Federal Educational Opportunity Grant

Students with very restricted financial resources can qualify for a Federal Supplemental Educational Opportunity Grant, or FSEOG. The FSEOG supplements the Pell Grant, with awards up to $4000.

The FSEOG provides an important financial boost to students who demonstrate the greatest financial need. Funds can be applied toward college tuition, fees, and related educational costs.

Are You Eligible?

If you meet the following basic requirements, you are eligible to apply for the Federal Supplemental Educational Opportunity Grant. You must be:

• A U.S. citizen, or qualified non-citizen
• A registered student working toward your first bachelor's degree
• Not in default on any federal student loan
• Not in possession of a Pell Grant overpayment (e.g., if you received a full Pell Grant in a previous year and attended less than full
time)

The information you provide on your FAFSA (Free Application for Federal Student Aid) determines whether you are eligible to receive the FSEOG.

Award Amount

The amount of the FSEOG grant depends on the extent of your financial need. From the information you submit on the FAFSA, the Department of Education processing center calculates your Expected Family Contribution (EFC), which is the amount you and your family should be able to contribute toward your education expenses. The processing center sends you a Student Aid Report (SAR). The financial aid department at your school uses the EFC on your SAR to determine if you are eligible for FSEOG and for how much you quality. Awards range from $100 to $4000 a year.

In determining your financial need, the financial aid office takes into account the following factors:

• Your EFC - the lower your EFC, the greater your chance of receiving an FSEOG in addition to a Pell Grant
• Estimated Cost of Attendance (COA) at your school - including tuition and fees, books, room and board, and other expenses related to
your education
• Other financial aid awards
• FSEOG funds available at your school
• Your school's financial aid awarding policies

Receiving Your Award Payment

The FSEOG is funded primarily by the federal government, but administered through your school's financial aid office. The government provides 75% of the funds, and the school is expected to contribute the rest. Your school will inform you of the amount of your award and method of payment. Your award can be credited to your school account or paid directly by check. Federal regulations require at least two payments per year, or one per term.

Looking Ahead

Your FSEOG award applies only to the upcoming school year, but you can reapply each year for a new grant. You can continue to receive FSEOG through receipt of your bachelor's degree. Each year you need to file a renewal FAFSA, which allows your financial aid administrator to reevaluate your financial situation every year. If your finances don't change and FSEOG funding remains stable, you may be able to receive the FSEOG throughout your degree program.

The FSEOG is among the most competitive of federal student aid awards, reserved for the students who show the most need. If you qualify for both the Pell Grant and this supplemental grant, you could be looking at a grant award of up to $8310--a nice discount on your college expenses, and best of all, you don't need to pay it back.


Author: Sonja Albrecht

Source(s)
Federal Grants Wire
http://www.federalgrantswire.com/federal_supplemental_educational_opportunity_grants.html

FSEOG
http://www.fseog.com/

Starting in the 2009 tax year, under the American Recovery and Reinvestment Act (ARRA), more parents and students will qualify over the next two years for a tax credit, the American Opportunity Credit, to pay for college expenses.

The American Opportunity Credit is not available on the 2008 returns taxpayers are filing during 2009. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits

Click here to read more from irs.gov

Click here for application form