Changes predicted for the Federal Pell Grant Program

Changes predicted for the Federal Pell Grant Program
Changes predicted for the Federal Pell Grant Program

The Federal Pell Grant Program currently provides up to $5,550 in need-based grants for students, according to the U.S. Department of Education. This money does not need to be paid back. The amount received depends upon financial needs, costs of school, each student's full or part-time status and how long the applicant plans to attend a college.

Students who are given a grant after July 1, 2008 may receive benefits for up to 18 semesters. Applicants can apply for the program by completing FAFSA forms.

When money is received from the grant it can be applied directly to school costs or allocated personally, usually by a check.

Pell Grants may see changes in the future, however, due to a budget plan that could cut $100 billion from the program over 10 years, according to The Associated Press.

One possible change to is to eliminate a policy that allows students to collect two grants in one year: one for the fall and spring semesters and one for summer classes. Officials told the news source cuts are being considered in this area because there is little evidence that students who benefit from it earn their degrees faster.

The second change would reduce loan subsidies for graduate students.

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