Drummond Financial Solutions

(330) 877-2923

Money Read Time: 3 min

Exploring the Federal Student Grant Program

You may have heard of the Free Application for Federal Student Aid, or FAFSA, if you or someone you know has plans to attend a college, career school, or university. Last year, over 60% of high school seniors submitted a FAFSA to the Department of Education to secure financial assistance. But what many prospective and current students may overlook are the various federal grants awarded to students in need each year.1

Granted value

Most federal grants, unlike loans, function as sources of funding. There are some exceptions, though. For example, if a student is awarded a grant, but withdraws from the program in which they’re enrolled, they may be required to pay back all or a portion of that grant.2

Know your grants

The Department of Education offers multiple aid packages as part of the Federal Student Grant Program. The following four are granted most often, and each has different requirements for eligibility. The information below applies to the 2020-2021 academic year:

  • Federal Pell Grants - With a maximum award of $6,345, Pell Grants are reserved for undergraduate students who have exceptional financial need and have not earned a bachelor’s, graduate, or professional degree yet.3
  • Federal Supplemental Educational Opportunity Grants (FSEO) - FSEO Grants award a maximum of $4,000 to those who demonstrate exceptional need and have not yet earned a bachelor’s or graduate degree. FSEO Grants also give priority to Pell Grant recipients over other applicants.4
  • Iraq and Afghanistan Service Grants - These grants award a maximum of $5,829.50, and they’re only for students whose parent or guardian served in a branch of the U.S. Armed Forces and died while serving in Iraq or Afghanistan after the events of 9/11.5
  • Teacher Education Assistance for College and Higher Education (TEACH) Grants - TEACH Grants award a maximum of $3,764, and they’re reserved for students who are enrolled in teaching preparation programs and agree to teach for a minimum of 4 years at the elementary or secondary school level in a high-need field.6

FAFSA Required

No matter who you are or your financial situation, you may want to consider submitting a FAFSA. After all, the grants listed above do require recipients to have an application on file with the Department of Education. And who knows? The potential financial benefit that you could secure may surprise you.

1. Finder.com, 2019
2. StudentAid.gov, 2020
3. StudentAid.gov, 2020
4. StudentAid.gov, 2020
5. StudentAid.gov, 2020
6. StudentAid.gov, 2020

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

The Business Cycle

The Business Cycle

Understanding the economy's cycles can help put current business conditions in better perspective.

The Business Owner’s Quick Start Guide to College Funding

The Business Owner’s Quick Start Guide to College Funding

As a small business owner, you’re used to having to rely on yourself for everything from retirement planning to health insurance. Saving for your children’s college fund is no different. It may seem like a daunting task, yet there are strategies you can use to help fund your children’s education.

Go Back to School with As Little Debt As Possible

Go Back to School with As Little Debt As Possible

Are you feeling ready to expand your career? Or maybe switch careers altogether? After you’ve been in the working world a while, it’s common to want more from your professional life. A lot of people turn to graduate school to get there, but sometimes this plan is accompanied by a four-letter word: debt.

 

Have A Question About This Topic?







Thank you! Oops!

Tax & Estate Strategies for Married LGBTQ+ Couples

Learn how to maximize your tax and estate strategy as a married member of the LGBTQ+ community.

Insurance Needs Assessment: When You're Young and Single

Even if you’re young and single, you should still consider protecting yourself.

Choosing a Business Structure

Entrepreneurs all face the same question, “Which business structure should I adopt?”

View all articles

Comparing Investments

This calculator compares the net gain of a taxable investment versus a tax-favored one.

Estimate Your RMD

Help determine the required minimum distribution from an IRA or other qualified retirement plan.

Roth 401(k) vs. Traditional 401(k)

This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).

View all calculators

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

View all presentations

The Wild West of Data Theft

Learn about cyber liability insurance in this entertaining video.

A Bucket Plan to Go with Your Bucket List

A bucket plan can help you be better prepared for a comfortable retirement.

Should You Ever Retire?

A growing number of Americans are pushing back the age at which they plan to retire. Or deciding not to retire at all.

View all videos