Final answer:
A student is eligible to receive a Federal Pell Grant for 12 terms, equivalent to six years of part-time study as calculated by the Lifetime Eligibility Used (LEU) limit of 600%.
Step-by-step explanation:
A student is eligible to receive a Federal Pell Grant for 12 terms or the equivalent of six years of part-time study. This timeframe reflects the Lifetime Eligibility Used (LEU), which is calculated based on a percentage of the maximum amount of Pell Grant funding a student can receive each year. For instance, if a student receives a full Pell Grant for a year, that counts as 100% of their LEU for that year. The total limit is 600% over the student's higher education period, equating to the equivalent of six years of Pell Grant eligibility.
This grant program was initiated by President Johnson as part of the Higher Education Act of 1965. Efforts have been made over the years to increase Pell Grant awards to support the higher education of students who need financial assistance, including updates proposed during President Obama's and President Biden's administrations.