The most common type of federal grant money is the Pell Grant. This is federal money that you do not have to pay back as long as you stay in school. Of course, not just everyone is eligible for the Pell grant.
When filling out your financial aid application, you will get back an EFC, which stands for Expected Family Contribution. This is a calculation that the government makes based on your answers in the FAFSA. This number is given to your school of choice and they will calculate a financial aid package for you.
The maximum Pell Grant for the 2004-2005 school was announced by Congress in January. The maximum Pell is going to stay at the same level as 2003-2004 at $4050. To be eligible for the grant, your EFC must be under $3850 once again.
For the 2003-2004 school year, the maximum Pell grant is $4050. You will not be eligible for the Pell if your EFC is greater than $3850. The key to a Pell grant is that you will have less debt after graduation.
Please keep in mind that just because your EFC is under $4050, does not mean you will get the maximum Pell grant. Please see our EFC page for more information regarding the EFC.
Please talk to your school about this money. This type of money will help prevent you from going into debt. Even though student loan debt is pretty low interest, you will want to stay away from the credit card debt.