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.

Federal Pell Grant

Information adapted from Federal Student Aid (studentaid.gov).

 

Eligibility
Federal Pell Grants are generally awarded to undergraduate students who show significant financial need and who have not previously earned a bachelor’s, graduate, or professional degree. In limited situations, students enrolled in certain post-baccalaureate teacher certification programs may also qualify.

Students who are incarcerated or confined may be eligible if they are enrolled in an approved Prison Education Program. Students who are under an involuntary civil commitment after serving a sentence for a sexual offense may also qualify.

Federal Student Aid also warns students not to accept unexpected or suspicious offers of financial aid—such as “pandemic grants” or “Biden loan forgiveness”—without confirming with their school that the offer is legitimate.

Unlike loans, Pell Grants usually do not need to be repaid, unless certain conditions apply (such as withdrawing from classes or receiving more funds than allowed). Students may only receive Pell Grant funds from one school at a time.


How to Apply
To be considered for a Pell Grant, students must complete the Free Application for Federal Student Aid (FAFSA®) each year. Schools use the FAFSA information to determine whether a student qualifies and how much they can receive.

Understanding the cost of attendance (COA) at your school is important because COA—such as tuition, fees, housing, meals, and other expenses—helps determine how much financial aid you may need.


Award Amounts
Pell Grant amounts change each year.

Your exact amount depends on:

Some students may qualify for up to 150% of their scheduled Pell Grant in one academic year. This is sometimes called “year-round Pell.” For example, if you normally receive $2,000 for the full year, you could receive an additional $1,000 for extra terms if eligible.

Students can receive Pell Grants for no more than 12 full-time terms (about six years). Federal Student Aid notifies students who are approaching their limit.

If a student qualifies for Pell, the school receives enough federal funding to award the full eligible amount. Other forms of aid do not reduce Pell Grant eligibility.

Additional Eligibility
Students whose parent or guardian died while serving in the military or working as a public safety officer may be eligible for additional Pell Grant funds.


How Funds Are Delivered


Maintaining Eligibility
To continue receiving Pell Grants, students must:

Students become ineligible once they earn a bachelor’s or professional degree or once they use all 12 terms of Pell Grant eligibility.

 

 

Federal Supplemental Educational Opportunity Grant (SEOG)

The Federal Supplemental Educational Opportunity Grant (FSEOG) is a type of financial aid designed for undergraduate students who demonstrate exceptional financial need. This program is managed directly by Arkansas State University's Financial Aid Department.

How to Apply
To be considered for an FSEOG, students must complete the Free Application for Federal Student Aid (FAFSA®). The information on the FAFSA helps the school determine each student’s level of financial need. Schools award FSEOG funds to students with the highest need first. Like other federal grants, the FSEOG generally does not need to be repaid unless certain repayment situations apply. (Source: Federal Student Aid)

Award Amounts
Eligible students may receive between $100 and $1,000 per year, depending on their financial need, the timing of their application, the amount of other aid they receive, and how much FSEOG funding the school has available. Arkansas State University receives a limited allocation of FSEOG funds from the U.S. Department of Education. Once our school has awarded all of its available funds for the year, no additional FSEOG grants can be given. This is different from the Federal Pell Grant, which guarantees funding for every eligible student. For this reason, it is important to submit the FAFSA as early as possible and pay attention to your school’s campus-based aid deadlines. (Source: Federal Student Aid)

How Funds Are Delivered
If you qualify for an FSEOG, your financial aid counselor can apply this grant towards your Financial Aid account.

Maintaining Eligibility
To continue receiving the FSEOG, students must remain enrolled as undergraduates and cannot already have a bachelor’s degree. Eligibility for any federal student aid—including the FSEOG—requires completing the FAFSA each academic year. (Source: Federal Student Aid)

Federal TEACH Grant - Teacher Education Assistance for College and Higher Education

The Teacher Education Assistance for College and Higher Education (TEACH) Grant is a federal grant for students who plan to become teachers in certain high-need subject areas. Unlike most federal grants, the TEACH Grant requires you to complete a teaching service commitment after finishing your program. If you do not complete this service, the grant will be converted into a Direct Unsubsidized Loan, and you will have to repay it with interest.
(Source: Federal Student Aid)


How TEACH Grant Communication Works

Students who receive a TEACH Grant now work directly with the U.S. Department of Education to:

Federal Student Aid Programs – TEACH
P.O. Box 300010
Greenville, TX 75403
Fax: 540-212-2415
(Source: Federal Student Aid)


Who Can Receive a TEACH Grant?

To qualify, a student must:

Undergraduate 

Graduate 

Academic Requirements 

Students must either earn a GPA of 3.25 or better) or have scored in the 75th percentile or better on a nationally-formed admission test (such as SAT or GRE) to qualify to receive and maintain the TEACH Grant award. 

*Current teachers are not required to meet the GPA requirements upon initial TEACH Grant award but must maintain the 3.25 GPA requirement to continue eligibility. 


