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What is a Pell Grant? & Pell Grant Application MISTAKES To Avoid - YouTube
Channel: The Scholarship System
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the pell grant is some of the best government聽
money that your student could possibly receive聽聽
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for college now you might be wondering why that聽
is and the reason is because it doesn't have to be聽聽
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paid back also it's not based on competitiveness聽
so your student doesn't have to write essays or聽聽
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interview or submit recommendation letters or聽
anything like that for it now that said in order聽聽
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to receive this money families do need to complete聽
a few specific steps correctly so in today's video聽聽
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i'm going to cover what the pell grant is how聽
they calculate who receives this debt-free money聽聽
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and how your family can increase your chances of聽
receiving the money i'm also going to cover some聽聽
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of the biggest mistakes that families make when聽
it comes to applying to the pell grant so that you聽聽
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can avoid making those mistakes too hello my name聽
is jocelyn pearson and all of this knowledge comes聽聽
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from our program the scholarship system and debt聽
free degree lab which is an online blog a course聽聽
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and a community for parents trying to figure聽
out how to get their students through college聽聽
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with as little debt as possible now if you are聽
new here please hit the subscribe button because聽聽
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we are releasing a new strategy every single week聽
that you can use to get your student towards that聽聽
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debt-free degree let's go ahead and begin so聽
what is the federal pell grant the federal pell聽聽
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grant is debt-free money that does not have to be聽
paid back it is from the federal government and聽聽
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it is something called an entitlement grant聽
so what this means is that your student if聽聽
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they are eligible for it they get it no matter聽
what school they go to as long as that school聽聽
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receives government funding and accepts fafsa聽
now this is one of the largest grants that is聽聽
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offered by the department of education and it was聽
created back in the 70s for undergraduate students聽聽
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now the amount changes a little bit it increases聽
every single year but at the time of recording聽聽
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this the maximum amount that your student聽
can receive for this per year is around 6 500聽聽
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and then it phases out depending on the level聽
of your family's financial need towards the聽聽
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end of this video i'm going to show you how聽
schools calculate what a student can receive聽聽
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and give you a few suggestions on how you might be聽
able to up that number now there's two different聽聽
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ways that a student can receive this money they聽
can either receive it through their account at聽聽
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the university it can be paid directly to the聽
student or it can be a combination of both聽聽
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comment below now will your student be applying聽
for the pell grant do you plan to submit fafsa聽聽
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if so then that is a way to submit for pell grant聽
i'll explain that in a moment but go ahead and聽聽
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comment below did you plan on applying for this聽
did you not if you did not let me know why because聽聽
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i'd love to respond back maybe i can help you聽
overcome that okay so let's talk about who is聽聽
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eligible for the pell grant first and foremost聽
they have to be a us citizen or a qualified聽聽
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non-citizen they also have to be an undergraduate聽
student pretty much they do they cannot already聽聽
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have an undergraduate degree there is there are聽
a few exceptions to this pretty much only for聽聽
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teachers that are getting recertification programs聽
so for the most part your student it has to be聽聽
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their first undergraduate degree now they have a聽
maximum of 12 terms that are allowed which if your聽聽
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student is a traditional student doing a fall and聽
spring semester then that would be considered two聽聽
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terms so it'd be basically for six school years or聽
if your student is doing a summer term then that聽聽
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would be three used per year so over four years it聽
would be fall spring and then summer that's three聽聽
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times the four years that's the 12 maximum total聽
a lot of families they always hear you have to be聽聽
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low income in order to receive money there is聽
plenty of money out there that is not based on聽聽
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you being low income however the pell grant聽
is one that is typically based on financial聽聽
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need so the way that they measure this is by their聽
efc which stands for expected family contribution聽聽
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and this number is the number that you聽
receive once you have completed and submitted聽聽
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fafsa so the only way to ever be eligible聽
for this to ever be considered for this money聽聽
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is by submitting fafsa now i have a separate video聽
on common fafsa mistakes and how to access fafsa聽聽
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scholarships so make sure you check that out聽
because i really stress the importance of this聽聽
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critical form in order to access money especially聽
if your family is potentially on the lower income聽聽
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side now there are some changes coming up聽
that they're calling fafsa simplification聽聽
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once those changes come into play the efc聽
is going to be renamed the student aid index聽聽
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so when that happens it's pretty much the same聽
exact thing as far as the number of the results聽聽
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that you get from fafsa now when i say that your聽
student has to have financial need typically that聽聽
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means that they have a low efc or sai student聽
aid index now when we're talking about low聽聽
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it can be around 6 000 or less in order to qualify聽
for money through the pell grants however there聽聽
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are always exceptions so again even if your family聽
gets a higher number than that you don't want to聽聽
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just assume that you won't get this money at the聽
link in the description there is actually a table聽聽
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that the government shares showing how much pell聽
grant money a student receives based on their efc聽聽
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so again you can't really get this until you know聽
your efc by submitting fafsa but once you get an聽聽
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idea of what that is you can actually look at this聽
table and get an idea for what kind of money your聽聽
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student qualifies for now one last point i want聽
to make around submitting fafsa it does open up聽聽
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october 1st of your student's senior year and you聽
want to resubmit it every single year so basically聽聽
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you're submitting it every fall until your student聽
is graduating from college again we'll link to聽聽
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our fafsa video fafsa scholarships 101 in the聽
description below so make sure you check that out聽聽
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for more information on fafsa so that you don't聽
make some critical mistakes that can hurt your聽聽
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chances of receiving this debt-free money now like聽
i mentioned there are some exceptions with this聽聽
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which include teacher programs but another聽
