Grant-based Financial Aid falls into three categories – Federal, Campus-Based and State Grants – which are explained below.  All three types are forms of need-based financial aid, as opposed to merit-based grants or scholarships.

1. Federal Grants
The primary federal grant, which is need-based, is called the Pell Grant, which can be estimated by ESP Wizard.  Pell Grants have the following characteristics –

• Grants are awarded based upon financial need.
• Award amounts for 2007-2008 range between $400 - $4,310 for the school year.
• The amount of the award is determined by the Expected Family Contribution (EFC), the Cost of Attendance (COA) for the given school, and the enrollment status of the student (Full-Time, Half-Time, etc).
• Funds do not require repayment by the student or parent.
• Grants are available to undergraduate students who have not earned a Bachelor's or Professional degree.
• Funds for Pell Grant are awarded directly by the federal government to all students found to be eligible.
• Males applying for the Grant need to register with the Selective Service.

2. State Grants
State Grants provide a source of funds for students and their parents in funding the student's undergraduate education. While the amounts of State Grants that are awarded vary from state to state, the common component in determining eligibility is financial need, along with Expected Family Contribution (EFC), and Cost of Attendance (COA). 401kid ESP Wizard provides families with an overview of the Grant Programs that are presently available in respective states.

3. Campus-Based Grants
On a school by school basis, this third form of need-based grant aid generally flows through a program called Federal Supplemental Education Opportunity Grant (FSEOG).

• Awarded based upon exceptional financial need.
• Grants are awarded from a fixed pool of available funds that the school has to allocate.
• Funds do not have to be paid back.
• Amount of the Grants that are allocated to the student range from $100 to $4,000 per school year.
• Students who were determined to be eligible for Pell Grants with the lowest EFC are given priority, but are not guaranteed to be awarded the FSEOG.
• Awarded to undergraduate students who have not yet earned a Bachelor's or Professional degree.
• Funds are either disbursed directly to student, credited to student's account, or a combination of the two.

Receive Financial Aid Optimization (FAO) services via ESP Wizard college planning software.