What is a College Grant?

College can be expensive, and student loan debt is a major concern for many graduates. But there is good news! Grant aid can significantly reduce the financial burden of higher education.

Grants are essentially free money awarded to students based on financial need or sometimes merit. Unlike loans, they don’t need to be repaid. By understanding the grant system and how to apply, you can graduate with less debt and a brighter financial future. In 2018 alone, US undergraduates received nearly $110 billion in grant aid, with colleges and universities themselves being the biggest source with 44% of all grant aid.

This blog will provide you with everything you need to know about college grants. We’ll discuss eligibility criteria, application processes, and the key differences between grants, loans, and scholarships (both need-based and merit-based)

What is a College Grant?

College grants are essentially free money awarded to eligible students to help cover tuition and other educational expenses. These grants can come from a variety of sources, including the federal government, state governments, colleges themselves, and even private foundations.

The amount of money awarded, the eligibility requirements, and the application process for each grant will vary depending on the source. For instance, federal grants like the Pell Grant are awarded based on financial need, as determined by the Free Application for Federal Student Aid (FAFSA) application.

Many colleges and universities also consider a student’s FAFSA information when awarding their own institutional grants. Additionally, some colleges may require further information through their own financial aid forms or the College Scholarship Service (CSS) Profile, administered by the College Board. Some states may even have their own versions of the FAFSA to determine eligibility for state-funded grants.

Financial need is a major factor in awarding many grants, but it’s not the only one. Merit-based grants are awarded to students who show exceptional academic achievement, talent in a particular field, or other forms of merit. For example, many grants specifically designated for military members and veterans don’t require proof of financial need.

College Grants vs. Scholarships vs. Loans

College grants, scholarships, and loans are all forms of financial aid that can help you pay for college, but they differ crucially in how you receive and repay the money. Grants and scholarships are considered “gift aid,” meaning they don’t need to be repaid as long as you meet certain criteria.

Grants are typically awarded based on financial need, with the federal Pell Grant being a well-known example. Scholarships, on the other hand, are awarded based on merits such as academic achievement, athletic talent, or involvement in a specific field of study.

In contrast, student loans are borrowed money that you must repay with interest, typically starting after graduation. While loans offer more flexibility in how much you can borrow, the burden of repayment can be significant. They are a good option to fill the gap after exhausting grant and scholarship opportunities but they should be approached with caution.

What are the Most Common College Grants?

Millions of college students in the nation rely on grants to finance their education. This section explores the different types of grants available, how to qualify, and where to find more information.

Federal grants

The U.S. Department of Education distributes four main types of federal grants:

• Pell Grant: The largest federal grant program, awarding up to $6,495 (for the 2021–22 academic year) to undergraduates with exceptional financial need. Students can qualify by filling out the FAFSA annually and can receive funding for up to six years.

• Federal Supplemental Educational Opportunity Grant (FSEOG): Available to undergraduates with the greatest financial need, on top of Pell Grants, providing up to $4,000 per year. Each school distributes this grant money.

• Teacher Education Assistance for College and Higher Education (TEACH) Grant: Up to $4,000 per year for students pursuing teaching degrees. Unlike Pell Grants, graduate students can qualify. TEACH Grants require recipients to work in a low-income school for four years within eight years of graduation or repay the grant as a loan.

State grants

In addition to federal aid, many states offer grants to residents attending college. These grants have varying requirements, but most involve residency and financial need. Students can typically find information and apply through their state’s education department. Here are a few examples:

• California Cal Grant: Supports students attending in-state public colleges or qualifying independent schools.

• Ohio College Opportunity Grant: For undergraduates meeting income requirements to attend an Ohio or Pennsylvania college.

• Massachusetts Public Service Grant: Covers tuition for dependents of public servants killed in the line of duty.

Institutional grants

Many colleges and universities offer their own grant programs to attract and retain students. According to the Urban Institute, around 40% of undergraduate grant aid comes from colleges themselves. The amount and type of institutional grants vary greatly depending on the school. Generally, private institutions offer more grant aid than public ones. Each school administers its own grant program through its financial aid office.

