Can you get a Pell Grant if you are in a bankruptcy?
With an unstable economy due to the recent global economic crisis, there are quite a lot of people who are suffering from deep financial problems. While some might just lose their jobs or settle for a lower-paying job, some people find themselves in deeper financial holes and eventually file for bankruptcy. This may have a great impact in your life, especially if you still have your studies to worry about. Some students may even lose important privileges because of bankruptcy, including grants and other support for their studies. One question you may ask is if you can still get a Pell grant even if you are in a bankruptcy. This article will walk you through some of the facts that could shed light and answer this question.
Pell grants are given by the Federal government to deserving, low income students to support them with their education. This is a monetary support that could allow students to get up to $5500 in recent years. They can use this amount to help pay their tuition and other school fees, as well as help pay other college expenses. Recipients of a Pell Grant should not be more than 24 years old and is currently studying on a bachelor’s or associate’s degree. A Pell grant is given to a university, and the school will decide if you are eligible for it depending on the FAFSA or Free Application for Federal Student Aid. Pell funds are given out twice a year, even if the university does not use semester scheduling.
If you are worried that a Pell Grant won’t be given to you if you filed for bankruptcy, don’t be bothered. You can still receive the full amount of a Pell Grant since it is not based on your credit score. So yes, you can still receive Pell Grant even if you are bankrupt. If you file for personal bankruptcy if you are below 24 years old and an undergraduate student, there will be no effect on any government financial aid. You can even take out federal loans and still qualify for bankruptcy. However, if you are bankrupt, you are not eligible for private education loans since they’re greatly influenced by your credit record.
Now, if your parents are the ones who filed for bankruptcy and you feel that it will hinder you from receiving a Pell Grant, worry not because this also doesn’t affect your eligibility for the grant. As long as you fit the requirements, you are eligible for the Pell Grant, even if you are using their income information upon filing for student aid. Also, you can still apply for private education loans if you use your own information for application.
Despite the shaky economy and the financial struggles that you might encounter, the Federal government will do its best to support your education. Not even bankruptcy can stop you from getting the degree you want. So even if you or your parents filed for bankruptcy, you can still go ahead and apply for a Pell Grant.
Tags: bankruptcy, Pell Grant
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 Federal 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 Federal 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 Federal 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 Federal 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 Federal 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.
Tags: Federal Pell Grant, Student Loan in Default
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.
Tags: Pell Grant Funding
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.
Tags: Pell Grant and Taxes
What Colleges You Can Use a Pell Grant for?
The higher education gives you a lot of opportunities. You will be able to find a better paid job and pursue a more fulfilling career after you graduate. Higher education is expensive, but there are a lot of ways in which you can get financial aid. You can get a Pell Grant provided that you are a student from a low-income family who is on an undergraduate course. There are some requirements that your college has to meet as well.
In general, all types of colleges can participate in the Federal Pell Grant Program. You can get this scholarship if you are a student in a 4-year liberal arts college, community college, junior college and career college or a university. The only other condition regarding the educational institution is that it has to participate in the Pell Grant program. The information about their participation is on the website of every college.
The duration of the course you are enrolled in is not relevant. You can be on any summer, 2-year or 4-year program or any other course that leads to a degree or to the receipt of a diploma or certificate. Both full-time and part-time students are eligible for the funding. However, if you pursue a second bachelor’s degree, you are not eligible for a Pell Grant.
Basically, you can get this grant from any college, provided that it participates in the program for it. It is not uncommon for students to choose a school based on the funding they have available. If this is the case with you, you should take into account a number of factors.
The maximum Pell Grant that a college student can be awarded is $5,550. You will get two equal portions of this sum for each of the two semesters during the school year. Still, if your expected family contribution (EFC) is zero, this sum will be lower. Additionally, part-time students usually receive smaller sums that full-time ones.
It is common practice for colleges to apply the money you receive to your tuition fees (cost of attendance) directly. Thus, you should check the size of these expenses for the different schools you are considering. The maximum Pell Grant is insufficient to cover the tuition fees of most liberal arts colleges and universities, so you have to look for additional funding.
However, the grant can fully cover the cost of attendance of a community college. In this case, you might even have money left to yourself. Your school is obliged to disburse the remained directly to you. In turn, you can use it to cover any expenses related to your education. You can buy a new computer, get a card for the public transport, pay for your lunches at school or even cover childcare expenses. Generally, if you want your Pell Grant to cover your tuition and to get an overage, you have to look for a school with a lower cost of attendance.
Irrespective of the college you choose, you should apply for a Pell Grant as early as possible to get the funding on time.
Tags: pell grants for college
How Long You Can Use a Pell Grant for?
Any student coming from a family with an income lower than $50,000 per year can take advantage of the Federal Pell Grant Program. All students can apply using the standard Free Application for Federal Student Aid (FAFSA) form. The process is really simplified since you can fill in and submit your application online. However, the entire system is complex. As a result, it is perfectly normal for students to have questions regarding the duration of the Pell Grant.
You apply for a Pell Grant per academic year. As a result, you will get a sum of money for an entire academic year. The confusion comes from the fact that the grant is not disbursed in one tranche. The amount available to each student is split so that there is an equal sum for each term. In most cases, the students attend a fall and spring semester. In turn, they get half of the money in the fall and the other half in the spring. You do not have to reapply to receive the part of the Pell Grant for the second semester.
Still, if you start school in the spring semester or if you return after a leave, you can still apply for the grant and get it for this term. It is also possible for you to receive the grant automatically the following semester, if they fall in the same academic year for you. If your case is specific, you can ask your school’s financial aid office for individual advice.
It is now possible for a student to get Pell Grant funding for their summer courses as well. If you plan to take classes in the summer as part of your degree, certificate or diploma program, you can include this information in your financial aid application for the respective academic year. You simply have to check carefully which academic year the summer courses fall in.
Generally, the application cycle for a Pell Grant for an academic year starts on January 1st and ends on July 30th of the following calendar year. For instance, you can apply for a 2011/2012 grant from January 1st 2012 to June 30th 2012. This means that you have to reapply for a Pell Grant every academic year, preferably before its start. The earlier you apply the better. In this way, you will be able to get the sum you are eligible for before the start or soon after the start of the first semester.
Students can receive a Pell Grant for up to 18 semesters. If your school does not use this standard system, then an equivalent is applied. This rule gives you the option to apply for, get and use the grant throughout all 4-years that you need to complete a bachelor’s degree. The situation with students pursuing an associates degree is slightly different. You can use a Pell Grant for the 2 years of study for completing the degree. If you decide to pursue a 4-year bachelor’s degree, you will be eligible for the scholarship for 2 of these 4 years.
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