Several years ago President Obama announced a plan that would ostensibly provide Pell Grants and other educational assistance to help the unemployed earn a college degree and land a good job. Since then there have been many hucksters who have taken the president's statements and turn them into something that was never intended. While it is possible for unemployed people to apply for, and receive Pell grants, there is no golden goose that will pay for your education entirely and still allow you to collect unemployment benefits while you go to school.
Requirements for Pell Grants
The requirements for Pell Grant applicants are exactly the same regardless of whether you're talking about a 40-year-old unemployed man or an 18-year-old high school graduate. The requirements do not change simply because someone is older and unemployed. Those requirements include:
- a legitimate and verifiable financial need
- a high school diploma, GED, or proven ability to benefit from a college education
- US citizenship; non-citizens who are legally allowed to live and work in the U.S. may also qualify
There are other Pell Grant requirements that may or may not apply in the case of an older, unemployed person.
According to Mr. Obama's original remarks, the unemployed would be able to apply for federal education grants and still maintain their unemployment benefits while going to school. While in principle this may be true, in reality it works out that way for very few individuals. Primarily this is due to the fact that legitimate financial need is often offset by the fact that the unemployed individual is receiving benefits and has other working family members who could help out.
The FAFSA
The Free Application for Federal Student Aid (FAFSA) is the only way to determine whether or not you are eligible for a Pell Grant. The good folks at the unemployment office can tell you whether or not receiving the grant and going to school will make you ineligible for unemployment benefits, but they cannot speak to the FAFSA itself. You will need to complete the application and submit it online just as anyone else would, and then wait for it to be reviewed.
Be aware that the FAFSA is a very detailed application and requires you to submit personal information not only for yourself, but also any other immediate family members with whom you reside. As an unemployed individual, the government will still take into consideration any income your spouse earns as well as any income other relatives living with you earn. For you to be approved it must be demonstrated that you cannot receive the same financial assistance in any other form.
Student Loans
If your family income makes you ineligible for a Pell Grant, you will still be eligible for federal student loans as an unemployed individual. These loans can provide up to 100% of your educational expenses and need not be repaid until after you graduate. Federal student loans are administered through local banks and other lending institutions that specialize in such things. You apply the same way you would for any other type of loan, by filling out the required paperwork and submitting it to the right people.
Even if you are approved for Pell Grants you are probably going to need student loans or some other form of financial assistance anyway. The maximum amount of a Pell Grant in 2010 was just over $5300; an amount that's not going to get you very far in today's educational environment. The point is you're going to need student loans anyway, so you might as well get working on that part of program as soon as possible.