The United States Department of Education gives grants and scholarships to students, which have been generally framed with an aim to assist them to refund heavy and troublesome payments of college fee in the nation.
The Federal Pell Grants stand out distinctively and exclusively from student loans such as Perkins, Stafford and PLUS federal loans in the manner that they don’t have to be repaid.
There are no formalities fixed to grants in contrast to loans where the students have to sign authorized papers for reimbursement of the principal money with interest. Scholarships are rather monetary gifts.
Pell grants was established in the year 1972 as the Basic Educational Opportunity Grant with an aim to give support and achieve educational goals of children belonging to financially weakened group of community.
One thing is largely noticed that children belonging to middle to upper income families pursue a college degree while only half of the children belonging from lower income families go on to attain a college degree.
Thus Pell Grants have helped millions of students in achieving college degree and fulfilling their wish of making their own exclusive place in the society. Indeed this grant program has been always at the mercy of whims and fancies of political and budgetary considerations of federal government yet it has remained a cherished and invaluable source of funding monetary worried students. Moreover it has come to light that fewer students are getting helped by Pell Grants as federal student loans have become more pervasive.
Students who can testify their financial need are awarded federal Pell Grants. For applying for the same, they require paperwork to be completed for the determination of their Estimated Family Contribution (EFC). The EFC is the number accredited to the application of borrower on the basis of financial information of the household as such disclosed by the applicant.
If the benchmark of getting the Pell Grant is fulfilled, then the money is provided to the candidate on the ground of EFC number, whether the undergraduate would register for a college course on a full-time or halftime basis and number of times the undergraduate plans to take part in academic programs in an academic year.
Millions of qualified students receive the Pell Grant annually and most of them belong to the families whose annual income is below $20,000.
Statistics reveal that on an average, annual private college tuition fees is more than $20,000 whereas tuition fee of public university or college is half this amount.
So one can see the financial hardships faced by the students of low-income family. These Pell Grants come as a rescue boat for impoverished students for the accomplishment of their dreams of attaining higher education.
John Goldman is one of the foremost advisor in matters relating to Government Grants and Financial Aid. To learn more about government grants and how to apply for them visit the Government Grant USA website
