What type of federal funding is free money but is based on financial need only?

What type of federal funding is free money but is based on financial need only?

a) Federal grants

b) All federal scholarships

c) The 529 Plan

d) None of these are correct

Answer: a) Federal grants

Federal grants are a kind of monetary assistance provided by the U. S. authorities to low-income students and learners who do not have to repay the amount, and therefore are probably the closest to what may be referred to as ‘free’ money for college. These grants are intended for what can done to enable students from low-income backgrounds to access higher education.

The guide most of you are familiar with is the Pell Grant. This program gives grants to needy low-income undergraduate students. The amount depends on the student’s need, the cost of schooling at his/her selected institution/college and status whether full-time or part-time. For example, while a learner from a family with a $30, 000 annual income would be eligible for a higher Pell Grant than a learner from a family earning $ 60, 000 per year.

Another instance is the Federal Supplemental Educational Opportunity Grant (FSEOG). This grant goes to students with the most financial needs who are always at their undergraduate level. Finally, while the Pell Grant funding is inexhaustible, FSEOG funding is also limited and awarded on a first-come, first-served basis on a per-aid year basis at the option of the institution’s financial aid office.

As aforementioned, one must understand federal grants are awarded on the basis of financial need, but there are other standards. For instance, Satisfactory Academic Progress is a requirement for students to keep on benefiting from these grants. Moreover, such grants might have special requirements, like the field of study or the demographic status of the grant recipient, for instance, the TEACH Grant given to students to become teachers in low-income schools and high-need subjects.

It is equally necessary that students seeking federal grants should fill out the Federal Student Aid which is referred to commonly as FAFSA. This form helps in the evaluation of a student’s financial needs and decides his/her entitlement to federal financial assistance, including grants.