For students from low-income families, the pursuit of funds to finance a quality college education can be overwhelming. However, grants serve as a valuable resource, alleviating the financial burden and enabling students to afford an education they once deemed unattainable.
Grants and scholarships are often mentioned together due to their similarities, but grants have unique attributes that make them a potentially better option for certain students. Unlike loans, both grants and scholarships do not require repayment. Scholarships are typically awarded based on merit or outstanding accomplishments, while grants are commonly awarded based on financial need.
Don’t require repayment
Don’t require excellent grades or athletic ability
Don’t require repayment
Source: https://studentaid.ed.gov/sa/about/data-center/student/application-volume/fafsa-school-state
When grants are solely need-based, accurately assessing a family's financial well-being becomes crucial, and it's equally important for schools to use consistent metrics when comparing the needs of multiple students. The Free Application for Federal Student Aid (FAFSA) serves this purpose by standardizing the process, requiring students to complete it annually. Unsurprisingly, officials receive hundreds of thousands of FAFSA forms each year.
Completing the FAFSA extends beyond federal aid applications as it also impacts eligibility for various funds, including those offered by the private sector. However, it's worth noting that federal sources often provide the largest grants.
Undergraduate students who exhibit financial need and lack a bachelor's or professional degree can receive Federal Pell Grants. While the assistance from a Pell Grant can be crucial, the American Association of State Colleges and Universities reveals a decline in the percentage of tuition covered over time, now amounting to only 36% of the cost. By comparison, in 1976, these grants covered almost 72% of the cost.
Pell Grants offer remarkable portability, enabling students to utilize them at nearly any educational institution that accepts federal financial aid. The National Center for Education Statistics identifies over 6,000 schools falling under this category.
In institutions like these, there are additional federal programs that may be applicable, and these grants can be appealing to individuals who may or may not meet the eligibility criteria for a Pell Grant.
Nonetheless, the Pell Grant program has the capacity to assist 9.7 million students, offering tangible support totaling $33.4 billion.
The Federal Supplemental Educational Opportunity Grant is specifically intended for undergraduate students who can exhibit an exceptionally high level of financial need as determined by officials. The funding amount provided can range significantly, varying from $100 to $4,000, depending on the extent of need demonstrated by the student, as outlined by the U.S. Department of Education.
The Teacher Education Assistance for College and Higher Education (TEACH) Grant serves as a resource for low-income students aspiring to become teachers, with the condition that they enroll in specific courses and commit to working in high-need fields after graduation.Completing the list of federal grants, the Iraq and Afghanistan Service Grant is exclusively tailored to aid students who have experienced the loss of a parent due to military action in Iraq or Afghanistan. Statistics indicate a substantial number of students who could potentially benefit from this grant.
While federal grants offer numerous opportunities, they are not the sole means of financial assistance for students in need. State grants also play a significant role, such as Virginia's undergraduate grants of up to $3,100 and graduate grants of up to $1,500, or Texas' grants ranging from $2,400 to $7,400.
Graduate Students: $1,500
Source: http://www.schev.edu/
Community College Students: $2,400
Technical College Students: $4,400
Additionally, there are grants that take into account specific aspects of a student's life, such as their:
These grants can be equally advantageous to those provided by the federal government. One such example is the Patsy Takemoto Mink Education Foundation, which offers education grants of up to $3,000 to low-income women with children.
The notion of receiving a fixed sum of money without any repayment obligations may seem too good to be true, leading to the circulation of various myths about grants and their functioning in the online realm. However, these misconceptions can deter students from seeking the financial assistance they require, emphasizing the importance of debunking such myths.
For instance, there is a misconception among some students that grants diminish in value every year, leading them to forgo applying. However, this belief has been debunked by the National Association of College and University Business Offices, as reported by Inside Higher Ed.
These figures represent "unprecedented numbers," according to experts, resulting from the price-consciousness of students and their parents. As families become increasingly skilled at evaluating their options, they may begin to prioritize grants as a determining factor in selecting one educational institution over another. In response, colleges and universities appear to be responsive to this demand.
Some students incorrectly assume that their changing circumstances do not warrant another trip to the financial aid office, potentially causing them to miss out on additional funding opportunities for their education.
When faced with severe financial hardships like the ones outlined by the U.S. Department of Education, students are advised to reach out to their financial aid office promptly. These difficulties may include:
When a student's financial situation undergoes significant changes, it is essential to contact the financial aid office to explore all possible sources of funding, including the Pell Grant, which is awarded to eligible students.
At tuitionoptions.ME, our objective is to assist college students in finding private loans with competitive interest rates. With over 20 years of experience, we are the leading loan comparison tool.