What Are College Grants?

College grants are need-based awards that help students pay for higher education. Unlike loans, qualifying grants do not have to be repaid as long as the student meets the program's requirements through to the end of the award year. Grants come from three main places: the federal government, state governments, and the colleges and universities themselves.

Federal grants

The largest federal college grant is the Pell Grant, which goes to undergraduate students with significant financial need. Other federal grants include the Federal Supplemental Educational Opportunity Grant (FSEOG), the TEACH Grant for students preparing to teach in high-need fields, and Iraq and Afghanistan Service Grants for eligible children of military service members. Federal grant eligibility runs through the FAFSA.

State and institutional grants

Most states offer their own grant programs through a state higher education agency. Some are need-based; others reward in-state students, academic achievement, or service commitments. The FAFSA is usually the starting point here too, though some states have additional forms.

Colleges and universities also award their own grants from institutional funds. These are typically need-based and decided by the school's financial aid office once you have been admitted. Selective private colleges in particular often have significant institutional grant aid for students who qualify.

How to apply

The FAFSA is the single most important step for federal and most state and institutional grants. It is available at studentaid.gov and is free to file. File as early as you can each year, because some grant funds are limited and awarded on a first-come, first-served basis.

You do not separately accept each grant. Once your FAFSA is processed, your school packages the grants you qualify for into a financial aid offer along with any loans and work-study you are eligible for. You then choose which parts of the offer to accept.

Official sources

• Federal student aid: studentaid.gov
• State grant programs: contact your state's higher education agency
• Your college's financial aid office for institutional grants

Filing the FAFSA is always free. Anyone who charges a fee to file your FAFSA or "guarantees" a grant is not affiliated with the federal program. GovernmentGrants.com is not affiliated with the U.S. Department of Education.