Fellowships are grants for post-graduate study, research or work placement. They are usually awarded to graduate students based on the applicant's academic excellence. Financial need is rarely taken into account.

Most fellowships provide a stipend for living expenses in addition to funds for tuition, fees, and other educational expenses. Most fellowships are awarded to students who pursue specific research projects, or attend specific universities only. Each fellowship has its own eligibility requirements and awards - make sure you are eligible before applying.

A grant is a monetary gift to qualified undergraduate students, primarily with the most financial need. Eligibility is based on financial need as determined by the FAFSA. Two types of grants are Federal Pell Grant, and the Supplemental Educational Opportunity Grant (SEOG).

Due to limited funding, Federal Pell Grant recipients are given priority to receive SEOG's. This is a federally funded, campus-based program administered directly by the financial aid office at each participating school. Not all schools participate in both programs. It is important to apply for financial aid early so that both of these programs are available to you.

A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree. (A professional degree would include a degree in a field such as pharmacy or dentistry.) For many students, Pell Grants provide a foundation of financial aid to which other aid may be added.

Pell Grants are awarded on a financial need basis. Financial need is calculated by subtracting the Expected Family Contribution (EFC) from the cost of attendance, and is the standard formula the U.S. Department of Education uses to evaluate the information you report when you apply. If your EFC is below a certain amount, you'll be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements.

Awards for the 1999-2000 award year (July 1, 1999 to June 30, 2000) will depend on program funding. The maximum award for the 1998-99 award year was $3,000. You can receive only one Pell Grant in an award year. How much you get will depend not only on your EFC but also on your cost of attendance, whether you're a full-time or part-time student, and whether you attend school for a full academic year or less. You may not receive Pell Grant funds from more than one school at a time.

A Federal Supplemental Educational Opportunity Grant (FSEOG) is for undergraduates with exceptional financial need--that is, students with the lowest Expected Family Contributions (EFCs)--and gives priority to students who receive Federal Pell Grants. An FSEOG doesn't have to be paid back.

The U.S. Department of Education guarantees that each participating school will receive enough money to pay the Federal Pell Grants of its eligible students. There's no guarantee every eligible student will be able to receive an FSEOG; students at each school may be awarded an FSEOG based on the availability of funds at that school.

You can receive between $100 and $4,000 a year, depending on when you apply, your level of need, the funding level of the school you're attending, and the policies of the financial aid office where you attend school.

You can apply for a Federal Grant in the same way you would any other Federally funded aid program, filling out the FAFSA. You can fill out the FAFSA online, or fill out the form and mail it in. Ask your guidance counselor for a copy or contact the Federal Student Aid Information Center at P.O. Box 84, Washington, DC 20044, 1-319-337-5665.

For additional information about applying for financial aid and the FAFSA, refer to the Applying for Financial Aid section.