College costs continue to rise at a rate that exceeds the rate of inflation and families are looking for any and all sources of financial aid to help them manage the costs. One of the more popular sources of financial aid is the federal Pell Grant.A Pell Grant is a federal needs-based award that all college students are eligible to apply. It’s based on the applicant’s financial situation and not academic achievement so anyone who is in need of some assistance in paying tuition bills can potentially be a Pell Grant recipient. Better yet, a Pell Grant is not a loan. It’s a cash award that does not need to be repaid.In order to apply for a Pell Grant, you’ll need to obtain a Free Application for Federal Student Aid (FAFSA) form. You can find this form at your high school guidance counselor’s office, your federal financial aid office or online at www.fafsa.ed.gov.When filling out the application it will be helpful to have all of your financial information available. Income, savings statements and tax returns will all be needed in order to complete your application.When applying, keep in mind that there is an annual deadline for applying for a Pell Grant. The filing deadline is in the spring of every year for the upcoming school year but Pell Grants are handed out on a first come, first served basis. Even though you beat the filing deadline, all Pell Grant money may have already been distributed so it pays off to apply as early as possible.Shortly after your application is submitted, you’ll receive a Student Aid Report. This report will detail if you’ve been awarded a Pell Grant. Grants can be for any amount up to $3,000. The Student Aid Report will give you all the details you’ll need in order to claim your grant should be awarded one.The government’s federal student aid website – www.fafsa.ed.gov – is a great place to start to learn more.