Students considering applying for a Pell Grant during the 2010-11 school year should first identify what the maximum available award amount is for this particular academic term. The Student Aid and Fiscal Responsibility Act, or SAFRA has increased this maximum award amount to 5,550 dollars for all students who are attending class on a full time basis, a two hundred dollar increase from the previous year. To become eligible for this maximum award amount students must demonstrate an exceptional financial need, which is primarily determined via the expected family contribution, or EFC.

Students having an EFC value below 5,273 will be able to qualify for the Pell Grant, although the actual award amount they receive will vary in reference to their level of need, cost of attendance, and enrollment status. Most students end up receiving about half of the full award amount, although students that come from families who aren’t able to contribute any capital towards their education related expenses will almost always end up with an EFC of zero, and thus become eligible for the full amount. Students should also be aware that the maximum Pell Grant amount will increase according the Consumer Price Index plus one percent beginning in 2013-14. This was done to keep the Pell Grant in line with the rate of inflation, although it remains to be seen whether or not this modification will truly have an effect.

Overall the Pell Grant can provide students with a substantial amount of funding to utilize towards their higher education, and when used in combination with the assortment of federal student loans that are available, students who demonstrate a very high financial need should have no problem getting a large proportion of their tuition paid off via federal student aid. The current administration plans on expanding the overall reach of not only the Pell Grant program, but other federal student aid programs as well over the next few years or so. It remains to be seen what kind of effect this will have on a student’s ability to get the financial aid they need to pay for school, although most experts agree that it should only have a positive effect over the long-term. If you are interested in applying for a Pell Grant, or for any other form of federal student aid, you need to complete the FAFSA. The FAFSA is the government’s universal application for federal educational assistance, and the deadline for submitting one is set at June 30.