Pell Grant

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The Pell Grant program is a post-secondary education subsidy run by the Federal government of the United States, and is the largest need-based grant aid program in the country. It is named after Senator Claiborne Pell, though its actual name is the Basic Educational Opportunity Grant program. They are awarded based on a "financial need" formula determined by the U.S. Congress though criteria submitted through the Free Application for Federal Student Aid (FAFSA).

Because of the high levels of need required to obtain a Pell grant, receipt of them is often used by researchers as a proxy for low-income student attendance.

Federal budget legislation passed in early 2006 cut the federal financial aid budget by $12.5 billion. While the maximum Pell Grant legislative limit was raised to $5,800 through 2011, maximum Pell grant awards were not funded at this level. The maximum award available to students has been frozen at $4,050 since 2003-04.

For 2006-07, the maximum Pell grant available to students remains $4,050. Due to high increases in the cost of post-secondary education and slow or no growth in the Pell grant program, the value of Pell grants has eroded significantly over time. In 2005-06, the maximum Pell grant covered one-third of the yearly cost of higher education at a public four-year institution; twenty years ago, it covered 60% of a student's cost of attendance, this however also allows a greater number of students to benefit.

[edit] External links

• FAFSA on the Web