Financing your online education is the most difficult part of the application process. There are a number of options to consider when you are deciding how to pay for school , but the most affordable financial aid is in the form of a grant.

Unlike federal student loans like the Stafford Loan , a grant does not have to be repaid. The government has established the Pell Grant as a free, need-based solution for paying for college.

The United States Department of Education determines grant eligibility and amounts using a formula established by Congress. A number of factors are considered. To be eligible for a Pell Grant , a prospective student must demonstrate a financial need. The amount of money the student's family expects to contribute to online education is an important consideration. This amount is called the Expected Family Contribution (EFC).

The EFC is determined by adding a percentage of the student's net income to a percentage of his or net assets. Rates and allowances are adjusted, depending on whether the student is dependent or independent, and whether he or she has dependents.

Pell Grants are generally issued to students with a family income of less than $20,000.

Other points of concern include the student's enrollment status, and whether the student will attend for a full year or less. Currently, the maximum grant amount is around $4,500.

Typically, only undergraduate students may receive a Pell Grant , but the occasional exception is made for post-graduate students who demonstrate significant need and academic qualification. Additionally, a student may not receive a Pell Grant for more than one school at a time.

Although repayment is not required of students who complete their classes, those who drop out will be expected to pay all or a portion of the Pell Grant amount, depending on the percentage of classes attended.

To apply for a Pell Grant , a student must submit a Free Application for Federal Student Aid, also known as the FAFSA. The FAFSA can be obtained from any high school counselor or college admissions office, as well as at most libraries and community agencies. The FAFSA can also be completed and filed electronically at www.fafsa.ed.gov.

Paying for school is challenging for most college students. Six months after graduation, borrowers must face their debt and begin repaying loans. A Pell Grant is an opportunity to avoid additional student debt. If you are considering financing your education, don't forget to check your eligibility for a Pell Grant . Even if you only qualify for a small amount, you will never have to worry about repayment or interest on that sum.

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