Indiana Freezes Frank O'Bannon Grant Awards
The Commission for Higher Education voted to hold scholarship award rates steady for the 2027-28 school year.
Updated on Nov. 13, 2026 in Financial Aid
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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 move keeps spending within the $168 million lawmakers have appropriated each year since 2021.
Why it matters
The Frank O'Bannon Grants is Indiana's primary need-based college scholarship, supporting more than 35,000 students last school year. Unexpectedly high demand in 2024 forced the commission to trim awards and draw on reserves, and lawmakers later returned those reserves to the state General Fund.
The commission projects spending $165 million on the Frank O'Bannon Grants for 2027-28, below the $168 million appropriated. Maximum awards are $10,600 and minimum awards are $400, and the State Budget Committee must still give final approval in December.
The players
Indiana Commission for Higher Education
The state agency that administers Indiana's higher education financial aid programs, including the Frank O'Bannon Grants, and oversees college access and completion policy in the state.
The details
The commission froze the award schedule at current rates so as not to exhaust the $168 million in available funding. Students must file a Free Application for Federal Student Aid by April 15 each year to qualify for the grant.
Timeline
2021: Lawmakers began appropriating $168 million annually to the scholarship.
2024: Unexpectedly high demand forced 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.
Legal Context
The freeze follows the 2024 trim of Frank O'Bannon Grant awards and the draw-down of scholarship reserves, which established the pattern of rationing aid when demand outpaces appropriations. Lawmakers' later return of those reserves to the General Fund shows the state treating the scholarship fund as a budget lever.
Students relying on the Frank O'Bannon Grants should file the FAFSA by April 15 to stay eligible, and the frozen schedule means awards will not rise to match rising costs. Families planning for the 2027-28 school year should expect award amounts to stay at current levels pending the December committee vote.
The takeaway
Indiana's scholarship budget is now being managed by freezing awards rather than expanding them, so students planning college costs should build in the possibility that grant amounts will not keep pace with tuition. Checking eligibility deadlines early remains the most reliable step for securing aid.
What happens next
The State Budget Committee meets in December to give final approval to the frozen award schedule before it takes effect for the 2027-28 school year.
Further reading
For more on how states pay for college, see Financial Aid coverage across Indiana.
Source note: This article includes information reported by Terre Haute Tribune-Star.
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