The Pell Grant program is a nationwide higher education assistance program administered by the Department of Education. Needy Georgia students are eligible for the program, but it has no particular affiliation with the state of Georgia. The Pell Grant program is need based. Wealthier students will have a difficult time qualifying for the grant. Other programs are available that specifically benefit Georgia students.
Expected Family Contribution
The expected family contribution (EFC) is the amount the government expects the student and his or her family to pay towards the student's education. The government looks both at total family assets, student assets and family and student income. The higher the income or the greater the amount of assets, the higher the EFC.
Pell Grant Eligibility
Because the Pell Grant program is need based, the government allocates aid based on the difference between the cost of attending the college or university and the student's expected family contribution. The government uses information the student and the student's family provide on the Free Application for Federal Student Aid (FAFSA).
Exempt Assets
To maximize the student's eligibility for financial aid, you may wish to take advantage of certain college planning techniques. For example, don't title the student in his own name because students are expected to contribute a greater fraction of their net worth than family members. You can title assets in grandparents' names, and they don't count at all. Neither do certain kinds of assets, such as retirement accounts, home equity, annuities and the cash value in life insurance policies.
Other Scholarship and Grant Programs for Georgia Students
Georgia also sponsors a number of other grant and scholarship programs designed to encourage Georgia residents to attend school within the state. Examples include the Georgia Hope Grant Program and the Georgia Governors' Scholarship.
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