Spending a couple of hours filing the Free Application for Federal Student Aid, more commonly known as the FAFSA®, may not seem like your idea of fun. However, skipping the FAFSA could mean losing out on need-based grants. If you qualify, grants can be an incredibly helpful addition to your financial aid award for one main reason: You generally don’t have to repay them.
Let’s jump into some specific details about grants, including the connection between the FAFSA and grants, types of grants, and more information about this worthwhile addition to your financial aid award.
Table of Contents
Key Points
• The FAFSA helps students access free money for college, including various grants.
• Pell Grants are the largest federal grant program for undergraduates, with a maximum award of $7,395 for 2025-26.
• FSEOG grants are need-based and range from $100 to $4,000 per year.
• TEACH Grants require a commitment to teach in a high-need field at a low-income school for at least four years.
• Grants typically do not need repayment, but exceptions exist for early withdrawal or failing service obligations.
Does FAFSA Give Grants?
The FAFSA itself doesn’t give grants because the FAFSA is an application. When you file the FAFSA, the colleges and universities you have on your list will use this information to determine the specific amount and types of grants (and other financial aid) you are eligible for. Grants may come from:
• The federal government
• State governments
• College or career schools
• Private or nonprofit organizations
đź’ˇ Quick Tip: You could make no payments on some private student loans for six months after graduation.
Does FAFSA Give Grants for Graduate School?
Certain grants, such as Pell Grants, go to undergraduate students only. However, graduate students can tap into a few federal programs, though these are usually need-based. Here are two examples:
• TEACH Grants: Graduate students can get a TEACH Grant as long as they agree to teach in a high-need field in a school for low-income students. They must also agree to fulfill a few other requirements, as well.
• Fulbright Grants: Qualified graduate students can tap into the U.S. Fulbright Program to pursue graduate study, conduct research, or teach English abroad. This program is sponsored by the U.S. Department of State and can help students expand upon their international studies.
Some corporations and other organizations also offer grants for graduate students, though it’s important to note that the FAFSA isn’t necessarily needed to qualify. Take a close look at the qualifications for corporate grants and other organizations as you find them.
Is Pell Grant the Same as FAFSA?
No, the Pell Grant is not the same as the FAFSA, which is simply an application. The FAFSA is not the actual entity that gives you financial aid. Federal grants, like the Pell Grant, come from the federal government through the U.S. Department of Education.
Types of FAFSA Grants
Let’s walk through a few types of grants and their requirements that you may become eligible for when you file the FAFSA.
Pell Grants
The Pell Grant program is the largest federal grant program available to undergraduate students. In order to qualify for the Pell Grant, you generally must demonstrate financial need.
How much can you receive from the Pell Grant? For the 2025–26 award year, the maximum Federal Pell Grant is $7,395. Check from year to year because the award amount might change slightly.
The exact amount you’ll get depends on your Student Aid Index (SAI), formerly known as Expected Family Contribution (EFC), the cost of attendance (determined by your school for your specific program), your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.
If you have a parent or guardian who lost their life either while on duty in the military after September 11, 2001, or while performing duties as a public safety officer, you may be able to receive a maximum Pell Grant award regardless of financial need. To qualify, you’ll need to check “yes” next to the appropriate question on the FAFSA form. You’ll then be asked to follow up with documentation.
Federal Supplemental Educational Opportunity Grants (FSEOG)
The need-based Federal Supplemental Educational Opportunity Grant (FSEOG) gives each participating school a certain amount of FSEOG funds, and these schools give FSEOG Grants to students who have the most financial need.
You can receive between $100 and $4,000 a year, depending on:
• Financial need
• Amount of other aid you receive
• Availability of funds at the institution you attend
Teacher Education Assistance for College and Higher Education (TEACH) Grants
The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program gives you funds through a TEACH Grant-eligible program at a school that participates in the program. You must agree to:
• Teach in a high-need field full time for at least four years.
• Complete the required four years of teaching within eight years after you graduate.
• Teach at a low-income elementary school, secondary school, or educational service agency.
You must also undergo TEACH Grant counseling and complete the TEACH Grant Agreement to Serve or Repay to qualify.
Recommended: How to Complete the FAFSA Step by Step
Do You Have to Pay Back FAFSA Grants?
It’s a common question — and a good one! Like scholarships, you generally do not need to repay FAFSA grants. However, there are some situations, such as withdrawing from school early or switching from full-time to part-time status, where repayment might be required.
FAFSA Grant Repayment
While grants generally do not require repayment, there are a few circumstances in which a grant may need to be repaid. Here are some reasons why you might have to repay some or all of a FAFSA grant:
• You left or withdrew early from the program for which you received grants.
• Your enrollment status changed, which impacts your eligibility for the grant.
• You received outside scholarships or grants that reduced your need for grants.
• You failed to complete the service obligation that comes with the TEACH grant (in this case the grant is converted into a loan).
It’s a good idea to look carefully at the requirements for each grant. You can ask a financial aid professional at your college or university for specific information about grant eligibility, award amounts, and other requirements.
Additional Funding Options for College
When you receive a financial aid award from a college, it may include financial aid such as FAFSA grants and scholarships, work-study, and federal student loans. Some students may also consider borrowing private student loans. Let’s walk through the definition of each.
