Pell Grant Qualification Income
Students that are considered loan income will qualify for a Pell Grant. Financial need is determined by the U.S. Department of Education using a standard formula, established by Congress, to evaluate the financial information reported on the FAFSA (Free Application for Federal Student Aid). The FAFSA is based on a studentís current income, all assets, total number of family members in school, and other quantitative measures in order to determine the family EFC.
The EFC, Expected Family Contribution, determines how much a student or studentís family is able to contribute towards their education. The lower a studentís EFC score, the more likely the student will receive some type of federal financial aid, such as the Pell Grant.
The fundamental elements in the standard Pell Grant Qualification Income formula are the student's income (and assets if the student is independent), the parents' income and assets (if the student is dependent), the family's household size, and the number of family members (excluding parents) attending postsecondary institutions.
The EFC is the sum of:
(1) A percentage of net income (remaining income after subtracting allowances for basic living expenses and taxes)
(2) A percentage of net assets (assets remaining after subtracting an asset protection allowance).
Different assessment rates and allowances are used for dependent students, independent students without dependents, and independent students with dependents.
After filing a FAFSA, the student receives a Student Aid Report (SAR), or the institution receives an Institutional Student Information Record (ISIR), which notifies the student if he or she is eligible for a Federal Pell Grant and provides the student's EFC.
Students with an EFC score of 0 will receive the full Pell Grant amount, since this score indicates that the student will not be able to contribute towards their education with the current income levels that they show on their FAFSA application.
Pell Grant Qualification Income Levels
Dependent Students that showed an income of $10,000 or less received the Pell Grant 99.11%, while Dependent students that had an income of over $80,000 received the Pell Grant .06%. Dependent students that have an income of $10,000 to $20,000 with receive the Pell Grant 96.15%, $20,000-30,000 income level received the Pell Grant 87.35% of the time. The chance of receiving a Pell Grant drops to 32% once the student shows an income of $40,000 or more. Once a Dependent studentís income level goes above $40,000 then they have less than 32% chance of receiving a Pell Grant.
Independent Students with dependents that showed an income of $30,000 or less received the Pell Grant 99.94%, while Dependent students that had an income of over $50,000 received the Pell Grant only 7% of the time. Independent students with dependents with an income no greater than $50,000 received the Pell Grant 78% of the time.
Independent Students with no dependents that showed an income of $13,000 or less received the Pell Grant 96% of the time. Once the Independent student has an income of $13,000 to $18,000 then only 31% qualify for a Pell Grant. Any independent student with an income over $18,000 has only a 9% chance of receiving the Pell Grant based on the current Pell Grant Qualification Income schedule.