A grant is money given to you for a specific purpose, like paying for college, that you do not have to repay. In the United States, grants are usually awarded based on financial need, but some are based on merit or other criteria. This article explains what grants are, how they work, and how you can get one.
How Does a Grant Work?
Grants are a form of financial aid that does not require repayment, as long as you meet the terms. The most common type is the federal Pell Grant, which is based on financial need. You must complete the Free Application for Federal Student Aid (FAFSA) each year to be considered.
Grants can come from the federal government, state governments, colleges, or private organizations. Each grant has its own eligibility rules, application process, and deadlines. You typically receive the money directly from your school, and it is applied to your tuition and fees first.
Grant vs. Scholarship vs. Loan
Many people confuse grants with scholarships and loans, but they are different. A grant is usually need-based, while a scholarship is often merit-based. A loan must be repaid with interest, but grants do not need to be repaid.
| Type | Based On | Repayment? | Common Source |
|---|---|---|---|
| Grant | Financial need | No | Federal/state government |
| Scholarship | Merit, talent, or specific criteria | No | Private organizations, colleges |
| Loan | Credit or need | Yes, with interest | Federal government, banks |
Types of Federal Grants
The U.S. government offers several grants for college students. The Pell Grant is the largest and is for undergraduates with exceptional financial need. Other federal grants include the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Teacher Education Assistance for College and Higher Education (TEACH) Grant.
State governments also provide grants, such as Cal Grants in California or the TAP program in New York. Many colleges have their own institutional grants. Private organizations, like foundations and nonprofits, also award grants.
Who Qualifies for a Grant?
Eligibility for most grants depends on your financial need, which is calculated from your FAFSA. You must be a U.S. citizen or eligible noncitizen, have a valid Social Security number, and be enrolled in an eligible degree or certificate program.
Some grants have additional requirements. For example, the TEACH Grant requires you to teach in a high-need field for four years. You must also maintain satisfactory academic progress to keep receiving grants.
Factors That Affect Eligibility
- Your family’s income and assets
- Your enrollment status (full-time or part-time)
- Your cost of attendance at the school
- Whether you have a bachelor’s degree already
How to Apply for Grants
The first step is to complete the FAFSA. The FAFSA opens on October 1 each year, and you should submit it as early as possible because some grants are first-come, first-served. You will need your tax returns, bank statements, and your school’s federal school code.
After you submit the FAFSA, you will receive a Student Aid Report (SAR) that summarizes your information. Your school uses this to determine your financial aid package. You may also need to complete additional applications for state or institutional grants.
Common Mistakes to Avoid
Missing the FAFSA deadline is the biggest mistake students make. Deadlines vary by state and school, so check them carefully. Another mistake is not reporting all income or assets, which can reduce your aid or cause delays.
Also, remember that grants are not free money if you withdraw from classes early or fail to meet requirements. You may have to repay a portion of the grant if you do not complete the term.
Actionable Tips for Getting Grants
- Submit the FAFSA as soon as it opens on October 1.
- Apply for state grants by their deadlines, which may be earlier than federal.
- Check with your college’s financial aid office for institutional grants.
- Search for private grants using free scholarship search tools.
Summary
Grants are a key part of paying for college because they do not need to be repaid. Start by filing the FAFSA early, explore all federal, state, and institutional options, and keep your information accurate. With careful planning, you can reduce your college costs significantly.
Frequently Asked Questions
What is a grant for college?
A grant for college is money you receive to help pay for your education that you do not have to repay, usually based on financial need.
How do I get a grant?
You get a grant by completing the FAFSA and meeting eligibility requirements, and some grants require additional applications.
Do I have to pay back a grant?
No, you do not have to pay back a grant as long as you meet the terms, such as staying enrolled and completing the period.
What is the difference between a grant and a scholarship?
A grant is usually based on financial need, while a scholarship is usually based on merit or other achievements, but both do not need to be repaid.
Can I lose a grant?
Yes, you can lose a grant if you drop below half-time enrollment, fail to maintain satisfactory academic progress, or do not meet other conditions.
