Would somebody mind explaining to me how pell grants work?

Question

The school is about as clear as mud on this.

What I'm assuming is this, based on what information I was given:

They calculate how much I need to finish the year, then it's divided into semesters.

The school is given this and I'm given a credit page telling me how much I can spend at the book store.

Whatever left over, the school issues a check to me to spend on whatever else I need for school.

Maybe?

Answer 1

You pretty much have it correct.  Each school has a cost of attendance, which includes tuition, fees, and books.  Pell will give up to that cost of attendance, or less if the cost of attendance exceeds the Pell grant.  The annual total is divided into two payments, coinciding with the start of fall and spring semesters.  If you want to use the aid for summer term you have to save it from those two dispersements.

The money is issued to the school.  At the beginning of the semester your school will tell you what you have available to use for books in the school bookstore so you don't have to come up with the cash ahead of time - usually a few hundred dollars.  Then a couple weeks into the semester any money not used toward tuition, fees, and books is dispersed to you, either on a school Visa card or via check.

One thing you need to watch out for - READ ALL THE FINE PRINT.  Schools like to tie up your excess funds so you don't get a check.  They "hold" it toward future tuition and fees.  So be very careful what you sign.  Don't sign away your right to that dispersement unless you want them to hold it until you have completed the entire course of study.

Answer 2

I got a pell grant in 1980 for Junior college, (yes I am old, ha,ha) - anyway, back then all they did was cut me a check, I paid the tuition then pocketed t he rest.  They didn't cover all the supplies at that time, but it was a help.

Answer 3

in a nutshell...

the fafsa application will give you and the school an EFC number.  If that EFC is less than about 4000 you will usually be eligible for all or part of the Pell grant.  The Maximum Pell grant for next year is $4,731.00  Generally, this dollar amount is divided in half.  So your school will allocate half in the fall and half in the spring for you to use to pay tuition, fees, books, room, board.  If your school is less than this, you will be issued the difference.

If your school is more than what you get in Pell grants.  Remember some folks don't get any Pell, some only get a couple of hunded dollars a semester, then  you will be responsible for paying the rest of your tuition and other expenses to the school.  OR you can take out a student loan to help you.  (Max Stafford loan you can borrow as a freshman dependent student is 3,500 a year).  More if you are independent.

this is the long version...