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Pell Grants are federal grants for students in financial need to attend college, with no repayment required. They were introduced in 1973 by Senator Claiborne Pell to help reduce recidivism rates. However, the value of Pell Grants has decreased over time, and now many high-need students must take out loans or earn additional grants to pay for college. Pell Grants are awarded based on the expected family contribution, with more than half of recipients having a combined income of less than $20,000.
Pell Grants are federal grants from the US Department of Education to help students attend college. They are total donations, which require absolutely no reimbursement, and are given only on the basis of financial need. Pell Grants need criteria are based on a formula dictated by the US Congress and are determined by information submitted by applicants or an attorney, usually their parents, via the Federal Application for Student Aid (FAFSA).
In 1973, after a few years of unrest, Rhode Island Senator Claiborne Pell helped pass a bill introducing assistance for education. A Democrat who had come to office in 1960 after years of service during World War II and years later in the reserve, Pell was a firm believer in the value of education. The Pell Scholarships, originally known as Basic Educational Opportunity Scholarships, were primarily intended to help prisoners attend college upon release from prison. Thus, Pell Grants were seen as a way to help reduce returning prisoners, giving them a strong hand in their release, to help get them out of a life of crime. In addition to Pell’s grants, Pell also sponsored the bill that created the National Endowment for the Humanities and the National Endowment for the Arts.
Historically, Pell Grants covered a significant percentage of a private college’s total tuition, allowing students with limited resources to attend without going deep into debt. Over time, however, as the cost of education has increased dramatically and the value awarded by Pell Grants has increased only slightly, the relative value of Pell Grants has decreased significantly. While once high-need students may plan to pay for most or all of their education with a grant, virtually all high-need students are now required to take out substantial student loans or earn many additional grants.
In 2009, the American Recovery and Reinvestment Act set the limit on how much money a Pell Grant could award at $4,860 US Dollars (USD) for the 2009-2010 season. With enrollments at many private schools over $40,000, and even many private schools reaching over $10,000, Pell Grants don’t make nearly the difference they used to make. However, for many people the possibility of receiving a Pell Grant is a welcome incentive and eliminates at least a potential amount of debt.
Receiving Pell Grants requires the student to be in serious economic need. This is determined by looking at the expected family contribution, which is calculated by looking at the data provided in the Federal Application for Student Aid. Students whose families are deemed unable to contribute more than a certain amount may receive Pell Grants, as well as other government assistance, such as government-subsidized loans.
More than half of families receiving Pell Grants have a combined income of less than $20,000. Due to the consistently low income levels of beneficiaries, many sociologists use receipt of a Pell Grant as a measure of poverty. This can be used by researchers analyzing a university’s economic diversity, as by seeing how many students have received Pell Grants, especially grants at the maximum amount, they can determine what percentage of the student body is likely to come from an impoverished family.
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