Pell Grants to See Largest Increase in Over 10 Years, Reaching Maximum of $7,395

Congress has proposed a $1.7 trillion spending package for 2023, which includes an increase in the maximum annual Pell Grant award to $7,395 - a $500 increase from the current school year.

If it is approved, this would be the biggest increase for the grant in more than 10 years.

President Joe Biden has expressed his desire to increase the Pell Grant to a maximum of $8,670 by 2023 and to double the amount by 2029.

Pell Grants are a major form of financial assistance for college students, with over 6 million recipients in 2020.

Annually, Congress determines the amount of money to be given out as the maximum Pell Grant, and in certain years, they have decreased the amount.

It is important to understand the details of the help that is available.

Mark Kantrowitz, a higher education expert, has stated that for the 2023-2024 academic year, Pell Grants could range from a minimum of approximately $740 to a maximum of $7,395, depending on the amount a college determines a student's family can contribute to their college expenses.

At present, the maximum amount of money a student can receive annually through this program is $6,895.In certain situations, a student may be eligible to receive more than the maximum amount of financial aid for a single year if they are enrolled in an accelerated degree program, according to Kantrowitz.

Kantrowitz reported that in 2015-2016, the majority of Pell Grant recipients were from households with incomes of less than $60,000.

Betsy Mayotte, president of The Institute of Student Loan Advisors, has previously stated that Pell Grants are designed for families with very low incomes.

Financial aid is usually only accessible to undergraduate college students.

A recent report has revealed that one in five young adults have debt in collections. As a result of the pandemic, many members of Generation Z are spending the holidays at home with their parents. Additionally, the survey found that a majority of Americans, 63%, are living paycheck to paycheck.

The U.S. Department of Education's student aid website can provide information on what financial aid you may qualify for.

In order to be eligible for a Pell Grant, you must fill out the Free Application for Federal Student Aid (FAFSA). Even if you think you may not qualify for aid, it is still recommended to submit the form, according to experts.

If you are currently enrolled in school and have not yet submitted the FAFSA, you may still be able to apply by June 30th and receive the grant for the current academic year.

College students can usually receive a grant for a maximum of six years, which is significant to be aware of since more than half of undergraduates take longer than four years to complete their degree.

Kantrowitz noted that most universities provide grants in two installments, one at the beginning of each semester.

He also noted that many universities prefer to provide financial aid in the form of regular payments, often referred to as "Pell as a paycheck."

According to Kantrowitz, Pell Grant money is primarily used to pay for tuition and fees. It can also be used to cover any college-owned or -operated housing.

Once all expenses are taken care of, the remaining funds are typically given to the student within two weeks, according to Kantrowitz.

He noted that the funds could be used to cover other expenses associated with college, such as textbooks.

Unlike a student loan, a federal Pell Grant does not usually require repayment.

Exceptions to the rule are few and far between, such as when a student's enrollment status shifts from full-time to part-time or if they decide to leave a program before its completion.