exception with this is if your student's efc聽聽
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is a little bit higher but they have lost a parent聽
to the military or being on the front line of duty聽聽
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then they might be eligible to have their efc聽
lowered to zero and then they would receive聽聽
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the maximum pell grant so this of course is聽
an exceptional situation and something that聽聽
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you definitely want to look into if your family聽
has experienced that now again i mentioned that聽聽
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if your family is not eligible for the pell grant聽
there is still tons of debt-free money out there聽聽
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and lots of sources that don't even necessarily聽
ask for the efc and so the biggest opportunity聽聽
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is scholarships and so i'm going to include a聽
link to a free training below where you can learn聽聽
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exactly where to find those scholarships that聽
are legitimate and have less competition so that聽聽
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your student can also apply for those so even if聽
your student does get this grant the pell grant聽聽
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or if they do not get the pell grant no matter聽
what you want to be applying to those scholarships聽聽
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so make sure you check out that free training聽
in the description below so let's get into聽聽
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how they calculate what your student would聽
get with the pell grant so the government is聽聽
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standardizing this process that's the idea they're聽
trying to simplify this and that is going to come聽聽
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with those simplification changes that are coming聽
up over the next few years but again truly it聽聽
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comes down to your expected family contribution or聽
your sai that number that you get as a result from聽聽
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fafsa now the calculation of that depends on a lot聽
of things including how many assets you have as聽聽
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a parent how many assets your your student has do聽
they have a 529 there's so many different numbers聽聽
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that are factored into it now from there your聽
students school will have a coa which stands for聽聽
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cost of attendance this number is not just tuition聽
but it is all the costs and expenses that your聽聽
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student can expect to have to pay for their degree聽
so it is a total estimated cost so when you're聽聽
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looking at that chart that i mentioned before that聽
i'm going to link to on the government's website聽聽
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you will see cost of attendance on one side and聽
you will see efc on another side so the higher聽聽
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the cost of attendance of course the more that the聽
student will need now then your student gets their聽聽
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efc their number from fafsa and now one quick fact聽
with this is that if you have multiple children in聽聽
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college that number is divided by them so say your聽
expected family contribution comes back at 30 000聽聽
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and you have two students in school at the same聽
time in college at the same time your efc your聽聽
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expected family contribution would actually be 15聽
000 per child this is something that's supposed聽聽
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to be changing with that simplification but we're聽
going to keep you all updated with those changes聽聽
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as they come now when you take cost of attendance聽
and subtract your expected family contribution聽聽
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then you are left with a gap and that gap聽
is considered your student's financial need聽聽
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this is important for when i tell you how you聽
can try to maximize money the other thing i want聽聽
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to mention with this is even if your student is聽
told that they don't get a pell grant they don't聽聽
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qualify for this money your student is eligible to聽
appeal now comment below if you would love a video聽聽
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on how to appeal to the school for more funding聽
for your students education let me know in the聽聽
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comments you can just say something like appeal聽
video please and if i get enough comments below聽聽
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on that i'll go ahead and create that soon okay聽
so lastly let's talk about how can we get more聽聽
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financial support based on this submission now聽
the first thing is of course minimizing the efc聽聽
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as you can see that number really determines a lot聽
of things when it comes to the pell grant and so聽聽
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we want to try to bring that down to as little as聽
possible so one of the things is minimizing our聽聽
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income level now when we're looking at our income聽
level one of the ways to do that is actually to聽聽
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contribute to retirement accounts so they take out聽
the money that you're moving into retirement so聽聽
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of course you don't want to do this with money聽
that you need you don't want to have to pull it聽聽
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back out of the retirement accounts and pay all聽
the penalties but if you have the flexibility聽聽
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to max out those accounts or to increase your聽
contributions that can bring down the amount聽聽
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that's used in calculating the efc a second one is聽
to get the assets out of your student's name any聽聽
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assets in your student's name are going to count聽
at a greater percentage towards that expected聽聽
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family contribution number than any assets that聽
are in the parents names so this is a very quick聽聽
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way that you can reduce that efc third you want to聽
make sure that you are submitting fafsa correctly聽聽
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so if you are submitting it incorrectly maybe聽
you're including numbers that you don't need to聽聽
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include like retirement numbers that shouldn't聽
be factored into your assets or maybe i've seen聽聽
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divorced families where they thought that they聽
had to put both households income levels on there聽聽
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that's not true so you want to make sure that聽
you're submitting fafsa correctly because聽聽
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if not it can actually cost you a lot of money聽
if you're accidentally increasing your afc when聽聽
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you don't have to be now we have tons of different聽
strategies inside our debt-free degree lab monthly聽聽
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program every single month we're talking about聽
strategies like this how to minimize your income聽聽
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how to change how to maximize tax credits how to聽
minimize efc all these things and so if you're聽聽
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interested in that you can learn more at the link聽
below just look for debt free degree lab and click聽聽
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that link and you can learn about it so just a聽
quick recap the pell grant is a federal grant聽聽
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that does not have to be paid back it is based on聽
financial need however there are some things that聽聽
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you can do in order to increase your chances of聽
getting there and your student must be a citizen聽聽
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or a qualified citizen in order to be eligible聽
as well as an undergraduate student now don't聽聽
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forget to comment below i ask you for two things聽
first is do you plan to submit fafsa in order聽聽
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to apply for the pell grant and second do you聽
want that appeal video if so write appeal video聽聽
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please and lastly do not forget to subscribe聽
because again every single week you're getting聽聽
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a free strategy on here on how to work towards a聽
debt-free degree i'll see you in the next video
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