How Are a Pell Grant & SEOG Paid Back?

Federal Pell Grants

Before being renamed in honor of the late Rhode Island Senator Claiborne Pell, this federal program for undergraduates was called the Basic Education Opportunity Grant. For the 2010 to 2011 academic year, the maximum Pell grant was $5,550. Individual award amounts depend on the tuition amount, the institution of higher learning, part- or full-time student status and attendance for an entire or partial academic year. Approximately 5,400 post-secondary educational institutions, both public and private, accept Pell grants.

Undergraduate students with very low family or independent incomes may qualify for the FSEOG. For the 2010 to 2011 academic year, awards ranged from $100 to $4,000 with an average award of $736. Approximately 1.3 million students have received funding under the program. Like Pell grants, awarded amounts depend on individual school tuition costs along with student financial need.

Submission of the FAFSA is the first step in determining eligibility for Pell grants and FSEOGs. The FAFSA formula establishes the student's financial aid need according to the family's Expected Family Contribution (EFC). The formula takes into consideration student and family income, household size, assets and the number of family members enrolled in institutions of higher education. After evaluation, applicants and the schools in which they enroll receive the Student Aid Report (SAR), which delineates eligibility for Pell grant based on EFC.

Students receiving Pell grants or FSEOGs may also be eligible for other grants, depending on the field of study and grade point averages. The Academic Competitiveness Grant (ACT) provides $750 for freshmen and $1,300 for sophomores who have completed a "recognized rigorous secondary school programs of study." For juniors and seniors majoring in math, science, foreign languages, technology and certain other designated fields, the National Science and Mathematics Access to Retain Talent (SMART) Grant provides as much as $4,000 per year.