Basics of College Grants
2 min read
Key takeaways
- Grants are gift aid. In most cases you don't pay them back.
- Most federal, state and college grants start with the FAFSA.
- Read the fine print, meet every deadline and keep your grades up.
Grants are money awarded to help students pay for college. They come from the federal government, state governments, colleges and private organizations, and you get them by applying when they're available.
Most grants are awarded based on financial need. Scholarships are similar, but they're usually awarded for other reasons, such as grades, talent or community involvement.
Who offers college grants
The federal and state governments fund most grant programs with tax money. When they decide who receives a grant, they look at each student's financial need.
Income isn't the only factor, though. Each program sets its own standards, and your application has to meet them. Colleges and private groups offer grants too, often with their own rules.
Start with the FAFSA
The Free Application for Federal Student Aid (FAFSA) is the most useful tool for finding grant money. It's free, it's open to students across the country, and most federal, state and college aid programs use it to decide what you qualify for.
Fill it out early and give yourself plenty of time to fix any mistakes. Your FAFSA also decides whether you can get federal student loans, so it's worth completing even if you don't expect a grant.
Read the fine print
Before you apply, read each grant's requirements carefully. Some are only for certain fields of study, some require you to enroll at least half-time, and some must be renewed every year.
Tailor each application to the grant you're applying for, and make sure it shows how you meet that program's standards.
Stay competitive
Grant money is limited, and the competition for it starts early. To give yourself the best chance:
- Keep your GPA up, since many grants have minimum grade requirements.
- Check every application before you send it, and fill in anything that's missing.
- Note each deadline, including state deadlines that may be earlier than the federal one.
Cover the gap with student loans
Grants and scholarships rarely cover the whole cost of college. Request as much in student loans as you need to pay for your college tuition, and keep your GPA up while you apply for grants.
Make a plan
College grants are valuable, and the sooner you start, the more options you'll have. Do your research, list the grants you may qualify for, and make a plan for applying to each one.
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Questions people ask
Do college grants have to be paid back?
Usually not. Grants are gift aid. You may have to repay part of a grant if you withdraw from school or drop below the enrollment level the grant requires.
What's the difference between a grant and a scholarship?
Both are money for college that you don't repay. Grants are usually based on financial need, while scholarships are more often based on merit, such as grades, talent or activities.
Do I need to fill out the FAFSA every year?
Yes. Federal aid, and most state and school aid, is awarded one year at a time, so you submit a new FAFSA for each school year.
Sources
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