What type of federal funding is free money, but is based on financial need only?
Never having gone to college or for further education, but wondering how you would be able to pay? But what if I told you there’s a way to get “free money” for it? It’s not a loan, so you are not required to pay it back. These are federal funds that are awarded to students based on financial need, which means the awarded are those who can prove that they cannot afford the total cost of education. Doesn’t that sound like a dream come true?
Understanding Federal Grants
Federal Grants are one of the best education funding help. The best part? They are called free money because they don’t have to be paid back. You don’t have to pay them back when you complete your studies. What’s key to know is that federal grants are intended only for students who demonstrate financial need. This is done via the Free Application for Federal Student Aid, or FAFSA. How much money you can receive is based on your family’s income, assets and other resources.
For students who require help footing the bill for their higher education, federal grants can be a boon. These grants are the secret to pursuing your educational goals without incurring debt. Allow me to walk you through some of the most widely available federal grants that are based purely on financial need.
Federal Grants by Financial Need
The Pell Grant is among the largest and most familiar federal grants. I’ll tell you, I was lucky enough to have access to this grant when my time in school came up, and it was in large part how I was able to afford tuition. The Pell Grant is granted to undergraduate students with exceptional financial need. The dollar amount available for a student varies from year to year, depending on a simple formula based on their financial situation and the cost of their selected school.
For the 2023-2024 academic year, the maximum Pell Grant is $7,395. But you’ll get an amount based on your Expected Family Contribution, or EFC, which is derived from your family financial data. If you have low family income, you may get the full amount. Otherwise, you will get a prorated award.
How the Pell Grant helped me: When I was applying for FAFSA, I didn’t know the amount I would get. But once I received the Pell Grant, I felt relief. It paid for a sizeable portion of my tuition, which allowed me to focus more on academics, rather than stressing out about costs.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Another key need-based federal grant is the Federal Supplemental Educational Opportunity Grant (FSEOG). This is a very low income grant that is intended for undergraduate students with greater financial need than is required for the Pell Grant. Luckily, I was awarded this grant, and let me tell you, it really helped keep my education affordable.
Your school’s financial aid office usually administers the FSEOG. The amount you can receive ranges from a minimum of $100 up to $4,000 a year, based on your school’s funding and your individual need. The FSEOG is one of the lowest need-based forms of aid, so the earlier you apply, the better your chances of securing this money.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
The TEACH Grant might be an option for you if you’re planning to become a teacher, especially in a high-need field or in low-income schools. The TEACH Grant awards up to $4,000 a year to students willing to teach in particular subjects, including math and science, as well as special education, in schools with high numbers of low-income students.
This grant is known as “free money,” but there’s a catch: You have to commit to working in an eligible job for a certain number of years after you graduate. (If you don’t meet the requirements, the grant converts to a loan that must be repaid with interest.) But if you want to be a teacher and make a difference in the lives of kids who need it, this is an amazing opportunity.
Iraq and Afghanistan Service Grant
The Iraq and Afghanistan Service Grant was established for students whose parents or guardians died in Iraq or Afghanistan in connection with military service after the events of 9/11. And this grant is for those not eligible for a Pell Grant, but still in need of help paying for school.
The yearly amount of the Iraq and Afghanistan Service Grant is equal to the maximum Pell Grant for the award year. But unlike Pell Grant eligibility, it’s based on the death of a parent or guardian in military service rather than financial need.
This grant is a testament to those who made the ultimate sacrifice for our country, and should bring financial support to the children of fallen heroes.
State Grants and Other Federal Programs
In addition to the aforementioned federal grants, some states offer grants to students with financial need. They’re provided through the FAFSA and the amount can vary. And a few states even provide extra federal funding programs to help disadvantaged students.
For example, the Federal Work-Study Program assists students with finding part-time work either on or off campus to help cover educational costs. Although this isn’t a direct grant, the money you receive from work-study generally goes toward paying for school expenses.
How to Apply for Federal Grants Federal Grant Application Process
- If you’re interested in applying for any federal grant, the first step is to fill out the FAFSA (Free Application for Federal Student Aid). The FAFSA opens the door to free money for your education. Let’s briefly run through the process:
- Complete the FAFSA: To begin the process, you’ll need to go to the FAFSA website and create an account. Enter all the required information about your family’s financial circumstances.
- File Your FAFSA ASAP: Schools sometimes have deadlines; the sooner you file, the better your chances of getting aid. So get in the door as soon as you can to get the most you can receive.
Be Honest The Fafsa requests your family’s income and other financial information. Just have to ensure you enter the correct info so there are no issues.
Federal Grants:
Looking back, I don’t feel bad about relying on federal grants for school. The stress of tuition costs alone can be overwhelming, but knowing I qualified for Pell and FSEOG grants took such a huge weight off my shoulders. “All this ‘free money’ meant I could focus on my studies and the depth of my courses. Otherwise I might have had to take out loans, and I’m so grateful I didn’t have to do that.”
Here’s one thing I learned from going through the whole process: Knowing your financial need and applying early matter. There is a lot of money available, but you need to get your FAFSA in on time to take advantage. I made very sure to apply on time every year, and it paid off.”
Maximizing Your Financial Aid
Now that you’ve familiarized yourself with the different types of federal grants, it’s time to look into how to best leverage your financial aid package:
- Apply Early: Don’t leave it to the last minute. The earlier you apply, the more financial aid potentially available to you. This money is limited, so apply early!
- Look Out for Deadlines: Continue progressing your studies and meeting any timelines in place. Neglecting to do so may cost you your grant.
- Seek Other Scholarships: There are federal grants available, but don’t stop there. Many private organizations have scholarships available, which can help you fund extra expenses. Seek out ones that are relevant to your interests, goals, or area of study.
- Go Over Your Award Letter: Once you have your package, study it closely. Get all of the awards correct, and ask questions if something seems off.”
- Be Smart in Your Spending: After you see your financial aid money you will create a budget that will pay for your tuition and books, bills and everything else you may need. Keeping on top of your finances will help you make the grant money last until the end of the semester.
Conclusion
The upside, however, is that federal grants can reduce the cost of your education — and you do not have to pay them back. These funds, which are awarded based on financial need, can be a golden opportunity for those who qualify. You can receive financial help to pursue your dreams a through programs such as Pell Grant, FSEOG and TEACH Grant.
When You Apply Early And Keep Your Eligibility, You Open The Door To A Bright Future Without Student Loan Debt Believe me, these grants changed my college experience and they will help you too!
If you’re still unclear on where to begin, I suggest getting your FAFSA done right away. The earlier you start, the better your chances of nabbing that coveted, free money. Good luck, and go earn your degrees!