Which of the following is a need-based grant based on highest financial need as expressed by the lowest SAI, and must be provided to a qualifying student?

• A. Federal Pell Grant
• B. TEACH Grant
• C. Veterans Grant
• D. FSEOG Grant

Answer: (A)

The main idea is that need-based aid uses the Student Aid Index (SAI) to measure a student’s financial need—the smaller the SAI, the greater the need. The federal Pell Grant is designed to meet the demonstrated need of eligible undergraduate students, with eligibility determined directly from that need. If a student qualifies for Pell, the grant is awarded up to the maximum amount and does not require repayment, making it an entitlement for those with sufficient need. TEACH Grant targets future teachers and carries a service obligation, not purely based on need. A veterans grant relates to military benefits rather than the need-based formula. FSEOG is another need-based award but is limited in funds and awarded after Pell; not guaranteed in the same way. So, the grant based on the greatest need as shown by the lowest SAI and that must be provided to a qualifying student is the Pell Grant.