grant for.
Overall, you should follow the rules regarding the use of the Pell Grant and you will not have problems when it comes to filing your tax report. If your personal situation is more specific, you should ask a specialist for individual advice.