Grant Amounts

The TEACH Grant can provide up to $4,000 per year.
Due to federal budget rules, awards for any grant first paid between Oct. 1, 2020, and Oct. 1, 2026 are reduced by 5.7%, meaning the maximum award during this period is $3,772.
(Source: Federal Student Aid)

Grant disbursed on or after 

October 1, 2021 

(5.7% reduction rate) 

A-State Online 

Only Registered 

Graduate Hours 

Registered 

Graduate Hours 

Registered 

Undergraduate 

Hours 

Award 

Amount 

Full-time 

9 and above 

9 and above 

12 and above 

$1,886 

Three-quarter time 

6 

7-11 

7-11 

$1,414 

Half-time 

3 

6 

6 

$943 

Below half-time 

n/a 

2 and below 

5 and below 

$0 

Summer Semester 

Enrollment Status 

A-State Online 

Only Registered 

Graduate Hours 

Registered 

Graduate Hours 

Registered 

Undergraduate 

Hours 

Award 

Amount 

Full-time 

6 and above 

6 and above 

12 and above 

$1,886 

Three-quarter time 

n/a 

7-11 

7-11 

$1,414 

Half-time 

3 

3 

6 

$943 

Below-half-time 

n/a 

2 and below 

5 and below 

$0 

 

Grant disbursed on or after 

October 1, 2022 

(5.7% reduction rate) 

A-State Online 

Only Registered 

Graduate Hours 

Registered 

Graduate Hours 

Registered 

Undergraduate 

Hours 

Award 

Amount 

Full-time 

9 and above 

9 and above 

12 and above 

$1,886 

Three-quarter time 

6 

7-11 

7-11 

$1,414 

Half-time 

3 

6 

6 

$943 

Below half-time 

n/a 

2 and below 

5 and below 

$0 

Summer Semester 

Enrollment Status 

A-State Online 

Only Registered 

Graduate Hours 

Registered 

Graduate Hours 

Registered 

Undergraduate 

Hours 

Award 

Amount 

Full-time 

6 and above 

6 and above 

12 and above 

$1,886 

Three-quarter time 

n/a 

7-11 

7-11 

$1,414 

Half-time 

3 

3 

6 

$943 

Below-half-time 

n/a 

2 and below 

5 and below 

$0 

*Award amounts may change based upon sequestration amounts determined by the Federal Processor. 


Service Obligation (Your Teaching Requirement)

To keep the grant from turning into a loan, you must:

  1. Teach full-time for four years

  2. Work at a school or educational service agency that serves low-income students

  3. Teach in a high-need field (such as math, science, special education, foreign language, or another subject listed on the Teacher Shortage Area Nationwide Listing)

  4. Complete your four years of teaching within eight years after leaving your program
    (Source: Federal Student Aid)

You must complete:

In some cases, the same teaching service period may count for both.
(Source: Federal Student Aid)


What Happens If You Do NOT Meet the Requirements?

If you do not complete the required service:

You also have the option to request your grant be converted to a loan before completing the service if you already know you will not fulfill the teaching obligation.

**Please remember: Once a TEACH Grant has been converted to a loan, it cannot be converted back to a TEACH Grant. 
(Source: Federal Student Aid)


Programs That Qualify

A TEACH Grant-eligible program is one that:

Each college decides which of its programs qualify, so a program could be eligible at one school but not at another.
(Source: Federal Student Aid)


What Counts as a High-Need Field?

High-need subject areas include:

To count, the subject must be listed:


Where You Must Teach

Your teaching must take place at a school or educational service agency that serves low-income students. These schools are listed in the Teacher Cancellation Low-Income Directory (TCLI).
Schools run by the Bureau of Indian Education (BIE) also qualify automatically.
(Source: Federal Student Aid)


Suspensions of Your Service Deadline

You may request a temporary pause on the eight-year service window for reasons such as:

Each suspension type has time limits, usually up to 3 years.
(Source: Federal Student Aid)

Your service obligation may be discharged (canceled) if:


Submitting Proof of Teaching

Each year you complete teaching service, you must submit documentation, certified by your school’s chief administrative officer, proving that:

Forms can be uploaded on StudentAid.gov or mailed/faxed to the address provided earlier.
(Source: Federal Student Aid)

 

For additional information regarding the TEACH Grant please go online to https://studentaid.gov/teach-grant-program. 

 

Federal Work-Study

 

The Federal Work-Study Program (FWS) offers part-time job opportunities for eligible students to earn income that helps cover educational expenses while attending college or career school. Students at both the undergraduate and graduate levels who demonstrate financial need may participate. Work-Study positions can be on campus or with approved off-campus employers and, whenever possible, focus on community service or are related to the student’s field of study.

 

How Do I apply for Federal Work-Study Funds? 

Students must complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and indicate they are interested in the work-study program. Students are encouraged to complete the FAFSA as early as possible as funds for this program are limited. Students must complete the FAFSA every year to receive FWS. Receipt of FWS one year does not automatically imply that the student will receive FWS the next year. 

Types of Jobs

Federal Work-Study places emphasis on positions that involve community service or work connected to a student’s field of study. (Source: Federal Student Aid)

 

Where Students Work

Jobs may be located:

Because funding is limited, students interested in Work-Study should complete the FAFSA as early as possible. (Source: Federal Student Aid)

 

Earnings

Students participating in Work-Study will earn at least the federal minimum wage, though some jobs may pay more depending on the role and required skill level. A student’s total earnings are determined by:

(Source: Federal Student Aid)

 

How Students Are Paid

Payment methods differ based on student classification:

(Source: Federal Student Aid)

Students are paid every two weeks. Payment is applied to the student's account. Any excess funds will be processed as a refund by the Treasurer's Office. 

 

Work Hours

Students cannot work unlimited hours. Earnings may not exceed the total amount of the student’s Work-Study award. When assigning work schedules, the employer must consider the student’s class schedule and ensure that work does not interfere with academic progress. (Source: Federal Student Aid)

 

What are my responsibilities as a FWS worker?