Pell Grants are one of the biggest options in the world of student financial aid. They are the biggest federal grant program for undergraduate education. Pell Grants are vital tools for helping many low income students attend college. Pell Grants are designed to help the neediest students and are “gifted” using a tiered approach. Grants are awarded to undergraduate students based on calculations of size of family, their income, and assets that could be used to fund school as well as likely tuition costs.
Grants, much unlike loans, never have to be repaid. Pell and other grants are available from the federal government, state government, schools, and private organizations. They are typically targeted at undergraduate, graduate and research students. Pell Grants are one of the most significant forms of student financial aid today. They help some of the neediest students in the America. The Federal Pell Grant Program does provide grants based on need to lower income, undergraduate and certain post baccalaureate students to promote access to advanced education. Pell grants are usually paid directly to the college, which will then use the money to pay off tuition, fees, room, board, or any other bills you may be owed to the school. Most Pell Grants are need based and are awarded to the most financially needy students. There is never any charge to apply for the Federal Pell Grant. Students and or families with incomes up to $60K per year may be eligible for Pell Grants. Pell Grants and the Expected Family Contribution Federal Pell Grants are given to needy students based on their Expected Family Contribution, which is figured out by using the assets and income of both the student and their parents. Grants are renewable each year based on acceptable academic progress and sustained financial eligibility. Grant amounts are calculated based on the student's enrollment status at the end of the second week of a semester. In 2010-2011, the grants values ranged from $555 to $5,550. Pell Grants are usually accepted at most universities, community colleges and many trade and tech schools.

Remember that Pell Grants are only a single form of student financial aid. With a few exceptions, Pell Grants are offered only to undergraduate students for a max lifetime limit of 18 semesters or the equivalent. Unfortunately recent report estimates from the Department of Education signify Pell Grants are facing a $6 billion deficit next year, generally as a result of a weakened economy and an increase in unemployed students returning to school.