Grants from federal and state governments
Grants are usually awarded based on financial need, with need determined when students fill out the Free Application for Federal Student Aid form (FAFSA). Use the FAFSA4caster to obtain an estimate of eligibility for federal student aid. The following major grant programs are administered by the federal government and the State of Minnesota:
Federal Pell Grant
The Federal Pell Grant is the largest federal grant program that provides funding to students from low- and middle-income families. The amount of grant money that a student can receive depends upon their college’s cost of attendance; family size, whether the student is attending on a full-time or part-time basis, and the family's financial situation, which they report on the Free Application for Federal Student Aid (FAFSA). Pell grants range from $400 to $4,050. The size of the program and amount of aid available are determined by Congressional appropriation levels. For more information, see the Minnesota Office of Higher Education program description.
Federal Supplemental Educational Opportunity Grant (SEOG)
The Federal Supplemental Educational Opportunity Grant (SEOG) is awarded and administered by each college. Funding is provided directly to the schools in the form of a block grant. The award amount is set by the institution’s financial aid office. Thus, the aid varies from school to school as does the deadline for the aid application. A student may receive up to $4000 in SEOG per year depending on need, the availability of funds at the specific school, and the amount of other aid a student is receiving. Priority is given to students eligible for Pell Grants. For more information about SEOG, see the Minnesota Office of Higher Education program description.
Minnesota State Grant Program
Minnesota State Grants are funded by state government appropriations and available for low- and middle-income Minnesota students attending Minnesota colleges and universities. The Minnesota State Grant program is designed to complement the Pell Grant, and information submitted on the Free Application for the Federal Student Aid (FAFSA) is used to determine both awards. The maximum combined Pell Grant and Minnesota State Grant award in 2006-2007 is $9,438 at a private four-year college. In 2005-06, 71,000 Minnesota students received a State Grant.
Minnesota’s State Grant Program is built on the principle that students, parents and federal and state taxpayers all have an interest — and a role — in helping our citizens attend the college program that best meets their needs. This principle, called “Design for Shared Responsibility” is an award formula first implemented by the state during the 1983-84 academic year. This policy principle makes the State Grant Program one of the best-designed student aid programs in the country. In its current form, the program shares the burden of paying for college as follows:
- First, students pay 46 percent of the calculated cost of attendance;
- Then, families pay the amount determined by the FAFSA parent or student contribution;
- Finally, if student and family resources are insufficient, taxpayers pay the amount determined by Pell and State Grant eligibility guidelines.
This model ensures that students have a choice among institutions and education programs. For more information on the mechanics and impacts of the state grant program, see the see the Minnesota Office of Higher Education program description.
The Post-Secondary Child Care Grant Program
Minnesota offers the Post-Secondary Child Care Grant to qualifying low-income Minnesotans who need child care assistance in order to attend classes. Students must have a child that is 12 years old or younger (14 years old or younger if the child is handicapped). Students may not participate in the program if they are receiving aid from the Minnesota Family Investment Plan (MFIP). For 2006-07, the maximum available to a full-time student is $2,300 for each eligible child per academic year. Assistance may cover up to 40 hours of child care per week for each eligible child. For more information about the Post-Secondary Child Care Grant Program, see the see the Minnesota Office of Higher Education program description.