Final answer:
Eligibility for a Pell Grant typically involves demonstrating financial need among other requirements. For the current year, the maximum Pell Grant award would increase to $7,045 as proposed by Biden's Build Back Better plan.
Step-by-step explanation:
Pell Grant Eligibility and Award Amounts
The Pell Grant program is a fundamental component of federal financial aid for higher education, aiming to make college more accessible to low- and middle-income students. Initiated by President Johnson and part of the Higher Education Act of 1965, Pell Grants provide need-based grants to qualifying students. While the question does not provide specific information about "Anna," eligibility for a Pell Grant generally requires demonstrating financial need, being enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program, maintaining satisfactory academic progress in college or career school, and meeting other federal student aid requirements.
In terms of award amounts for the current year, the Pell Grant has seen historical changes. As per President Joe Biden's Build Back Better proposal, the maximum Pell Grant award would see an increase to $7,045 for the years 2022-2025, marking an 8.5% increase, one of the largest 1-year increases in the last two decades. This increase does not only reflect an adjustment to inflation but also an effort to broaden the scope of financial aid in light of the expanding costs of college tuition and fees.
It's important to note that the proposed increase also includes an expansion of the Pell Grant benefits to the participants of the Deferred Action for Childhood Arrivals (DACA) program through 2030. Overall, the Pell Grant award adjustments are geared towards easing the financial strain on students and expanding higher education opportunities.
Grants vs. Loans
The differences between grants and loans are significant for students seeking financial aid. Grants, such as the Pell Grant, are types of financial aid that do not require repayment, allowing students to pay for their educational expenses without the liability of a loan. Loans, on the other hand, are borrowed funds that must be repaid with interest. There are two types of federal student loans, subsidized and unsubsidized. Subsidized loans are based on financial need, and the government pays the interest while the student is in school, during grace periods, and during any deferment periods. Unsubsidized loans are not based on financial need, and interest accrues from the time the loan is disbursed to the borrower.