Tag Archives: Pell Grant Money

What Happens to Unused Pell Grant Money?

Pell Grant is an educational grant given by the US Federal Government to low income families with average income of up to $60,000. Pell grant prioritizes families with lower average incomes who experience more financial difficulties especially in paying for college tuition fees. Families with incomes of less than $20,000 account for more than 57% of all grants awarded in 2006.

The Federal Government courses the Pell Grant Money through accredited institutions. These accredited institutions have two ways of giving the Pell Grants to students. First is disburse the grant to the students school account, and second is to give the money to the student, usually covered by a check. Pell Grant is paid every term period.

The Pell Grant is computed using a standard formula created by the US Department of Education. The average Pell Grant paid to students per term is averaged $2,970 in the school year 2008-2009. For the school year 2010-2011, Pell Grant Money given to students range from $550 to $5,550. Factors that affect the size of grant given to a student are family size, the parents income and assets if the student is dependent on the parents, the number of children supported by the parents who attend post-secondary education, the cost attendance, and if applicable, the income of the student if he is supporting himself for college.

Can You Claim Unused Pell Grant Money?

Many people end up having excess Pell Grant. For example, they are awarded $5,000 in Pell Grant, but the cost of attendance is only $1,500 per semester. If the school has two semesters, that leaves the students an excess of unused $2,000 in Pell Grant. If you have excess Pell Grant, you cannot DIRECTLY claim this in cash. The Financial Aid Office limits the use of Pell Grant for COST OF ATTENDANCE ONLY. What you can do is to reimburse this excess fund using receipts that fall under Cost of Attendance. This includes boarding fees, transportation fees, books, computers, daily allowance for food, and other miscellaneous fees related to school. Pell Grant will likewise cover expenses like supplies, fuel, and software that are directly related to school.

What if the Pell Grant was Disbursed to the School?

If your Pell Grant was directly disbursed to your school account, excess of it will be issued by your school through a check if all your tuition, fees, boarding, and other education-related expenses have been paid. The excess Pell Grant Money is legitimately yours, assuming that they make up for the various Cost of Attendance you paid for independently. If you have excess Pell Grant balance since Fall, the school will normally give you part of the Pell Grant, and keep the rest for you to use the following semesters in spring and summer.

Get financial assistance from your government to get you through college. To apply for a Pell Grant, start by submitting a Free Application for Federal Student Aid or FAFSA, accessible through this website fafsa.ed.gov. Application for the FAFSA is free. 

Can a school hold Pell Grant money with no outstanding balance?

Education is certainly important, which is why the government has taken active steps to help people who are seeking further education to try to improve their career path once they graduate. The Pell Grant is a federally-approved grant given by the government to students with financial needs so that they can get their degrees from participating institutions. There are several requirements that the student will need to fulfill in order to be given a Pell grant. Furthermore, he or she will need to have not received his or her Bachelor’s degree yet and should be enrolled in one, or else enrolled in a post-baccalaureate program that is eligible for certification.

The participating institutions can either put the Pell Grant money directly into the student’s school account or give the money to the student directly, or combine both methods. The students should be paid at least once for each term (which can be a semester, trimester, or quarter) that they are enrolled in. For the academic institutions that do not follow these periods, they must give the money to the grantee at least twice for every academic year that they are enrolled in and are qualified for the Pell grant. Once the student has received the money, he or she is tasked with the responsibility to use the funds exclusively for his or her education, as per the agreement they signed when they applied for the Pell grant. They must also be able to show that they have a good academic standing in order to continue to benefit from their Pell grant, that is, by getting more funding for their education. They can do this by showing their good progress in their degrees. Furthermore, the student must have a good standing in other federal student loans as well. There are various ways in which the Pell grant can be forfeited, so the grantee must need to take care in order to prove that he or she deserves the financial aid being given by the government.

Generally, the school has no right to hold Pell grant money if the student does not have an outstanding balance that would need to be settled. However, the Financial Aid Office or the Office of the Bursar of your school may be keeping the money intact for you until you contact them. Any remaining amount from the grant that remains should be given to the student, which again, should be used for academic-related expenses. For example, if your grant is $3,000, and your school fees are only $2,500, you are entitled to a disbursement of $500. This also means that you will not get any disbursement should the Pell grant money be just enough. In cases when the grant is not enough to pay for your school fees, the remaining amount should come from your own pocket, unless you are receiving financial aid from a different institution.

Bear in mind that the Pell grant money is distributed over the academic year, so it is possible for the academic institution not to be actually holding the money; the Pell grant itself hasn’t sent in the money in the first place, or you are not owed any excess funds at that point in time.

What the Pell Grant Money Can Be Applied too?

Students from low-income families are eligible for a Pell Grant. This scholarship is available from and awarded by the Federal Government. However, it is not disbursed by the Department of Education or any other Federal institution. The awarded sums are paid to students by the school they are attending. These education bodies are responsible for determining what the money can be applied to, but only to a certain extent. Read on to find out more about the different arrangements and what they mean to students.

Each school has a specific method for disbursing the money form the Pell Grants of their students. There is one rule that should be kept – the payments must be made at least two times per academic year or once per term, whichever is applicable. Form then on, the school decides where the money goes. There are three main options. The entire sum may be applied towards your tuition fees. The Pell Grant money can be paid to you directly. This usually happens in the form of a check. Alternatively, the school may apply part of the entire sum towards tuition fees and the rest can be given to your directly.

There are cases, in which the sum available from the Pell Grant is larger than the tuition fee for the respective academic year. If this happens, the outstanding amount is disbursed directly to the student. You have to keep in mind that you will not lose the money and you do not have to repay it in any way.

Generally, any amount of money that you have from your Pell Grant is yours to spend. Just take into account the fact that when applying for the scholarship you have signed an agreement to apply the money only towards costs related to your education. This means that you can spend it on anything you need during the academic year.

You can use the Pell Grant money available to you directly to pay for room and board, rent, if you live in your own place, books, equipment, such as a computer, and even clothing and food. It is perfectly possible for you to save part or the entire available sum. Still, if you have only part of your tuition fee covered by the scholarship, you have to make sure that you will be able to pay the rest out of your pocket.

You are not required to account for the Pell Grant money you have spent to anyone. Still, it is a good idea to keep your budgeting under control and to keep a record of what you are paying for. This will help you manage your finances. It can also come in handy in case any questions regarding your use of the grant arise.

Overall, the Pell Grant money you have available directly to you can be applied towards any expenses you have during your studies. Spend and/or save it wisely. Keep in mind that you can be disqualified from the Federal Pell Grant Program if your GPA drops below 2.0.