Tag Archives: Federal Pell Grant

Can you use Federal Pell Grant to pay off a debt at another school?

The Federal Pell Grant is just one of the many different ways students can get through college during times of financial instability. It is sponsored by the U.S. Department of Education and by far is one of the most appealing of all the grants available out there for the taking, specifically because as a loan, it does not require the borrower to pay back any amount whatsoever.

Yes, you read that right. The Federal Pell Grant is essentially free money. A Get-Out-of-College-Free card, so to speak, that is given to any and all qualified individuals for use with academic purposes during times of need. It can be used by a college student to pay for his or her college tuition fees as well as for various education costs like textbooks and other miscellaneous school expenses. As you can imagine, many people would like the chance to benefit from the Federal Pell Grant and so there are certain requirements that must be met by all applicants before they are deemed worthy of the grant.

How much does one stand to receive through the Federal Pell Grant? Not a whole lot, as it turns out, but it’s still something that can be put to good use especially by those who really need financial assistance. Adding the fact that it doesn’t even have to be paid back only adds to its appeal as a very useful grant that should not be overlooked by anyone.

The amount given through a Federal Pell Grant is usually just under $5,000 at most, but even this small amount can be used to pay for college tuition fees and to buy collegiate materials like text books and other things. Even though it is just a small amount, it can prove to be instrumental in a college student’s journey towards graduation.

So how exactly does one qualify for the Federal Pell Grant? Qualifying for a Federal Pell Grant isn’t like qualifying for a loan that takes credit scores into consideration. In fact, credit loans have absolutely nothing to do with Pell Grants. Qualifying to a Pell Grant is based on an individual’s financial standing first and foremost, and several other things which will be mentioned below.

First, an applicant must be an undergraduate student that is currently enrolled in an approved course. Applicants must possess either a high school diploma, GED, or at least be able to show how he or she will benefit from receiving the grant. The applicant must be a U.S. citizen, permanent resident, or an eligible non-citizen with a Social Security number. Finally, applications are more likely to be approved for those who have family incomes of less than $40,000 per year.

In case you were wondering whether you could use a Federal Pell Grant to pay off a debt at another school or not, the answer is no. If you currently owe money to a school, that means you aren’t currently enrolled. And as written above, the Federal Pell Grant is only given to undergraduate students who are enrolled at the time of application. This means that the Federal Pell Grant won’t be able to help you unless you are already studying for your bachelor’s degree in college.

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.

How to Apply for a Federal Pell Grant

Students from low income households are eligible for scholarships provided by the Federal Government. The Federal Pell Grant is a scholarship which is part of the Federal Student Aid program. The funds are directly available upon approval of the candidates. You will receive the money and you do not have to return it. It is worth considering this grant and applying for it. Here is how to do it.

In order to apply for a Federal Pell Grant, you need to complete the Free Application for Federal Student Aid (FAFSA). You can fill the application online. It is available on the official FAFSA website. There you will find instructions and advice on how to fill in the form depending on your individual student status. You should be careful not to miss the deadlines for the respective award year.

The Free Application for Federal Student Aid is the only application for the Federal Pell Grant. Basically, it is for federal aid in general. Your application will be reviewed. The information you have reported in the FAFSA form will be used in a special formula. This formula is designed to determine your expected family contribution (EFC) status. This is the main factor that will determine your eligibility. The lower your EFC is the larger the Federal Pell Grant sum awarded to you will be. Other factors, such as your individual cost of attendance and your student enrollment status, will also determine the size of the grant. Still, these aspects do not contribute to your eligibility.

After you have filled in and sent the Free Application for Federal Student Aid, you will receive your EFC score. You will be officially notified of your EFC status with a Student Aid Report (SAR). Alternatively, your school will receive an Institutional Student Information Record (ISIR). These papers should state clearly whether you are eligible for a Pell Grant or not. If you are eligible, then you will get the scholarship automatically.

The school you are attending has to notify you about the size of the grant you will receive. They should also inform you when and how you will receive the grants awarded to you. If you do not receive any formal letter from your school after the SAR and/or ISIR is available, you should contact the financial aid office of the school and get the information. They should be able to tell you what additional documents they will need from you. These usually include federal tax returns, bank statements regarding savings and loans and W-2 information.

Make sure you know how much you will receive, how and when. This is really important because in some cases the Federal Pell Grant is directly applied towards your tuition costs while in others you can receive part of the sum or all of it directly. There are differences since schools determine how and when to disburse the Federal Pell Grant.

Overall, you simply need to fill in the FAFSA form and wait for the results. You will be notified whether or not you are eligible for the Federal Pell Grant. If you are, it will be awarded to you straight away. You do not need to fill in separate or additional applications.