Student Grants

Determining how you are going to afford the high cost associated with higher education can be a daunting task for any individual. Public and private tuition rates are rising causing many students to take on monumental debts to obtain higher education. In many cases graduates are still paying off their college loans well into their forties. However do not let this dissuade you from pursing higher education because you feel you cannot afford it. Student grants are available to aspiring individuals looking to further their education. Instead spend your time researching which financial aid and or college grants you qualify for. Student grants can help to substantially reduce or potentially eliminate any educational debt.

One possible solution available is Federal grants, which are a type of financial aid. Federal grants exist to allow an individual to cover the cost of attending higher education without being required to repay the money upon graduation. Federal grants are awarded based on the financial need of the student and the Expected Family Contribution (EFC) is used to calculate that amount. The Expected Family Contribution (EFC) is how much money your family is expected to contribute to your college education for one year. Typically, the lower you’re EFC, the more financial aid you will receive. Factors such as family size, number of family members in college, family savings, and current income are used to calculate this figure.  The information used to calculate your EFC is supplied on the Free Application for Federal Student Aid (FAFSA) form. Federal grants are usually deposited directly into your school’s student account. However, Federal grant money can also be paid to you via check or deposited into your bank account. Once your FAFSA is processed, you will receive a Student Aid Report (SAR) with your official EFC figure. Schools listed on your FAFSA will also receive this information which the financial aid office will use to determine your financial need. Your EFC may vary from one institution to another and is generally calculated using either the Federal EFC Methodology or the Institutional EFC Methodology. Financial need is calculated via: The Cost of Attendance (COA) minus the Expected Family Contribution which equals your financial need.

Two types of federal student grants are available: the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG).

The Pell Grant is an educational federal grant program sponsored by the U.S. Department of Education. The grant is named after U.S. Senator Claiborne Pell and was originally known as the Basic Educational Opportunity Grant program. Pell grants do not require repayment and as previously mentioned are awarded based on a “financial need” formula determined by Congress. To qualify for a Pell Grant, a student must demonstrate financial need – this can be a liberal interpretation. A student is eligible for financial assistance if she/he maintains satisfactory academic progress which is determined by each university. Please note: In the 2005-06 students with family incomes of less than $20,000 accounted for 57% of Pell Grant recipients. Additionally, students cannot not receive Federal Pell Grant funds from more than one school at a time.

The Federal Supplemental Educational Opportunity Grant (FSEOG) was designed to help students with significant financial constraints. The (FSEOG) is available to undergraduates or vocational students both part-time and full-time. Priority is given to students already receiving a Pell Grant. Students can receive the grant at any one of approximately 4,000 participating educational institutions. To qualify for the FSEOG will need to file a FAFSA. A student is eligible for financial assistance if she/he maintains satisfactory academic progress which is determined by each university. Generally a student will receive between $200 and $4,000 a year, depending on when you apply, the level of need, and the institutions funding level. Students can apply for a Federal Supplemental Education Opportunity Grant at their school’s financial aid office. Generally students receive the results of their application within two to four weeks.

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