The federal government offers grants to help pay for college — and unlike loans, grants don't have to be repaid
Federal education grants are money the government provides to help students pay for college that does not have to be paid back. They are different from federal student loans, which do have to be repaid with interest. Federal grants are awarded based on financial need, and in most cases a single application — the Free Application for Federal Student Aid, known as the FAFSA — is all it takes to be considered for them.
This page covers the three federal grant programs currently available to undergraduate students: the Pell Grant, the Federal Supplemental Educational Opportunity Grant, and the TEACH Grant. For information on scholarships and grants from private sources, see the college scholarships and grants page. For the full range of federal student loan options and repayment programs, see the student loan payment assistance guide.
Start with the FAFSA — it is the gateway to all federal aid
To be considered for any federal grant, you must submit the FAFSA each year you are in school. The FAFSA collects information about your household income, family size, and assets and uses it to calculate how much financial need you have. That calculation determines what federal aid you qualify for, including grants, work-study, and loans.
The FAFSA opens each October for the following academic year. Submitting it as early as possible matters for some programs — particularly the FSEOG, which is distributed by individual schools until their funds run out for the year. Waiting until late spring to file can mean missing money you would otherwise have received. The FAFSA is at https://studentaid.gov/h/apply-for-aid/fafsa and is free to complete.
- SCAM WARNING: Be cautious of websites that charge a fee to help you file — the FAFSA itself costs nothing.
The Federal Pell Grant
The Pell Grant is the largest federal grant program and the one most students with financial need will encounter first. It is available to undergraduate students who have not yet earned a bachelor's degree and who demonstrate financial need based on their FAFSA results. Unlike some aid programs, it is not distributed through individual schools on a limited-funds basis — every student who qualifies receives it.
The amount each student receives depends on their financial need, how many credit hours they are enrolled in, and the cost of the school they attend. Award amounts are set annually by Congress and change from year to year. The current maximum and minimum award amounts for the active academic year are listed at https://studentaid.gov/understand-aid/types/grants/pell.
Students can receive Pell Grant funding for the equivalent of up to six full-time academic years. Once that lifetime limit is reached, no further Pell funding is available regardless of continued financial need — so it is worth being aware of how much eligibility you have used, particularly if you change majors, transfer schools, or take time off. You can check your remaining lifetime eligibility at any time by logging into your account at studentaid.gov.
One recent change worth knowing: students who receive non-federal scholarships or grants that cover their entire cost of attendance at their school may no longer qualify for a Pell Grant in the same year, even if they would otherwise be eligible. If your school's financial aid office notifies you of a change in your Pell eligibility, this rule may be the reason. Ask your financial aid office to explain how your aid package is being calculated.
The Federal Supplemental Educational Opportunity Grant (FSEOG)
The FSEOG is an additional need-based grant for undergraduate students with exceptional financial need — specifically, students with the lowest Student Aid Index scores on their FAFSA, most of whom also receive a Pell Grant. Unlike the Pell Grant, FSEOG funds are given to participating schools in a fixed annual amount, and each school distributes that money to its most financially needy students until the funds are gone. Not every college participates in the FSEOG program, and at schools that do participate, the money is often exhausted well before the end of the academic year.
There is no separate application for the FSEOG. Your FAFSA results determine whether you are considered, and your school's financial aid office handles the distribution. Because availability depends on when you apply and how quickly your school's FSEOG funds are depleted, submitting your FAFSA early is the most direct way to improve your chances. The maximum annual FSEOG award and current program details are at https://studentaid.gov/understand-aid/types/grants/fseog.
The TEACH Grant
The Teacher Education Assistance for College and Higher Education Grant — the TEACH Grant — is different in structure from the Pell and FSEOG. It is available to undergraduate and graduate students who are completing coursework needed to become a teacher, and it comes with a binding service obligation that must be understood before accepting the award.
To receive a TEACH Grant, you must be enrolled in a qualifying program at a participating school, maintain a qualifying grade point average, and agree in writing to teach full-time in a high-need field at a school that serves low-income students for at least four years within eight years of completing your program. High-need fields are subjects where there is a documented shortage of qualified teachers — the list is updated annually by the Department of Education and includes subjects like mathematics, science, special education, and certain foreign languages. The list for the current year is at https://studentaid.gov/understand-aid/types/grants/teach.
The critical thing to understand about the TEACH Grant is what happens if the service obligation is not fulfilled. If you do not complete the required four years of qualifying teaching service — or if you fail to submit the annual documentation required to confirm you are on track — the grant automatically converts to an unsubsidized Direct Loan, with interest charged retroactively from the date the grant was originally disbursed.
That means a student who accepts TEACH Grant funds and then does not go into teaching, or who teaches but fails to submit the required paperwork on time, ends up with loan debt that has been accruing interest for years. This conversion has happened to a significant number of TEACH Grant recipients, often due to paperwork errors rather than a failure to teach. Anyone considering the TEACH Grant should read the program terms carefully and maintain the annual certification requirements throughout their teaching service.
The Department of Education, StudentAid.gov provides customer support from The Loan Discharge and Forgiveness Customer Support. Call 1-888-303-7818 or additional contact information is at https://studentaid.gov/help-center/contact
What federal grants do not cover
Federal grants are limited to students who demonstrate financial need based on FAFSA results and who meet the specific eligibility requirements of each program. Graduate students are not eligible for the Pell Grant or FSEOG. Students who have already earned a bachelor's degree are not eligible for the Pell Grant. Students attending less than half-time may receive reduced amounts or no grant aid at all depending on the program.
Federal grants also do not cover every cost of attendance at every school. Even students who receive the maximum Pell Grant will often find it covers only a portion of tuition, fees, housing, and books at four-year institutions. Combining federal grants with institutional scholarships, private scholarships, and — where necessary — federal student loans is how most students assemble enough aid to make college work financially.
Federal grant programs, eligibility rules, and award amounts are set by Congress and updated annually. The programs described on this page — the Pell Grant, FSEOG, and TEACH Grant — were active at the time of writing. Program details, maximum award amounts, and participation requirements change from year to year. Verify current program information directly at studentaid.gov before making financial or enrollment decisions. Nothing on this page constitutes financial or legal advice.
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