The common complaint these days is that no banks are lending money, not even for student loans. If you were unable to get loans for your education, or even if you were able to get loans, have you investigated all the government grants available for college students? You might be missing out on free money via a Pell Grant.

Pell Grants are named after U.S. Senator Claiborne Pell and were originally known as the Basic Educational Opportunity Grant program. The grants, which do not require repayment, are awarded based on a “financial need” formula. The Pell Grant is covered by legislation titled the Higher Education Act of 1965, Title IV, Part A, Subpart 1; 20 U.S.C. 1070a.

Pell Grants have gotten a recent shot in the arm as part of the Economic Recovery Act. The Act “increases college affordability for seven million students by funding the shortfall in Pell Grants, increasing the maximum award level by $500, and providing a new higher education tax cut to nearly four million students”.

This Economic Stimulus money is now available, but you must apply NOW in order to meet certain deadlines:

1. Submit 2008-2009 FAFSA on the Web Applications by midnight Central Daylight time, June 30, 2009.
2. Submit 2009-2010 FAFSA on the Web Applications by midnight Central Daylight time, June 30, 2010.

How to Apply
The recommended way to fill out a FAFSA is online. The student should go to www.fafsa.ed.gov and follow the instructions. If the student is in a time crunch, the web route is definitely the way to go as online FAFSAs are processed much more quickly than the paper versions. It is possible to save an incomplete FAFSA and return to it later. This is especially useful when the student realizes he or she needs that information from the parent’s 1040 tax form!

The government has made it easier to manage your information and eligibility for government financial aid with a new online tool. The FAFSA4caster provides students with an early estimate of their eligibility for federal student financial assistance. Students considering furthering their education beyond high school can use this FREE tool at www.fafsa4caster.ed.gov:

• Calculate their eligibility for federal financial aid, including grants
• Reduce the time it will take to complete the Free Application for Federal Student Aid (FAFSA), the qualifying form for all federal student financial aid
• Keep informed about other types of financial aid available.

Don’t wait! Get your money now. If you’ve applied for a Pell grant, we want to hear from you. Leave a comment.

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