Student Aid Grants
Federal Student Aid Grants, unlike a student loan, do not have to be repaid. There are 5 federally regulated student aid grants available to students of varying educational pursuits.
The Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)
The College Cost Reduction and Access Act of 2007 created the TEACH grant program that provides student aid of up to $4,000 per year to students who intend to teach to public or private elementary or secondary school that serves students from low-income families. Generally, you should contact the financial aid office at the college where you will be enrolled.
Conditions for student aid:
In order to receive a TEACH grant, you must agree to serve as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students.
1. These fields include: Bilingual education and English language acquisition, Foreign language, mathematics, reading specialist, science, special education, other shortage areas at the time you begin teaching.
2. Schools serving low income students includes any elementary or secondary school that is listed in the Department of Education’s Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.
3. TEACH Grant Agreement to Serve – Each year you receive student aid in the form of a TEACH Grant, you must sign the agreement that is available electronically on the Teach Grant Agreement to Serve website. This agreement requires the following:
- For each TEACH Grant-eligible program for which you received student aid, you must serve as a full-time teacher for a total of at least four academic years within eight calendar years after you completed or withdrew from the academic program for which you received student aid.
- You must perform the teaching service as a highly-qualified teacher at a low-income school.
- You must comply with any other requirements that the Doe deems necessary
- If you do not complete the required obligations, your TEACH Grant will be treated as a student loan, such as a Federal Unsubsidized Stafford Loan, and you will have to repay the full amount in addition to any interest accrued since disbursement.
Federal Pell Grant
Pell Grants are usually awarded to undergraduate students who have not earned a bachelor’s or a professional degree. Unlike a student loan, a Pell Grant does not need to be repaid.
The maximum student aid award for the 2009-10 year is $5,350. The amount of student aid you get will be determined by analyzing your financial need, the costs associated with attending a chosen school, your status as a full or part time student, and your plans to attend school for a full academic year or less.
Your school can apply Pell Grant funds to your outstanding student loan balance, provide direct student aid by check, or a combination of these methods.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The FSEOG program is a form of student aid for undergraduates with exceptional financial need. Unlike a federal student loan, the FSEOG does not have to be repaid.
You can receive anywhere from $100 to $4000 a year, depending on when you apply, your financial need, the school you’re attending, and the policies of the financial aid office at your school.
If you’re eligible your school will credit your outstanding student loan balance or pay you directly.
The Academic Competitiveness Grant (ACG)
The ACG provides $750 for the first year of study and $1,300 for the second year. (However, the combination of the ACG and the Pell Grant may not exceed the student’s cost of attending school.) This does not have to repaid and can be put towards any outstanding student loan balance.
If the number of eligible students is large enough that full grant payments would exceed the program’s allotment for the year, the reward amount may be reduced.
The National Science & Mathematics Access to Retain Talent Grant (National SMART Grant)
A National SMART Grant will provide up to $4000 for each of the third and fourth years of undergraduate study in a qualifying field. The SMART Grant can be applied towards an outstanding student loan, but the total reward in combination with the federal Pell Grant must not exceed the cost of attendance.
It is available to students majoring in physical, life, or computer sciences, mathematics, technology, engineering, or a critical foreign language in addition to maintaining a cumulative GPA of 3.0 in course work required by the major.
Institutional Grants
There are other grants available other than those provided by the federal government. Colleges provide institutional grants to subsidize the difference between college costs and the estimated family contribution. Like federal grants, there are generally stipulations attached to institutional grants and unlike a student loan they do not need to be repaid.