The FSEO Grant Plan offers need-based funds to low-income undergrad students to enhance usage of college education. College students can obtain these awards at any one of approximately 4,000 participating postsecondary institutions. Institutional financial aid staff at participating institutions possesses considerable freedom in deciding how much FSEOG funds to provide individuals who are signed up or approved for enrollment. Priority is provided to those students having “exceptional need” (those with the smallest anticipated family efforts, [EFCs], in the college) and those that may also be Federal Pell Grant recipients.
Grants Determined by US Dept. Of Education
Financial need is determined by the U.S. Department of Education, using a standard formula, set up by Congress, to gauge the financial details reported on the FAFSA and to determine the household’s EFC. The basic components in this common formula will be the student’s income (as well as resources, in the event the student is self-sufficient), the parents’ income and financial assets (if the student is dependent), the family’s household size, and the quantity of relations (not including parents) going to college institutions. The EFC is the amount of: (1) a percentage of net earnings (remaining earnings after subtracting considerations for essential living expenses) and (2) a portion of net assets (assets remaining after subtracting an asset protection allowance). Different assessment rates and considerations are used for dependent students, independent students without dependents, and independent students with dependents. After submitting a FAFSA, the student receives a Student Aid Report (SAR), or the college obtains an Institutional Student Information Record (ISIR), which provides the EFC.
FSEOG allocations are made to qualified institutions for the purpose of providing grants to needy undergraduate college students going to the institution. Institutional allocations are based on institutional requests for program funding using a legal formulation. Under the financing formula, money is allocated to institutions, first, on the basis of the institution’s basic assurance plus the pro rata share obtained during the 1999-2000 award year in the FSEOG Program and, then, based on the total requirement of the eligible undergraduate students attending. Institutions need to provide 25 percent of the financing. Students receive FSEOG funds through participating schools following completing the Free Application for Federal Student Aid (FAFSA) to decide their monetary need.
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