Grants

Grants are a form of gift aid – meaning you won't need to pay the money back. They're usually awarded based on financial need and sometimes on merit. Many of the colleges where you’re applying may offer grants, and the federal government has several that you may be eligible for:

What Is a Pell Grant?

Federal Program Offers Another Source of Financing for Students.

One of the numerous potential sources of financial aid for college students is a Federal Pell Grant. This grant is a form of need-based financial aid, and unlike a loan, the money does not have to be repaid. Eligible students receive a specified amount each year under this program.

Eligibility

The U.S. Department of Education uses a standard formula to evaluate the information a student supplies when applying for a Pell Grant. This formula produces an Expected Family Contribution (EFC) number, which will determine if the student is eligible for the grant. Applicants must be undergraduate students who have not earned a bachelor's degree. Each applicant must be a U.S. citizen, or an eligible noncitizen, and needs to have a high school diploma or a GED or to demonstrate the ability to benefit from the program.

Award Amount

The maximum Pell Grant for the 2010–11 award year is $5,550. The amount of the grant depends on both the student's EFC and several other factors. These factors are the student's cost of attendance (tuition and fees, room and board, books, supplies, and so on) and the amount of time the student attends school (whether the student goes to school for a full academic year or less and whether the student is full-time or part-time). An eligible part-time student can receive a Pell Grant. The amount awarded, however, will be less than for a full-time student. An applicant may receive only one Pell Grant in an award year and may not receive Pell Grant funds from more than one school at a time.

Other Grants

• Supplemental Educational Opportunity Grant (SEOG). This grant is awarded to students who are eligible for a Pell Grant who demonstrate the most financial need. You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.
• Academic Competitiveness Grant. To receive this grant, you must be a first-year and second-year student, eligible for a Pell Grant, and graduated from a rigorous high school curriculum.
• National Science and Mathematics Access to Retain Talent Grant (National SMART Grant). To receive this grant, you must be a third-year or fourth-year student, eligible for a Pell Grant, and majoring in physical, life, or computer sciences, mathematics, technology, engineering, or in certain foreign languages. You also must maintain at least a 3.0 GPA in coursework required for your major.