How to Apply for Student Grants With the Obama Stimulus

President Obama's stimulus package was designed to improve the economy over the long term in part by funding education.

President Obama's stimulus package -- formally known as the American Recovery and Reinvestment Act of 2009 -- injected nearly $800 billion into programs to spark new economic activity and bolster the country's financial future. Of the funding, roughly $100 billion went toward education initiatives, including student grants. Grants funded by Obama's stimulus package come in the form of federal student aid. It's easy to apply if you know where to look and what to look for.

Things You'll Need

• U.S. Department of Education PIN
• Social Security number
• Driver's license number (or parent's)
• W-2 forms (or parent's)
• Federal income tax return (or parent's)
• Free Application for Federal Student Aid (FAFSA, available online)
• Student aid report

Instructions

Instructions

1. Obtain a Personal Identification Number (PIN) from the U.S. Department of Education. Do so by visiting the department website and filling out a short application. You'll receive your PIN by e-mail in a matter of minutes.

2. Gather the documents you'll need to apply for grants, including your Social Security card, driver's license and current bank statements. If you're a dependent student, have your parents gather this information for you and for themselves. It helps if both students and parents have already completed their yearly taxes before applying, as you'll need your most recent W-2 forms and federal income tax return.

3. Complete and submit the online Free Application for Federal Student Aid (FAFSA). The application period opens on Jan. 1 each year. Fill in all the requested information, including identification and income information, and academic data.

4. Call 1-800-4-FED-AID to request a paper FAFSA from the Federal Student Aid Information Center if you don't wish to apply online. The form itself is the same. Fill it out and send it back to the Education Department.

5. Receive the Student Aid Report from the Education Department by mail or e-mail, depending on the choice you made on the FAFSA. This sheet restates the information you entered on the FAFSA and details what sort of grant you will receive, if any.

6. Familiarize yourself with the Student Aid Report by understanding the available aid. Federal grants funded by Obama's stimulus include the Pell Grant, Supplemental Educational Opportunity Grant, Academic Competitiveness Grant, and National Science and Mathematics Access to Retain Talent Grant. Grant amounts range from $100 to nearly $5,000. In 2010, the Obama Administration offered $28 billion worth of Pell Grants alone.

7. Complete the FAFSA every year you plan on attending college. The online form saves your information, so the application process is faster in subsequent years.

Tips & Warnings

• Apply as close to the Jan. 1 opening as possible. This helps the government expedite your application, which in turn helps your school expedite your grant.

• By completing the FAFSA, you also have the option to apply for federal student loans. But remember: While grants don't have to be repaid, loans do.

References

• Edutopia: $100 Billion to Education in Obama's Stimulus Package; Alexandra R. Moses; February 2009
• New York Times: Stimulus Plan Would Provide a Flood of Aid to Education; Sam Dillon; January 2009
• Recovery.gov: Agency Reported Data: Department of Education
• Federal Student Aid: What You Should Know Before You Apply
• Federal Student Aid: Completing the FAFSA
• College Board: How to Complete the FAFSA

Resources

• Federal Student Aid: PIN Web site
• Free Application for Federal Student Aid
• Ed.gov; Fiscal Year 2010 Budget Summary; May 2009