Undergraduates belonging to low-income families have access to yet another federal grant, The Federal Supplemental Educational Opportunity Grant Program, a need based program with a motive to promote post secondary education to the students of financially weakened sections of society. This provision has been made in the Section 413C(c)(2) of the amended Higher Education Act of 1965. There are around 4000 postsecondary institutions participating in the grant program and student can avail of the same in any one of them.
Institutional financial aid administrators have been bestowed with the considerable power and flexibility to decide the amount of grant to be given to the students who have been enrolled or have been accepted for enrollment at the participating institutions. Those students are given priority for The Federal Supplemental Educational Opportunity Grant (FSEOG) that are Pell Grant recipients and in addition have lowest expected family contributions (EFC) at the postsecondary institution.
The grant under FSEOG Program varies from $100 to $4000 for the entire academic year. School can increase the maximum amount from $4000 to $4400 under FSEOG Program for a student who is attending the study-abroad program, which has been approved by the home school for credit. United States Department of Education determines the financial requirement through the use of a standard formula, which has been conceived by Congress for the evaluation of financial facts mentioned in FAFSA and for the determination of family’s expected family contributions (EFC).
Basic aspects for this standard formula are the income of student and his or her assets if he or she is not dependent, the income and assets of parents if the student is dependent on them, size of the family household and other family members if any attending the postsecondary institution excluding parents. Expected family contributions are the aggregate of percentage of net income and percentage of net assets.
Net income is obtained by subtracting allowances for basic living expenses from the total income whereas net assets are assets left after subtracting an asset protection allowance. The assessments rates and allowances are differently used for different students such as for independent students with or without dependents and for dependent students. After a FAFSA is filled, the student obtains a Student Aid Report (SAR), or school gets the Institutional Student Information Record (ISIR) providing the EFC.
The Federal Supplemental Educational Opportunity Grants are also allocated to eligible institutions with an intention of providing grants to the undergraduate students from the impoverished background studying in the institution. The allocations are made to the institutions on the basis of requests received from them under a statutory formula. The institution receiving the grant has to dispense 25 percent of the total funding. Students get grant only after filing FAFSA for determination of their financial need.
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