Perhaps the most popular government grants for university students, the Federal Pell Grant provides need-based grants to low-income undergraduate and certain postbaccalaureate students to promote access to postsecondary education, according to the U.S. Department of Education at ed.gov. As of 2010, about 5,400 American universities accepted this grant, which awards sums of varying amounts based on expected family contribution, cost of attendance and enrollment status (full or part time, full year or partial year).
In 2009, over $19 billion from the Federal government went to this grant program, along with an additional $17 billion from the U.S. Department of Education Recovery Act. The Federal government awards these grants either directly to the student via check, through the student's university account or via a combination of both methods. To be considered, students must create a FAFSA application and update it yearly.
Similar to the Federal Pell Grant, the Federal Supplemental Educational Opportunity Grant (FSEOG) program provides financial aid to low-income undergraduate university students. The FSEOG targets students with "exceptional need" based on expected family contribution; Pell Grant recipients also receive priority to receive this grant. As of 2010, over 4,000 universities nationwide accept this grant.
After students file and maintain a FAFSA, FSEOG awards rely on the student's (or her family's) income and assets, net income, household size, number of family members attending postsecondary schools and amount of dependents to determine the amount of aid given.
The Federal government's Academic Competitiveness Grant---first made available in 2006---targets students with a financial need who have completed a rigorous secondary school program of study, according to the Federal Student Aid website. The grant defines a rigorous secondary school program as state-established advanced placement courses, honors courses or a combination of certain high school classes (the full list is available at studentaid.ed.gov).
Eligible scholars must be first- or second-year undergraduate students, recipients of the Federal Pell Grant and enrolled at least half-time in a degree program---all while maintaining a cumulative grade point average of at least 3.0 (for second-year students). The Academic Competitiveness Grant awards $750 to first-year and $1,300 to second-year students, in amounts that do not exceed tuition costs when coupled with the Pell Grant. Interested students and families must complete the FAFSA for consideration.