Need Based Grants
Need based grants are free sources of grant money that students receive based on their financial need. Although most people require help to pay for college some students come from very low income families which prevents them from being able to afford to attend school without financial help. Need based grants are provided to students whose family income is below a set threshold determined by the federal government.
Most need-based grants are funded by the federal government, which distributes millions in free grant money to low-income students each year. The most popular grant program is the Federal Pell Grant, which provides students with grants for school if their families’ annual income is below $50,000. Students receive more money through the program if their family income is low, so if your family has an income of $18,000 you would likely receive more money from the Pell than someone whose family income was £25,000. If students qualify for the Pell, they are automatically considered for the other federal need-based grants; the Work-Study Program and the Supplemental Education Opportunity Grant.
Unlike college scholarships, need-based grants do not require certain grades or merit to apply for them. If your high school grades are below average, you can still receive a need based grant to attend a school, you can also reapply for need-based grants every academic year until you achieve an undergraduate degree or an equivalent certificate without having to maintain a high GPA.
The benefits of need-based school grants are that you are not required to pay them back, unlike student loans. If your family income increases whilst you are at school, the next time you apply for need-based grants, you may receive less than the previous year and vice versa. It is important that you remain in college for the duration of the study program. If a student drops out of college or reduces their college credit hours during the academic year, they may be required to pay back some or all the need-based grant money they received. Therefore, it is important you stay enrolled in your agreed course of study to be able to keep your grants.
If you wish to apply for need-based grants, begin by completing a FAFSA application. The Free Application for Federal Student Aid is the only way you can apply for the Pell grant.
Your school will send you a notification letter outlining what need-based grants you can receive and their value. When you enrol and begin your college program the school will receive your grant money and use it to pay your tuition fees. Any leftover grant money will be given to you to pay for books and other related school expenses.