Federal Pell grants? How are they given.?

Question

i already paid my college tuition and books equalling about 600 dollars. i didn't think id get aid and i got a 2,025 dollars pell grant. How do they dispurse it . do you get a check or do they give it too the school. and do you have to put it on your taxes

Answer 1

Great question and congratulations on being accepted into college! Good for you! Federal Pell Grants are always disbursed to the school first. The reason being is if you have any outstanding balances from the school, they get their money first and disburse what remains. You will need to contact your Financial Aide Adviser regarding the disbursement date. There is normally paperwork sent to the student informing the student of how much Pell Grant they will be sending to the school. But it is the total amount of what you qualify for, if I recall correctly, two disbursement dates are selected. And yes, that money does have to be reported for taxes for either you or your parents. But verify this information for yourself sweetie, here's some links:

http://studentaid.ed.gov/students/publications/student_guide/2005-2006/english/types.htm

http://www.fafsa.us/index.htm

http://www.collegeanswer.com/paying/content/pay_grants.jsp (discusses tax benefits, like the Hope Credit)

http://www.ifap.ed.gov/pgrfmsprocess/attachments/2cImpGuideJan261H.pdf (might be useful but outdated)

Also, remember to try to keep on top of your paperwork and any discrepancies because if you don't it delays your money. Good Luck sweetie and be Safe...(smiles)

Answer 2

When I got mine, they paid it directly to the school. They split it up, half the first semester, half the second. I don't know if you have to put it on your taxes or not. You might want to ask the person in the financial aid department at your school. They might pay you back for the money you've already spent or they might keep the money and use it to pay your tuition or whatever other expenses you run into.

Answer 3

well it would go to your school for them to apply it to your tuition. since you already paid, the school will issue you a refund check but pell grants always go to the school. as far as reporting, i never report that stuff but the taxman might be looking for me so should you ask an accountant.

Answer 4

They will disperse it at the beginning of the semester for that semester at your school. It is non-taxable, so you do not claim it as income on taxes.

Best Wishes,

Sue