Grants
Another very popular type of Financial Aid is known as grants usually based off of financial need. The widest known financial grant within the United States is the Pell Grant offered by the Department of Education. In addition to Pell Grants and (FSEOG) grants, schools may give out their own private grants.
Federal Grants
Pell Grants
Pell Grants are offered to Students who demonstrate extreme financial need.
General Information
Pell Grants are the foundation of federal student aid, to which aid from other federal and nonfederal sources might be added. Pell Grants are generally awarded only to undergraduate students-those who haven't earned a bachelor's or graduate degree. To be considered for a Pell Grant, parents must fill out the FAFSA.
Schools receive enough funds to pay the Pell Grants for all its eligible students.
Amount Offered
Pell Grant amounts for the 2005-2006 award year (July 1, 2005 to June 30, 2006) will range from $400 to $4,050. The amount a student receives will be dependent on the Expected Family Contribution (EFC), your cost of attendance, whether you are a full time or part time student, and whether you attend school for a full academic year or less.
Receiving Funds
Your school can credit your grant funds to your school account, pay you directly (usually by check), or combine these methods. Also, with your permission, schools can credit your bank account. Schools must disburse at least once per term (semester, trimester, or quarter). Schools that don't use formally defined, traditional terms must disburse funds at least twice per academic year.
Federal Supplemental Educational Opportunity Grants
These grants are given to students with the most extreme financial aid.
General Information
FSEOGs are awarded to undergraduate students with exceptional financial need-those with the lowest Expected Family Contribution (EFC) numbers.
Unlike Pell Grants, the amount of FSEOG funds you receive depends not only on your financial need but also on the amount of other aid you get and the availability of funds at your school.
- Receiving other aid might reduce the amount of your FSEOG award.
- FSEOGs are administered by the financial aid office at each school participating in the program. We provide a certain amount of FSEOG funds each year to those schools. When all funds are used for that award year, no more FSEOG awards can be made for that year. So, make sure you apply for federal student aid early to be considered for these funds.
Amount Offered
Students can earn between $100 and $4,000 a year, depending on when you apply, your financial need, the funding level of the school you are attending, and the policies of your school's financial aid office.
Receiving Funds
Your school can credit your grant funds to your school account, pay you directly (usually by check), or combine these methods. Also, with your permission, schools can credit your bank account. Schools must disburse at least once per term (semester, trimester, or quarter). Schools that don't use formally defined, traditional terms must disburse funds at least twice per academic year.
Other Need Based Grants
Certain schools may choose to offer need based grants to additionally help students. These need based grants are completely up to the discretion of the institution which offers them. Usually, institutions will based the amount off of the EFC amount provided to them from the Department of Ed. The most likely institutions to give out these types of need based grants are private institutions with above average tuition prices.