Scholarships
A scholarship is a type of financial aid that you don’t have to repay. Scholarships can be need-based or merit-based (based on talents or interests, independent of your financial need).
Federal Work-Study
Undergraduate, graduate, and professional students with financial need may be eligible for work-study programs. You can tap into part-time jobs, usually on campus, during your enrollment in school. Full- or part-time students can qualify for work-study jobs.
You cannot go over your work-study award limit. In other words, let’s say you receive $1,500 in work-study. You can work as many hours as you can up to that limit. Your school will pay you directly unless you request that they use the money to pay for education expenses (such as tuition, fees, food, or housing).
Your school must participate in the federal work-study program, so check with your school’s financial aid office for more information.
Federal Student Loans
Financial aid awards often contain federal student loans, which come from the federal government, through the U.S. Department of Education.
Take a look at three main types of federal student loans:
• Direct Subsidized Loans: Direct Subsidized Loans are federal loans that have a low interest rate (currently 6.39% for undergraduate students and 7.94% for graduate or professional students). The U.S. Department of Education pays the interest on Direct Subsidized Loans while you are in college. The amount of loan money you can qualify for depends on your year in school and whether you are a dependent or independent student. For example, dependent undergraduates can qualify for $5,500 to $7,500 per year in Direct Loans. However, you cannot receive more than $3,500 to $5,500 of this amount in subsidized loans.
• Direct Unsubsidized Loans: The major difference between Direct Subsidized Loans and Direct Unsubsidized Loans is that the U.S. Department of Education does not pay the interest on Direct Unsubsidized Loans while you are in college. However, the interest rate is the same as with Direct Subsidized Loans (currently 6.39% for undergraduate students and 7.94% for graduate or professional students).
• Direct PLUS Loans for parents and graduate/professional students: Parents can take out Direct PLUS Loans through the U.S. Department of Education. They must undergo a credit check and are responsible for paying all interest on the loan (it’s not subsidized), plus a fee. Currently, parents can borrow up to the full cost of attendance, minus any financial aid. However, borrowing limits will be changing on July 1, 2026. Under the “One Big Beautiful Bill Act,” parents will be limited to borrowing no more than $20,000 per child each year, with a lifetime maximum of $65,000 per student.
Currently, graduate and professional students can borrow funds (up to the full cost of attendance) through the federal grad PLUS loan program. That is also changing on July 1, 2026. Under the new bill, the grad PLUS program will no longer be offered. Graduate students will still be able to access federal loans but will generally be limited to $20,500 per year and $100,000 in total federal loans.
Federal student loans offer benefits such as fixed interest rates and income-driven repayment.
đź’ˇ Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on private parent student loans than federal parent PLUS loans, plus no fees required. Federal PLUS loans also come with an origination fee.
Private Student Loans
Private student loans are loans offered by banks, credit unions, and other private lenders to help students cover the cost of their education. You apply for this type of loan directly with your choice of private lender. Eligibility is primarily based on creditworthiness, which includes factors like credit score, income, and debt-to-income ratio. Many students need a cosigner with good credit history to qualify, as they may not have an established credit history themselves.
You can typically borrow up to the full cost of attendance, including living expenses, which may give you more borrowing power than federal loans. While federal loan interest rates are fixed and set by Congress, private loan rates can be fixed or variable and are determined by your (or your cosigner’s) credit profile.
Federal loans generally offer more flexible repayment options, such as income-driven repayment plans, and may be eligible for forgiveness programs. Private loan repayment options and protections vary by lender and are usually less flexible.
The Takeaway
Completing the FAFSA is one of the best steps you can take to unlock free money for college in the form of grants. While the FAFSA itself doesn’t hand out funds, it’s the key that determines your eligibility for federal, state, and school-based grants. Unlike student loans, grants generally do not need to be repaid, which makes them a highly desirable source of college funding.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
What grant does FAFSA give you?
FAFSA itself doesn’t provide grants; it helps determine your eligibility for federal grants like the Pell Grant and Federal Supplemental Educational Opportunity Grant (FSEOG). These grants are awarded based on financial need and typically do not need to be repaid.
What income qualifies for FAFSA grants?
There is no strict income cutoff for FAFSA grants because eligibility depends on multiple factors, including family size and assets. The majority of Pell grants are awarded to students whose families earn less than $60,000, though some families making more may also qualify if they have multiple dependents or high education costs. The FAFSA calculates your Student Aid Index (SAI) to determine if you’re eligible for need-based grants.
How much is the average FAFSA grant?
The amount you receive depends on your financial need, school costs, and enrollment status. The average Pell Grant award is $4,491 a year, though it can range from a few hundred to over $7,000. Other grants may offer different amounts based on specific criteria.
Can you get free money from FAFSA?
Yes, FAFSA can help you access free money in the form of grants and scholarships that don’t need to be repaid. One of the most common is the Federal Pell Grant, but you might also qualify for the Federal Supplemental Educational Opportunity Grant (FSEOG) or state and institutional grants. Completing the FAFSA is the only way to be considered for most need-based aid, and many schools use it to award their own scholarships. FAFSA can also determine eligibility for federal student loans.
About the author
Melissa Brock
Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.
Photo credit: iStock/syahrir maulana
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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
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