Application Process for College Grants

Unlike scholarships, which often require separate applications, grants are typically awarded based on factors like financial need or merit through the college application process.  Schools consider a student’s application for admission and financial aid together, using information like grades, test scores, and the FAFSA to determine eligibility for institutional grants. These grants are offered by colleges and universities to attract top students and help them manage their educational expenses.

The FAFSA is a crucial step in qualifying for federal, state, and institutional grants. Millions of students fill out the FAFSA annually, and the information provided determines their eligibility for grant aid. By completing this single application each year, undergraduates can be considered for thousands of dollars in grant money to help finance their college education.

Filling out the FAFSA is essential for maximizing financial aid opportunities. In 2018 alone, high school seniors missed out on an estimated $2.6 billion in grant funding simply by neglecting to complete the FAFSA. Don’t let this free money slip away—make sure to submit the FAFSA each year you’re in college.

Renewal of College Grants

Understanding if your grant is renewable is crucial when sorting through financial aid as a student. While many merit-based grants renew automatically, need-based awards often come with specific requirements you need to meet each year to stay eligible.

These requirements typically involve maintaining at least half-time enrollment, achieving a minimum GPA as set by your program, showing consistent progress toward your degree according to departmental guidelines, and maintaining a similar financial need level compared to when you initially received the award.

Furthermore, renewing need-based grants often requires students to submit a new application each year. For returning students at private universities, these deadlines usually fall around late February or early March.

5 Tips to Maximize College Grant Opportunities

By following these tips, you’ll be well on your way to maximizing your college grant opportunities. Every grant you receive translates to less debt and more freedom to focus on your studies.

1. FAFSA is your friend

The FAFSA is your key to both federal and institutional grant money. Fill it out early and accurately each year you’re in college. Many colleges use the FAFSA information to determine eligibility for their own grant programs.

2. Go local, go big

Local community organizations, businesses, and even high schools often offer awards specifically for their residents or graduating students. Research local opportunities—the competition might be smaller, boosting your chances of winning.

3. Cast a wide net

Don’t just focus on the national grants. Explore scholarship and grant databases offered by your state government, colleges you’re interested in, and professional or community organizations related to your field of study. The more applications you submit, the higher your chances of landing a grant.

4. Highlight your hustle

Many grants reward not just academic achievement but also community service, extracurricular involvement, or unique talents. Show your well-roundedness in essays and applications. If you’ve volunteered extensively or have a noteworthy hobby, highlight it!

5. Meet the deadlines

Grant applications often have strict deadlines. Set calendar reminders and prioritize completing applications well in advance. Don’t miss out on free money because of a late submission!

From the Desk of Yocket

College grants alleviate the financial burden that can often act as a barrier to obtaining a degree. Grants provide a path for talented and driven students to focus on their studies without worrying about debt. This can lead to better academic performance and a smoother transition into the workforce.

Furthermore, college grants can promote diversity and inclusion in higher education. Grants targeted toward underrepresented groups can help level the playing field and ensure that a socioeconomic background doesn’t hinder a student’s potential. By providing financial aid to a wider range of students, colleges and universities can benefit from a richer mix of experiences and perspectives in their classrooms.

However, there are also limitations to consider. Grant funding can be limited, and not all students who qualify will receive the full amount they need. This can leave a gap that needs to be filled with loans or work, which can add pressure and take time away from studies. Additionally, the application process for grants can be complex and time-consuming, potentially discouraging some students from applying.

Frequently Asked Questions

What is a college grant?

A college grant is essentially free money awarded to students to help cover college costs. Unlike student loans, grants don’t need to be repaid. Grants are offered by various organizations, including the federal government, state agencies, colleges themselves, and even private foundations.

Who is eligible for college grants?

Eligibility requirements for college grants vary depending on the specific grant. However, some general factors considered include financial need, academic merit, a specific area of study, and sometimes even demographic background.

Are there any college grant deadlines?

Absolutely! Grant deadlines vary widely. Some deadlines are tied to FAFSA submission, while others may have earlier or later deadlines. It’s important to research and meet the deadlines for grants you’re interested in.

Are there different types of college grants?

Yes, there are federal grants, state grants, institutional grants, and private grants. Each has its own eligibility requirements and award amounts.