Indiana Freezes Frank O'Bannon Grant Award Schedule

Indiana students applying for the state's main need-based scholarship will see frozen award rates for 2027-28, pending a December budget decision.

Updated on Nov. 13, 2026 in Financial Aid

Screen-print poster illustration of a tall stack of blank-spined books beside a half-filled glass container of coins, in mustard, teal, cream, and rust. — The Indiana Commission for Higher Education voted to freeze Frank O'Bannon Grant award rates for 2027-28, pending a December budget committee decision. AI Illustration. Upload story photo >

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The Indiana Commission for Higher Education voted Thursday to freeze the Frank O'Bannon Grants award schedule at current rates for the 2027-28 school year. The vote, which awaits final approval from the State Budget Committee in December, affects students who rely on Indiana's primary need-based college scholarship.

Why it matters

Demand for the scholarship outpaced available funding after changes in federal financial aid eligibility pushed up applications in 2024, forcing the commission to trim awards and dip into reserves. Freezing the schedule is meant to keep spending within the $168 million lawmakers have appropriated each year since 2021.

The maximum Frank O'Bannon Grant is $10,600 and the minimum is $400, and students must file a Free Application for Federal Student Aid by April 15 each year to qualify. The commission projects $165 million in spending for 2027-28, below the $168 million appropriated, while the state received $44 million in claims against $32 million in available funding for a separate scholarship for children of disabled veterans and public safety officers.

The players

Indiana Commission for Higher Education

The state agency that administers Indiana's higher-education financial aid, including the Frank O'Bannon Grants.

The details

The commission froze the award schedule at current rates so that total spending does not exhaust the $168 million in available funding. Because the schedule is set before the budget is finalized, the frozen rates will apply to eligible students only after the State Budget Committee gives its approval. Students reach the program through the annual FAFSA filing, so the April 15 deadline is the step that determines whether an applicant is considered. Separately, a review of completion rates and graduate outcomes for other popular financial aid programs is expected ahead of the 2027 legislative session.

2021: Lawmakers began appropriating $168 million annually to the scholarship.
2024: Unexpectedly high demand led the commission to trim awards and dip into reserves.
April 15: Annual deadline to file the FAFSA for scholarship eligibility.
December: The State Budget Committee meets to give final approval to the schedule.
2027-28 school year: The frozen award schedule takes effect.

Education Landscape

The freeze follows a 2024 surge in demand that was tied to changes in federal aid eligibility, which pushed Indiana to draw on reserves before lawmakers moved those reserves to the General Fund. It also reflects a broader pattern in which state need-based grants are sized against fixed appropriations even as eligibility rules shift.

If you are planning to attend an Indiana college, the April 15 FAFSA deadline is the step that determines whether you are considered for the Frank O'Bannon Grants, so file on time each year. Ask your school's financial-aid office how the frozen award schedule and the State Budget Committee's December decision could affect your grant amount.

The takeaway

Indiana's decision to freeze the scholarship schedule shows how quickly demand can outpace fixed state funding when federal eligibility rules change. Check the April 15 FAFSA deadline now and confirm your award details with your school's financial-aid office once the December decision is made.