Federal School Grants

The prospect of paying for college can be intimidating whether you are paying for your child’s schooling or wish to advance your own education. But with a little time and effort, finding and applying for the right Federal grants will prove worthwhile in financing your degree. Federal grants do not have to be repaid after graduation (unlike loans) and can be utilized with more versatility than many loans, such as for education-related child care, supplies, and transportation to and from classes.

There are presently five types of Federal grants available for education:

1. The Pell Grant

Primarily for undergraduate students who are working on a bachelor’s or professional degree, Pell Grants are awarded up to a maximum annual amount ($5350 for 2009-2010 school year) and based upon the student’s situation, financial need, costs for attending school, whether they are a full or part time student, and other factors. Although it is generally for undergraduates only, the Pell Grant does have some exceptions for students of post-baccalaureate teacher certification programs.

Pell Grant funds are paid by the school to the student by check, through application of monies directly to the student’s education, or both. Your school will notify you of your award amount and payment method. Disbursement will occur at least twice per year according to your school’s educational calendar.

2. Federal Supplemental Educational Opportunity Grant (FSEOG)

Undergraduates in situations of exceptional financial need are provided with FSEOG grants ranging from $100 to about $4000 per year. The award amount depends upon when the student applies, their situation, funding opportunities at their school, and their school’s financial aid policies. First consideration for the FSEOG goes to Pell Grant recipients with the lowest EFC (expected family contribution). Like the Pell Grant, funds are either applied by the school directly to the student’s account, will be paid to the student by check, or both. Those payments are also made on the same type of schedule as the Pell Grant.

3. Academic Competitiveness Grant (ACG)

The ACG is new to the world of Federal grants, having been implemented in 2006 for incoming collegiate freshmen graduating from high school after January 1, 2006 or college sophomores who graduated from high school after January 2005. The amount of the ACG is $750 for the first year of college and $1300 for the second year. A major restriction is that – when combined with the Pell Grant – the total amount of award cannot exceed the student’s cost of education for that year. There may also be award amount restrictions if the funds are tapped out due to the number of qualified applicants each year.

4. The National Science & Mathematics Access to Retain Talent Grant (National SMART Grant)

Available to third- and fourth-year Pell Grant recipients (or fifth year students of a five year program), the SMART Grant is for students majoring in physical, computer, or life sciences, mathematics, engineering, technology, or a critical foreign language; or non-major single liberal arts programs. The SMART Grant provides up to $4000 for each of the junior and senior years. Students must maintain at least a 3.0 GPA and meet other basic requirements of the grant prior to receiving the funding.

5. TEACH Grant Program

The TEACH Grant Program is the newest of Federal education grants. Created under the College Cost Reduction and Access Act of 2007, this grant is designed to provide up to $4000 per year to students who intend to teach in elementary or secondary schools serving students of low-income families. Students interested in applying for a TEACH Grant should consult with their school’s financial aid office to ensure all of the grant conditions are met, including the obligation to teach for at least four years in an approved school system. If that obligation is not met, the you must repay the full amount of the TEACH Grant as a Stafford Loan.