What are Federal Grants and Do You Have to Pay Them Back?

These days many students choose to study abroad. The reason is that many popular destinations provide a wide range of courses that matches the interest of students, and get global exposure and knowledge of international practices. However, many students are worried about the cost of studying at top universities abroad. But, there is a solution to this problem. Fundings help students to study abroad in their dream university and country. These fundings can be of any type including scholarships, fellowships, loans, or federal grants. And if you wish to know more about federal grants, continue reading the blog to find out more.

What is a Federal Grant?

A federal grant is financial aid that allows the government to fund a project publicly and still remain and operate independently from the state. There is a set of standard requirements for funds. Entities or organizations that offer grants may divide the resource up across one or more periods annually. Moreover, they can also divide the funds among potential recipients. This enables a competitive effort among the applicants for the grant funding.

Generally, the government awards grants on the basis of need. The applicant is usually not required to pay back the grant as long as they meet all the eligibility criteria and obligations. 

Also Read: Study Abroad Scholarships that You Must Explore!

Features of a Federal Grant 

Let us take a look at the features of federal grants:

• A federals grant is the financial aid offered to an applicant to fund their project and program
• These grants are not like loans and thus, need not requires repayment 
• The government provides this grant to faculty members of a university as well to pursue their research in a particular choice of field 
• The state government may also seek out and assign funding for a non-profit organization that helps the citizens 

What are the Types of Federal Grants?

A federal grant can have different requirements depending on its purpose. For example, a university may apply for a grant to lower the tuition rate in order to make it affordable for students from military veterans and their spouses category. University may also avail of financial aid to support the conferences which have a core of a particular subject matter or area of study.

• This grant can be seen as a type of seed funding. It can be used for research efforts or encourage and attract other more substantial project funding.
• Some foundations or professional associations can also offer these grants as financial assistance to graduate students. These students must be focused non developing a thesis based on specific topics that the organization finds relevant and of interest to them.
• Legislative bodies or other such parts of the federal government seek out and assign funding for a non-profit organization that helps the citizens. The money is a supplemental source instead of the primary source of funding.

Also Read: Types of Education Loans for Indian Students

Factors Considered for Grants

The government provides grants on the basis of various factors. Given below are some of the basic criteria that the government considers for providing a grant:

• Academic merit of the students 
• The income of the student (if applicable)
  Income of the family of the student (this includes assets and financial obligations)
• Size of the family of the student (including the number of siblings in college)
• Cost of studying in the particular institution the student plans to attend
• Type of study program; full-time or part-time 

When Do You Have to Pay Back the Grant?

Generally, you are not required to repay the grant however, there could be some circumstances under which you will need to repay it. Check out when you have to repay the grant:

Withdrawal or discontinuation from the program or institution

If you receive a grant but later under any circumstances, you decide to withdraw from the program, before 60 percent of the semester is complete. In this case, you will need to return 50% of the “unearned” portion of their money. The amount of this portion will depend on when in the semester you drop out.

In case of a change in the Enrollment Status

If there is a change in the enrollment status, for example, if you decide to change your type of program from full-time to part-time, you are required to pay the difference. In case you fail to return the amount, your record will be disqualified from getting any such grant in the future. 

Additional financial support 

In case you get another financial support after receiving the grant, you will need to repay some amount back. For example, if you receive any scholarship or other non-federal financial aid, the government may ask for an amount of repayment.

Also Read: The Best Education Loan in India for Study Abroad Purposes

FAQs

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