One of the Title IV programs from the U.S. Department of Education, the federally funded Federal Supplemental Educational Opportunity Grant, or FSEOG, essentially gives free money to students with financial need in order for them to pay college tuition and expenses. You can apply for this grant the same way as you do for other federal student aid programs: by completing the Free Application for Federal Student Aid, or FAFSA. Due to limited funding, however, many schools require that you submit your application by a set priority deadline.
Eligibility
Schools award FSEOG funds to undergraduate students who demonstrate financial need. Financial aid administrators determine your need by evaluating your Student Aid Report and expected family contribution (EFC), which are generated after you complete the FAFSA. You can only receive the FSEOG if you attend a program or school that doesn't exceed four or five years and which leads to your first academic degree. You're not eligible if you're seeking a second bachelor's degree, a graduate degree or a professional degree.
Priority
Federal guidelines mandate a priority order in which financial aid officers award FSEOG funds to eligible students. The "first selection group" consists of students who have the lowest EFCs and who are eligible for federal Pell Grants. For example, if you receive the Pell Grant and have an EFC of "0," you're part of the first selection group. After awarding grant monies to the entire first group, the "second selection group" consists of students with the lowest EFCs and who are not receiving the Pell Grant. If a student loses eligibility for the Pell Grant during the academic year prior to the disbursement date, the school must also cancel his FSEOG award.
Categorizations
Federal guidelines allow schools to create categorizations of students so that the FSEOG can be made "reasonably available" to all eligible students in each category. These categories can be based on criteria like class standing, date of application, enrollment status or a combination of other factors. In deciding the percentage of FSEOG funds to be allocated to each group, federal guidelines leave this decision up to the schools. Schools cannot develop categories for the purpose of excluding a group of students. Also, schools may not set EFC cut-off scores or award the FSEOG on a first-come, first-serve basis.
Award Amounts
During the 2010-11 academic year, you can receive a minimum FSEOG amount of $100 and a maximum of $4,000. If you indicate on the FAFSA or to the school that you're going to enroll for less than a full academic year, the school can prorate your FSEOG amount and award less than the $100 minimum. Also, students who enroll in study-abroad programs can receive up to a maximum of $4,400.
Disbursements
A school can disburse FSEOG funds to its students at its discretion. The only federal requirement is that the school must disburse funds to your student account at least once per term. The school can, however, disburse FSEOG funds to your account during the term in whatever installments it decides best meets your financial need. This typically only happens if you incur fees at an irregular rate or have other financial resources that pay your student account at different periods throughout the term.
Tags: FSEOG funds, academic year, award FSEOG, financial need, Pell Grant, selection group