Students with high financial need may be eligible to receive Federal Pell Grants, the most popular federal grant given primarily to low-income undergraduate students. Pell Grants, as with all grants, do not have to be repaid, and eligibility is based on a number of criteria related to your level of unmet need in pursuing your college degree. Students whose families have a total income of up to $50,000 may be eligible for the need-based funding, though most Pell grant money goes to students with a total family income below $20,000.

    Your eligibility will be determined by the FAFSA (Free Application for Federal Student Aid) . The U.S. Department of Education uses a standard formula, established by Congress, to evaluate the information you report when you apply for the FAFSA. After you’ve completed the financial aid application, you’ll receive a confirmation e-mail letting you know your application has been processed and providing you a link to your Student Aid Report, or SAR. You’ll also be able to view your Expected Family Contribution (EFC), the number that determines your eligibility for federal grants, and how much you’re eligible for. From there, your information is also sent to the school or schools you indicated on your FAFSA.

    Your eligibility for the Pell Grant can only be determined after you have completed the FAFSA application. The Department of Education starts accepting the FAFSA Jan. 1 of each year. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor’s or professional degree. (A professional degree is usually obtained after a bachelor’s degree in a field such as medicine, law, or dentistry.) In some cases, you might receive a Pell Grant for attending a post-baccalaureate teacher certificate program. Pell Grants are usually a foundation of financial aid, and often determine your eligibility for other federal grant programs like the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Academic Competitiveness Grant (ACG).The maximum grant amount will be set at $5,500 for 2010-2011, and fromthere on out, it will increase in step with the consumer price index,plus 1%.