Born in 1926, Hampel was a lifelong resident of Adams, MA. She graduated the former Adams High School in 1945, which was replaced with the Hoosac Valley Middle and High School in Cheshire, MA, and went on to graduate from Becker College.

The Grace S. Hampel Scholarship Fund was originally established at Becker College to support students from Hoosac Valley High School to attend Becker. Upon Becker's closure and the distribution of its assets, the scholarship fund was transferred to Greater Worcester Community Foundation. It will support students of Hoosac Valley High School to attend a college or university in Worcester County.

Grace began her career at Williams College where she worked as a stenographer and secretary to then President James Phinney Baxter III. She later joined the Pittsfield General Electric Co., where she worked for 38 years in various managerial secretary positions. She retired in 1988. In addition to valuing education, she was a supporter of animal rights and conservation. Hampel also had a life-long interest in music and had an extensive classical music collection.