The federal government has several types of student loans and grants that can help cover the cost of higher education. Student grants have different maximum award amounts and may cover different education-related expenses. You can combine education grants for a bigger reduction of your financial responsibility. 

The CARES Act Higher Education Emergency Relief (HEERF) fund helps cover students’ expenses related to COVID-19 disruption. Colleges and universities can use half of the HEERF grant to pay for administration costs, such as transitioning to online teaching. But they must give the other half to the students. The HEERF grant can pay for eligible expenses, including:

• Child care
• Course material
• Food
• Health care
• Housing
• Technology

The Federal Pell Grant

The FAFSA Pell Grant is awarded to nearly 5.4 million students nationally each year. The maximum award for the 2023-24 academic year is $7,395. If you qualify, the amount of your grant depends on: 

• Your expected family contribution, which is the amount of money your family is expected to be able to contribute toward your college expenses.
• Education costs.
• Whether you attend full- or part-time. 
• If the program is a full academic year.  

FAFSA considers Pell Grants as the foundation of an education assistance package. So, qualified recipients can combine a Pell Grant and GI Bill or other forms of financial aid. 

If you qualify, you can use funds at traditional and online schools that accept Pell Grants, which is any institute that accepts FAFSA. But you cannot use a Pell Grant at multiple schools at the same time. 

If you receive a Pell Grant, your school will first apply it toward tuition, fees, and room and board (if you live on campus). The remaining amount of the grant can be used to pay for books, supplies, transportation and living expenses (if you live off campus). 

According to the most recent legislation under the Biden administration, students who received Pell Grants may be able to get $20,000 of student loan debt forgiven.

Federal Supplemental Educational Opportunity Grants (FSEOG)

The Federal Supplemental Educational Opportunity Grants can provide financial assistance if a student’s EFC is low. The Federal SEOG grant is not available at all schools. About 4,000 FSEOG schools award up to $4,000 a year; funding depends on the specific institution.

If you qualify, you can combine an FSEOG with other awards, but getting additional assistance can affect the total amount of money you can receive. Schools oversee the management of FSEOGs.

The Teacher Education Assistance for College and Higher Education (TEACH) Grant

The Teacher Education Assistance for College and Higher Education grant offers annual awards of up to $4,000 a year to qualified students pursuing teaching degrees. The TEACH Grant comes with academic criteria and after-graduation work requirements. If you receive this grant but do not fulfill all of the conditions, the grant coverts into a loan that you must repay.  

Grants for Military Members

The Iraq and Afghanistan Service Grant (IASG) gives up to $6,895 annually to qualifying students whose parent(s) died as a result of military service. The Department of Education is in charge of overseeing all IASG applications. 

However, the Department of Veterans Affairs (VA) manages VA education benefits and student grant programs, including:

• The Montgomery GI Bill Active Duty (MGIB-AD)
• The Montgomery GI Bill Select Reserve (MGIB-SR)
• The Post 9/11 GI bill

If you qualify for VA education benefits, the total amount of assistance you can get depends on your service length, education program, qualifying category, and programs you have paid into. The VA may cover all or the majority of public in-state tuition and fees, books and supplies, transportation, and housing.