Institutional, State and Merit Based Grants
2 min read
Key takeaways
- Grants can help pay for tuition, housing and books.
- The FAFSA is the starting point for most state and college grants.
- Each program has its own rules, so check the requirements early.
Students who research grants early often find more financial aid than they expected. Like student loans, grants are paid out for school costs. Unlike loans, you usually don't have to pay them back.
Grants can help pay for tuition, student housing and books, which lowers the overall cost of college. That's why many students apply for several grants at once.
Here are three types worth knowing about.
Institutional grants
Many colleges and universities offer their own financial aid. These programs are meant to close the gap between what college costs and what a family can afford to pay. The tuition a school charges can affect how much aid it gives.
Some institutional grants are based on financial need. Others are tied to academic performance.
To be considered, take an active part: check your school's financial aid website, meet its deadlines, and ask the financial aid office what's available.
State grants
Most states run grant programs to help residents pay for college. In many states, submitting the FAFSA is the first step, and you may be considered for state grants automatically. Some states also ask for a separate application.
Each state sets its own rules, and some award money until it runs out, so apply early. Note every requirement, follow it closely, and keep meeting it for as long as you receive the grant.
Merit-based grants
Merit-based grants reward achievement, such as strong grades, test scores or special talents. They're fairly common, and they don't always depend on financial need.
Eligibility rules differ from program to program, and many states and schools run their own. Requirements can be strict, so review them carefully. Parents, teachers and school counselors can help you find programs that fit and check that you qualify.
Keep your grants
Getting a grant is only the first step. Most come with conditions, such as a minimum GPA or full-time enrollment. Keep track of the requirements for each grant so you don't lose it in later years.
Get exclusive grant and scholarship resources, sent to your inbox.
Questions people ask
What is an institutional grant?
It's a grant your college or university pays from its own funds. Schools use them to help students whose families can't cover the full cost of attending.
How do I apply for state grants?
In most states, you start by submitting the FAFSA. Some states also have their own application. Check your state's higher education agency website for deadlines and rules.
Can I get more than one grant?
Yes. Many students combine federal, state, college and private grants. Your total aid usually can't be more than your school's cost of attendance.
Sources
* We may earn a commission from links on this page. This doesn't change what we write. How we make money
