Campus-based aid is the group of Title IV programs whose funds are allocated directly to institutions, which then select and award eligible students.
How it works
The Department allocates funds to participating institutions based on historical formulas and institutional requests. The aid office identifies eligible students with remaining need, prioritizes according to federal and institutional policy, and either disburses FSEOG or places the student in a work-study job. Unspent funds can sometimes be carried forward or must be returned. Awards appear in the student’s aid package alongside Pell and loans.
Example: an institution receives an FSEOG allocation. It awards $500 supplemental grants to the highest-need Pell recipients until the allocation is exhausted. A student with a zero Student Aid Index receives the supplemental grant; a student with a higher index and no Pell does not.
How it differs
Pell Grants and Direct Loans are entitlement or quasi-entitlement programs whose amounts are determined by formula and are available at any participating institution. Campus-based aid depends on the institution having an allocation and choosing to award it to the particular student. State grants are funded by states, not by the federal campus-based system.
Common errors
Assuming every high-need student will receive FSEOG or work-study. Treating campus-based awards as portable when a student transfers mid-year. Expecting unused work-study or FSEOG to be converted automatically into loan or grant eligibility.
References
- 1. Federal Student Aid campus-based programsFSEOG, FWS, and Perkins legacy
- 2. 34 CFR Part 673Common provisions
Campus-based aid is the group of Title IV programs whose funds are allocated directly to institutions, which then select and award eligible students.