Guide To Federal Education Assistance Programs

Genevieve Carlton, Ph.D.
By
Updated on September 14, 2023
Paying for college can be challenging. Use this guide to navigate federal education assistance programs and maximize your money.
Are you ready to discover your college program?

How to Apply and Get the Most Financial Aid for College

The federal government offers financial aid programs to help college students pay for their education. In 2019, the federal student aid program awarded $246 billion in financial aid, including over $41 billion in grants. Federal education assistance programs like the Pell Grants and TRIO support low-income and first-generation college students.

The Pell Grant awards money to low-income college students. Unlike loans, recipients do not need to repay Pell Grants, making them one of the best forms of financial aid. The TRIO program, which includes Upward Bound, Educational Opportunity Centers, and Student Support Services, offers focused assistance for prospective and current college students.

This guide offers an overview of these federal assistance programs to help students maximize their financial aid while earning a college degree.

Pell Grant

The federal Pell Grant program supports undergraduates in financial need. Students apply for Pell Grants by completing the FAFSA, which determines whether they meet income requirements for the Pell Grant program and how much they can receive. Recipients must submit the FAFSA every year to maintain their eligibility for federal education assistance, including Pell Grants.

The maximum Pell Grant award in 2020/2021 is $6,345. However, recipients do not automatically receive the maximum. The federal student aid program calculates Pell Grant awards based on the applicant’s family’s expected contribution to college expenses, the cost of attending school, program length, and whether applicants plan to attend full time or part time. Learn more about financial aid opportunities.

Who Is Eligible?

Besides completing the FAFSA, to qualify for a Pell Grant, applicants must demonstrate that they:

  • Are currently or will be an undergraduate college student at an accredited postsecondary institution
  • Will have not already earned a bachelor or professional degree
  • Are not currently in prison or jail
  • Are not subject to involuntary civil commitment following prison or jail as a result of committing a sexual offense crime
  • Have a financial need
  • Have a high school diploma, GED or completed the equivalent from a home school setting
  • Be a US citizen, national, resident or have another form of qualified immigrant status

One of the biggest questions concerning eligibility is what constitutes financial need. The US Department of Education determines financial need by looking at information provided in the FAFSA to calculate the student’s EFC. This is then compared to the cost of attendance, or COA. The difference between the EFC and COA is used to determine a student’s financial need.

Students who qualify for a Pell Grant must maintain their eligibility by:

  • Continued enrollment in school
  • Completing a FAFSA every year while in school
  • Making satisfactory academic progress while in school
  • Continuing to meet the basic Pell Grant eligibility criteria that allowed the awarding of the Pell Grant in the first place

“Little known fact: Pell Grants can be included in taxable income to actually qualify a taxpayer from sizable education credits.” said Suzanne Weathers, EA, owner of Weathers & Associates Consulting in Spokane, Washington. “However, universities and those not knowledgeable are telling students/parents this makes them ineligible for credit.”

The IRS warns about this problem: “For students with scholarships, such as Pell Grants, the process for claiming education-related tax credits, like the American Opportunity Tax Credit (AOTC), is unusually complex and results in many eligible students and parents (if the student is a dependent) foregoing tax credits for which they qualify.”

If you qualify for a Pell Grant or any other financial aid, speak with a trusted tax advisor before filing taxes – there might be tax benefits in your situation.

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TRIO

The federal TRIO programs support low-income middle schoolers and high schoolers, first-generation college students, and students with disabilities. Funded by the U.S. Department of Education, TRIO funds outreach and student services programs across the country.

TRIO takes its name from the first three programs: Upward Bound, Educational Talent Search, and Special Services. Since the 1960s, TRIO has grown from these original three programs into eight programs operating in all 50 states and in many U.S. territories. The program’s reach stretches from middle school through the doctoral level, supporting hundreds of thousands of students each year.

The TRIO program awards grants to colleges, secondary schools, and agencies that serve disadvantaged youth. After receiving funds, these organizations develop and implement student services. Qualifying students can participate in TRIO programs through their school or a community-based organization. However, students must meet eligibility requirements to receive services through a TRIO-funded project.

How to Apply for a TRiO Program

Who Is Eligible?

Pell Grant v TRIO Programs

The Pell Grant is Similar to TRIO:

  • Financial need is a primary eligibility requirement.

  • Both require completion of an application, although completion of the FAFSA is not generally a requirement to apply for a TRIO program.

  • The ultimate mission is to help students get into and succeed in college.

  • Colleges and universities often handle both programs, including running the TRIO program and distributing Pell Grants directly to students.

  • The Pell Grant is one single program with one goal in mind: to make college more financially feasible.

  • A student racial background, military service and academic interests are irrelevant when applying for a Pell Grant. Only finances are considered.

TRIO is different from the Pell Grant:

  • TRIO provides a diverse array of assistance to needy to students in the form of programs and activities.

  • TRIO is not college financial aid. Rather, it can help students apply for and obtain financial aid.

  • The applicant’s parents’ educational background is a significant eligibility requirement when applying for a TRIO program.

  • Students who are still several years away from college can apply for and participate in TRIO.

  • TRIO refers to a series of eight individual programs.

  • A student’s racial background, military service and academic interests are important for acceptance into some TRIO programs.

Financial Aid Questions to Ask About the Pell Grant

The Future of These Programs

Despite all the political rhetoric as of late, most federal financial aid programs have
remained intact and funded by the U.S. Congress. Even though the current administration
has expressed a desire to significantly cut federal funding to education initiatives,
Congress has thus far accepted very few of these proposals. Additionally, the bulk of the administration’s proposed cuts to financial aid in higher education focus on eliminating the Supplemental Education Opportunity Grant, subsidized loans, public service loan forgiveness program and the GEAR UP program. The most recent budget proposal left the funding for TRIO programs untouched.

In 2017, Congress raised the maximum Pell Grant award to just over $6,000. Interestingly, the administration’s proposed education budget cuts call for enlarging the number of students potentially eligible to receive a Pell Grant. Under current law, students cannot use Pell Grant awards to pay for an academic program that lasts less than 15 weeks or has less than 600 hours of instructional time. The administration’s proposals would modify these requirements so students can use Pell Grants to pay for short-term certificate and diploma programs, which are common in vocational and trade fields, such as construction and technology.

However, all is not perfect for those taking advantage of the Pell Grant and TRIO. Even with the 2017 increase, the Pell Grant award has failed to keep pace with the rising cost of postsecondary education. Therefore, even though the absolute dollar amount for a Pell Grant has gone up, it doesn’t pay for as much now as it used to. In fact, the Pell Grant’s ability to pay for college costs is at its weakest point in roughly 40 years.

It’s also important to remember that even though the Pell Grant is relatively safe for now, the president and Congress have periodically made requests or proposals to take money from reserves that would otherwise be used to pay for the Pell Grant. While this doesn’t immediately end the grant program, it does put its long-term survival at risk.

Additional Resources

Learn About Financial Aid for Online Colleges

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