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Generally speaking there are two types of school grants, federal and state, but within those two categories are numerous grant opportunities. When you are trying to find sources of money to pay for an education, grants are considered the most desirable type of financial aid because they don’t have to be paid back. The money is “granted” and no repayment is expected as opposed to loans.
The two main types of federal government grants for school are the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). Other major grant programs in addition to these include the National SMART Grant and the Academic Competitiveness Grant. There are even more grants available at Grants.gov. In addition, there are state based grants that you can apply for directly or that may be awarded through the college financial aid office.
Federal Pell Grant Seen in Most Financial Aid Packages
The federal Pell Grant is the largest financial aid program and is usually found in the financial aid package of qualifying undergraduate students. You must first submit the Free Application for Federal Student Aid (FAFSA) to the financial aid office to determine if you meet the income and other eligibility requirements. The Expected Family Contribution (EFC) is the income calculation use to determine income eligibility.
The current maximum Pell grant for 2010-11 is $5,550 but that amount may be reduced if you have savings or access to other financial resources for educational expenses. Other factors impacting whether you get a full or partial Pell grant include the number of credits you are taking and the cost of your schooling. A student must be enrolled in a degree program though there are some exceptions made for graduate teacher certification programs.
Every dollar of Pell grant you get is a dollar you will not have to borrow in the form of a student loan. Usually the financial aid package begins with the Pell grant and then other types of federal and state sources, including work study, are added. The Pell Grants are awarded to first time higher education students, but they are also grants for going back to school.
Federal Supplemental Educational Opportunity Grants (FSEOG)
The Federal Supplemental Educational Opportunity Grant is a need based grant. It is awarded to low income students who still cannot afford college even with a financial aid package that includes the Pell grant, loans, work study, scholarships or and other sources. The grant is awarded through the financial aid office using a pre-defined formula.
National Science & Mathematics Access to Retain Talent Grant (National SMART Grant)
The National SMART grant is given to students in their third or fourth year undergraduate program, and is another federal grant program. The student must be half to full time and majoring in physical life, mathematics, engineering, computer sciences, technology, a critical foreign language, or a non-major single liberal arts program. Eligibility for this grant also means you are eligible for a Pell Grant. The grant amount added to the Pell Grant cannot be more than the cost of attending the college or university.
Academic Competitiveness Grant (ACG)
The federal Academic Competitiveness Grant (ACG) is awarded to first or second year students enrolled in rigorous secondary educational programs. Once again, the ACG grant added to the Pell Grant cannot exceed the cost of attending the higher education institution. Eligible students must complete certain identified secondary honors and advanced classes and maintain a pre-defined minimum grade point average.
State Grants
State based college grants are offered in all 50 states. The grants can be accessed through direct application to the awarding foundation or agency, or through the higher education financial office. State grant programs are funded by the state legislatures such as the Texas state program named Towards Excellence, Access and Success and the Georgia HOPE Grant Program which is funded by the state lottery.
The types of grants vary and may be based on:
- Financial need
- Particular course of study such as health care or special education
- Minority status
There are many grants for school available and you should not just consider the most obvious. The state grants especially are often underutilized simply because people don’t know they exist. There are grants for graduating high school students and grants to go back to school after an absence. In other words, it’s a great time to get an education!
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