College expenses can be overwhelming, particularly if you come from a low-income family. Some lower-income individuals don�t even think about going to college because of their financial problems. Nevertheless, there is a solution: the Pell Grant.

What is a Pell Grant?

Free money. A Pell Grant is a financial-needs-based Federal government grant that you never have to repay. It was named after U.S. Senator Claiborne Pell. This grant was created to help the poor receive a college education. Consequently, it is only available for low-income undergraduate students.

These grants must be used at one of the 5,400 participating colleges and universities. Your school will either use this money to pay your tuition and fees or pay you directly, or both. Funds are disbursed at least once a semester.

How Much Money Can I Get?

How much grant money you get depends on a few things: your family�s income, the cost of attendance, and whether you are enrolled full time or part time.

The 2006-2007 maximum Pell grant available was $4,050. For 2007-2008 it is now $4,310. As you can see, the maximum is subject to change each year depending on program funding. The maximum grant is expected to increase to $5,400 by 2012.

Grant money is helping low-income families all over the United States send their children to college. How do I get one

To apply for a Federal grant you have to fill out a Free Application for Federal Student Aid (FAFSA). You can complete a FAFSA online or through your Financial Aid office.

If you wish to do this online, you much first obtain a PIN (Personal Identification Number.) You can do this at www.pin.ed.gov.

As you fill out your FAFSA, you will want to have a few documents nearby. These documents are your Social Security card , driver's license, previous years W-2 form, last years Federal Income Tax Return, your parents' Federal Income Tax return from the previous year, and a few other things.

After completing a FAFSA (you can do this at fafsa.ed.gov), you will receive a Student Aid Report (SAR) which will tell you whether or not you are eligible for a Federal Pell Grant.

This academic year�s FAFSA deadline has already passed. You can�t get a 2007-2008 application anymore. Nevertheless, don�t give up hope! You can apply for a Pell Grant next year as long as you send in the application by June 30, 2008. Do not miss the deadline again!

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To learn more about grants and scholarships please visit our Student Finance Options page. Being a college student herself, Elise Fisher enjoys writing articles for her website About-Student-Loans.com and other finance options.