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by CourseAdvisor

Federal grants are government-funded financial aid that awards a sum of money to qualifying students based on a variety of eligibility requirements. Grants, unlike student loans, do not have to be repaid. Grants awarded based on a student's academic performance called merit-based grants and grants awarded based on a student's financial need called need-based grants. The first step in receiving a federal grant is to complete and submit a FAFSA (Free Application for Federal Student Aid) form to your school's financial aid office, being careful to meet your school's deadline.

There are four types of federal grants for students:

• Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Academic Competitiveness Grant (ACG)
• National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)

The different federal grant programs have their own criteria, awards and eligibility requirements. Let’s take a closer look at each one:

Pell Grant

The Pell Grant is a need-based federally funded grant that does not have to be repaid. Pell Grants are most often awarded to undergraduate students who have not already earned a bachelor's degree or professional degree although there are exceptions for some post-baccalaureate teacher certification programs.

For the 2000-2010 year, the maximum amount you can receive from a Pell Grant is $5,350, and for the 2010-2011 year, $5,500. In addition to calculating your financial need, other factors are considered when determining each student's award amount, including your full-time or part-time status, whether you are attending school for the entire academic year or less and your overall costs to attend school.

The Pell Grant application process begins with filing a FAFSA (Free Application for Federal Student Aid). The Student Aid Report you'll receive after successfully filing a FAFSA will tell you if you qualified for a Pell Grant. Pell Grant funds go straight to your school, who will either apply the money directly to your school bill or issue you a check with which you'll be responsible for paying your bill. You must reapply for a Pell Grant each academic year that you're eligible for one.

Federal Supplemental Education Opportunity Grant (FSEOG)

The Federal Supplemental Education Opportunity Grant, also referred to as FSEOG, is a need-based grant that is for Pell Grant recipients with the greatest financial need. In addition to having exceptional financial need, you must be an undergraduate student to qualify for the FSEOG.

Like Pell Grants, FSEOGs do not need to be repaid. Eligible FSEOG students can receive anywhere from $100 to $4000 and this amount is determined by a number of factors including the date you apply, your financial need, the funding your school has and your school's financial aid policies. Your award comes directly from your school and can be issued to you in the form of a check or as a credit to your account or a combination of both.

Academic Competitiveness Grant (ACG)

The Academic Competitiveness Grant, also called the ACG, is a merit-based grant available to first- and second-year students with a cumulative Grade Point Average of 3.0 out of 4.0. Eligibility requirements for the ACG include:

• U.S. citizenship,
• Receiving a Pell Grant for the same academic year,Full-time enrollment in an associate's degree program, bachelor's degree program, or combination undergraduate/graduate program,
• Enrollment in either your first or second academic year of a 2-year or 4-year degree-granting institution, and
• Completion of a rigorous secondary school program of study as defined by the U.S. Department of Education.

First-year students can receive an ACG award up to $750 and second-year students, an ACG award up to $1300. The combined amount of an eligible student's Pell Grant and ACG cannot exceed a student's cost of attendance. (If the number of eligible ACG students exceeds the amount of your school's program funds, students may receive lesser awards.) ACG awards are issued by your school and can be credited to a your school account, paid directly to you by check or a combination of both.

National SMART Grant

The National Science & Mathematics Access to Retain Talent Grant, also called the National SMART grant is a merit-based grant awarded to full-time undergraduate 3rd and 4th year students. In order to qualify for a National SMART grant, students must major in science, math or engineering programs, specifically physical, life or computer sciences, mathematics, technology or engineering or foreign language as long as it is to be used in relation to national security. Also, eligible students must be Pell Grant recipients and maintain a 3.0 GPA. A National SMART grant awards eligible 3rd and 4th year students up to $4000. When combined with the Pell Grant, students cannot receive a total award that exceeds their cost of attendance and students may receive less award amounts depending on the school’s program funds.

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Sources: Funding Education Beyond High School
http://studentaid.ed.gov/PORTALSWebApp/students/english/grants.jsp Research by Carlos Soto, CourseAdvisor Content Editor