The Pell Grant income qualifications that are going to allow you to qualify for a Pell Grant are vital to understand if you are going to count on receiving this award for the upcoming school year. The Pell Grant is designed for students who demonstrate a significant financial need for additional funding so that they can attend college.
Therefore it is better to have a lower income, than a higher income if you want to satisfy the litany of federal Pell Grant qualifications that pertain to financial need. It is pretty much impossible to say exactly what the exact income thresholds are that will allow you to qualify for the grant, and rather it is better to get an idea of how your level of income is used to calculate your eligibility instead.
Methodology for Calculating Need
Essentially a formula is used that takes into account all of the information you submitted when you sent in your FAFSA application. This formula uses your personal income, as well as your family’s income as the most important factors in determining a final result, but these are not the only factors that play a significant role.
Things such as you and your family’s income taxes, state of residence, whether or not both parents work, value of current assets, your parents age, the number of family members in college, and the number of people in your household will all play a part in calculating a final result that is meaningful.
Once all of these factors are taken into consideration, a formula is used to determine a final result, and the product of this formulas is the metric commonly known as the EFC, or expected family contribution. The EFC is the ultimate end-product of the aforementioned calculation, and upon knowing this metric you can have a good idea about your chances of receiving a Pell Grant.
Expected Family Contribution and Income
The standard threshold that is being used for the 2013-14 school year is set at 5,081 dollars, and the lower your EFC is below that number, the better your chances are at receiving the grant. While it is impossible to clearly define the Pell Grant income qualifications that will result in an EFC lower than this standard because of the presence of other factors besides income, you can establish a probability that is based upon general statistics.
The vast majority of federal Pell Grants are given to individuals who have families that make under thirty thousand dollars per year. Families that make between thirty, and sixty thousand dollars per year still have a chance at getting approved for the award, although the likelihood decreases significantly as your income increases above sixty thousand dollars per year. Taking this into consideration you can get a better idea of your chances of getting the award for the following school year, and always remember that you don’t have to apply for a Pell Grant via a separate application, as the only application you need to fill out to make yourself eligible is the FAFSA.