Pell Grants are federal student aid programs administered by the United States Department of Education. They are full grants that do not require repayment and are awarded solely on the basis of financial need. The need criteria for Pell Grants are determined by information submitted by applicants or a proxy, usually their parent, via the Federal Application For Student Aid, which is based on a formula dictated by the United States Congress (FAFSA).
Senator Claiborne Pell of Rhode Island helped pass a bill introducing educational assistance in 1973, after a few years of agitation. Pell, a Democrat who took office in 1960 after years of service in World War II and years on reserve afterward, was a firm believer in the importance of education. The Pell Grants, formerly known as Basic Educational Opportunity Grants, were designed to assist inmates in attending college after they were released from prison. Pell Grants were thus seen as a way of reducing the number of prisoners returning to prison by providing them with a strong hand upon their release to help them break free from a criminal lifestyle. Pell also sponsored the bill that established the National Endowment for the Humanities and the National Endowment for the Arts, in addition to the Pell Grants.
Pell Grants have historically covered a significant portion of the total tuition to a private college, allowing students from low-income families to attend without incurring significant debt. However, as the cost of education has risen dramatically while the amount awarded by Pell Grants has only increased slightly, Pell Grants’ relative value has dwindled significantly. While students in desperate need could once count on a Grant to cover the majority or all of their education costs, nearly all students in need now must either take out large student loans or win a slew of additional awards.
The American Recovery and Reinvestment Act of 2009 set the maximum amount of money a Pell Grant could award at $4,860 USD for the 2009-2010 school year. Pell Grants no longer make nearly as much of a difference as they once did, with tuition at many private schools exceeding $40,000 USD and even many private schools exceeding $10,000 USD. Nonetheless, being eligible for a Pell Grant is a welcome boost for many students, as it eliminates at least some of their potential debt.
Pell Grants are only available to students who are in desperate financial need. This is determined by examining the Expected Family Contribution, which is calculated using information from the Federal Application For Student Aid. Pell Grants, as well as other government assistance, such as government-subsidized loans, may be offered to students whose families are deemed unable to contribute more than a certain amount.
More than half of Pell Grant recipients come from families with a combined income of less than $20,000 USD. Many sociologists use receipt of a Pell Grant as a measure of poverty because recipients’ income levels are consistently low. This can be used by researchers looking at economic diversity at a university to determine what percentage of the student body is likely from a low-income family by simply looking at how many students received Pell Grants, especially those for the maximum amount.