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For the 2013-14 academic year, over 1.3 million students qualified to receive a full Pell Grant valued at $5,645. Although this is great news, the federal government wasn’t too happy. Why? Because they insist that there are way more students who could qualify, but are refusing to apply.

 

Mark Kantrowitz, senior vice president at Edvisors Network, recently assessed the situation and claims that students are not filling out the free Federal Student Aid (FAFSA) applications. One of the main reasons Kantrowitz believes applications are not being completed is because most students and their families think they will not qualify for the grants or loans.

 

People often think they earn too much to qualify, but income is only one part of the equation. The eligibility for grants and the terms of federal loans are based on a variety of factors, including expected family contributions, income and assets, the number of children in the family who are in college and the cost of college.

 

“It’s a complicated formula that doesn’t require you to be living under the poverty line — you can still be a middle-income family,” he said. “You can’t get any financial aid if you don’t apply.”

 

Other excuses why students are not completing the applications were surveyed as follows:

 

  • 38% of families said they had no need to apply for aid
  • 34% said they didn’t want to take on debt  (this is a misconception; not all financial aid comes in the form of loans and Pell Grants don’t need to be repaid.)
  • 14% of students said they had no information on how to apply
  • 9% said the application process was too much work

 

Another misconception involves the annual household income. Although 98% of students who qualify report a household income of $50,000 or less, it is possible to qualify with a six-figure salary. It just all depend on certain circumstances.

 

If you are a student and need to apply for a Pell Grant or FAFSA, first you must meet the following qualifications:

 

  • Demonstrate financial need (as calculated by the school’s financial aid office)
  • Be a high school graduate or hold a GED
  • Be enrolled at least half time in an eligible undergraduate (or teacher certification) program
  • Be a US citizen or eligible non-citizen

 

Once a student determines he or she is eligible, they can complete the initial online application found HERE. After completion, the applicant will receive the official FAFSA application form, access to online tools and other resources.

 

 

Source: Money.CNN.com & FAFSAonline.org