Students Guide to Need-Based Grants
Financing your education can prove difficult, especially if you have a low income or financial restraints. However, you are not alone. Less than ten percent of people have the ability to afford to pay for their education out of their own pocket. In fact, over half of the student population in the United States depend on financial aid and need based grants to assist with the cost of school and college.
Although financial aid involves applying for federal, state and private loans that eventually need to be repaid, it also includes grants that come from sources such as federal and state governments, colleges and universities and private organizations. These DON’T have to be paid back as they are gift-aid to assist students in obtaining an education.
So, what are Need-Based Grants?
Need based grants are programs designed to provide students with free money to attend a technical school, college or university. Their ultimate purpose is to support students who come from low socioeconomic backgrounds who would not be able to enroll into further or higher education institutions without financial help.
Where do Need Based Grants Come From?
Most need based grants are administered by the federal government, however some state governments run need-based grant programs separate from the federal programs. These usually are awarded to resident students attending in-state schools, colleges and universities. The most common federal grant programs include the Pell Grant, FSEOG (Federal Supplemental Education Opportunity Grant) and the Federal Work Study Program.
A number of private and public organizations also oversee need-based grants to specific types of students. For example if you come from a specific ethnic background, need-based minority grants may be accessible from minority organizations that support the education advancement of a particular minority group.
How is Grant Eligibility Assessed?
To determine eligibility for need-based grants, students’ are assessed using several criteria. If you are a dependant, your family income will be in determining your eligibility. However, there many other measurements that may be used to assess your financial need. These may include the number of dependent family members in your household, Expected Family Contribution (EFC), your enrolment status and continuing academic requirements.
Need based grants administered by the federal government, state governments and public education institutions use the FAFSA to determine financial need. Private institutions and organizations could require a separate needs-assessment application or a combination including your FAFSA.
Can you Qualify to Receive a Need Based Grant?
A common misconception many students assume is they won’t qualify for need based grants because of their family income. Well, although family income is a factor, it is only one component used to determine whether you qualify. It is important that you apply no matter what assumptions you have. Plenty of college students qualify for need based grants because of factors that they are not aware about. It is also free to apply and takes less than an hour; see the applying for need-based grants page to learn more.