The Federal Supplemental Educational Opportunity Grant, or FSEOG, provides students with financial aid that, unlike a student loan, does not have to be repaid. The Free Application for Federal Student Aid, or FAFSA, is used by students to apply for a FSEOG.
FSEOG is a program for undergraduate students that demonstrate exceptional financial need. These are families with the lowest Expected Family Contribution (EFC), and priority is given to students who also receive Federal Pell Grants. A Federal Supplemental Educational Opportunity Grant does not have to be repaid.
In 2017, a student can receive between $100 and $4,000 each year. Aid will vary with demonstrated need, the funding level provided to the college or university, as well as the policies of the financial aid office of that school. These grants can be used to pay for college expenses at 3,800 post-secondary institutions. After completing the FAFSA, a Student Aid Report will be sent to the student, outlining the Expected Family Contribution, or EFC. The Expected Family Contribution is the basis for awarding these grants.
In 2011, there were 1.3 million FSEOGs awarded, with an average award value of $716. Participating schools will credit the student's account, make payment directly to the student, or use a combination of these methods. Students must be paid at least once a term by their schools. Payment of these grants is guaranteed by the U.S. Department of Education.