Federal Grants

Federal Grants: What They Are and How They Work
Information summarized from Federal Student Aid, U.S. Department of Education — studentaid.gov.

The U.S. Department of Education offers several types of federal grants to help students pay for college or career school. Grants are a form of financial aid that usually do not need to be repaid, unlike student loans.

However, there are certain situations where a student may be required to repay some or all of their grant—for example, if they withdraw from classes early or, in the case of a TEACH Grant, if they do not complete the required teaching service.



Types of Federal Grants

The federal government provides different grant programs for eligible students attending universities, community colleges, and career or technical schools. Below is a summary of the main grant programs:



Federal Pell Grant

For undergraduate students with significant financial need

Student must not already have a bachelor’s, graduate, or professional degree

Maximum award for 2024–2025: up to $7,395



Federal Supplemental Educational Opportunity Grant (FSEOG)

For undergraduates with exceptional financial need

Must not have earned a bachelor’s, graduate, or professional degree

Maximum award: up to $1,000 per year



TEACH Grant (Teacher Education Assistance for College and Higher Education)

For undergraduate, post-baccalaureate, and graduate students preparing to teach in a high-need field at the elementary or secondary level

Award amount: up to $4,000 for grants first disbursed from Oct. 1, 2022–Sept. 30, 2024

Important: If service requirements are not completed, the grant converts into a Direct Unsubsidized Loan, which must be repaid with interest.




Grant Eligibility

To be considered for any federal grant, students must submit the FAFSA® each year.
After you submit your FAFSA, your school will review your information and tell you:

Which grants you qualify for

The amount you may receive

When your grant will be disbursed

Some grants also have additional requirements. More details can be found on each specific grant’s page at studentaid.gov.



Keeping Your Grant Eligibility

Each grant has its own rules for maintaining eligibility. In general, students must:

Continue meeting financial-need or program requirements

Maintain satisfactory academic progress

Stay enrolled in eligible coursework

For exact rules, students should review the requirements for their specific grant program.




When a Grant May Need to Be Repaid

A federal grant may need to be partially or fully repaid if:

You withdraw from school before completing the term

Your enrollment drops (e.g., from full-time to part-time) and your grant amount changes

You receive outside scholarships or aid that reduce your federal aid eligibility

You received a TEACH Grant but did not complete the required teaching service

You received Pell Grant funds from more than one school at the same time





Grant Repayment Process

If you must repay a grant, your school will notify you. You will have 45 days to:

Repay the amount in full or

Set up an approved repayment plan

If you choose a repayment plan, your school may either collect payments directly or send the debt to the U.S. Department of Education for collection.

If you do not take action within the required timeframe, you will lose eligibility for future federal student aid until the debt is resolved.

Source: Reworded and summarized from Federal Student Aid (U.S. Department of Education), available at studentaid.gov.