Benefits of Need-Based Grants

Qualify in More Ways Than One

Financial aid is an essential part of the whole college experience for most students. Not many people can afford to pay for college right out of pocket.

Traditional forms of financial aid include: federal, state and private student loans – or those you pay back; and federal, state or private scholarships and grants – or those you do not have to pay back, often called gift aid.

What Is a Need-Based Grant?

Need-based grants are often awarded to students who may not be able to attend college without it. Eligibility is based on an array of measurements, including family’s expected contribution, number of dependent family members, your student status, and any continuing academic requirements. Sometimes your family income is a key in the formula for determining ability to pay and sometimes it is not.

Most need-based grants are funded by the federal government; some by state governments. Common federal grant programs include the Federal Pell Grant, the Federal Supplemental Education Opportunity Grant (FSEOG) and the Federal Work Study program.

Do You Qualify for a Need-Based Grant?

Whether or not you qualify for a need based grant does not necessarily hinge on your current family income, so don’t rely on this to self-qualify yourself for aid. In fact plenty of college students have a significant family income, yet qualify for federal grant aid based on other factors.

Factors that may determine your eligibility for “need-based” grant money:

  • Number of dependent family members
  • Number of dependent family members attending college or a postsecondary education
  • Expected family contribution
  • Family assets beyond income
  • Your student status

Remember, family income is only a component in the formula.

Applying for a College Need-Based Grant

The Free Application for Federal Student Aid, the FAFSA, is the one financial aid document you must not miss filing. Complete the FAFSA and you are automatically considered for federal student loans as well as the federal grant programs. The key is to complete the form fully and file it no later than the deadline. There are a number of FAFSA deadlines you must pay attention to: the federal deadline, your state deadline and your school deadline. File the FAFSA by the first of these deadlines in order to qualify.

A few weeks after you submit the FAFSA, you should receive your Student Aid Report or SAR in the mail. This document tells you how much money you and your family are expected to contribute to your college tuition, officially known as the Expected Family Contribution (EFC) as well as what types of federal aid you qualify for. SARs also go to the schools you’ve chosen that you include on the FAFSA. Based on the information contained in the SAR, each school you’ve expressed an interest in will prepare an award letter, a financial aid package they are willing to extend you in return for gaining you as a student.

Remember, if you don’t apply for financial aid, via the FAFSA, you miss out on potential college money you don’t have to repay.