If you’re getting ready to continue your education after high school, you may be looking for support with affording tuition and fees. Grants are gifts of money available to students based on certain financial and personal factors.

What is a grant?

An education grant is a sum of money that a student receives to cover the cost of education. Most grants are awarded based on financial need and do not have to be repaid. Typically, grants are awarded for undergraduate education at a community college or four-year college or university, but in rare cases can be awarded to graduate students or students enrolled in career, trade or technical school.

Because a grant does not have to be repaid, it usually comes with the requirement that the money be used directly to cover the cost of education and may require that you enter a certain field of study during school. Often the grant provider pays the money directly to the institution, which lowers the student’s portion of the tuition bill.

Students typically receive grants from the federal government, private foundations, educational institutions and other institutions. Government grants are typically based on financial need. Other institutional grants can be awarded based on many factors, from cultural background to association memberships and more.

• Department of Education Federal Student Aid: studentaid.ed.gov
• FastWeb: www.fastweb.com

What are the types of grants?

There are two primary types of grants: needs-based grants and merit-based grants.

Needs-based grants

Needs-based grants are typically offered to students who are low or limited income and need help covering the cost of education. Federal needs-based grants come in two forms: the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). Both types of grants are awarded to low-income students whose household income falls below a certain level. Private needs-based grants are sometimes offered by states, educational institutions, nonprofits and foundations and other institutions.

Merit-based grants

Merit-based grants are typically awarded to students who performed well academically in high school. Private merit-based grants are sometimes offered by states, educational institutions, non-profits, private foundations and other institutions.

• Department of Education Federal Student Aid: studentaid.ed.gov
• FastWeb: www.fastweb.com

In addition to these needs- and merit-based grants, the federal government, state governments, academic institutions and private institutions also offer grants to support students focusing on specific academic subjects — such as teaching, science, math, engineering or specific foreign languages related to homeland security — or based on certain personal factors.

How do I apply for grants?

To apply for federal grants, you must complete the Free Application for Federal Student Aid (FAFSA). If you qualify to receive any federal grants, you will be notified of those grants on the financial aid award letter you receive from your academic institution. If you receive an award letter and do not see grants listed, you most likely did not qualify based on your income situation. If you have questions, you can contact the school’s financial aid department.

Different private grants have different applications and notification procedures, so check on the grant application to see how you will be notified.

• FAFSA: www.fafsa.ed.gov

Federal grant funds are awarded on a first-come, first-served basis, so be sure to submit your FAFSA application as early in the year as possible. Many grants require you maintain a certain academic grade and take a certain number of credits each semester in order to keep the grant. Make sure you read the details of the grant to understand all the policies — including whether you might be required to repay the grant if you leave school or if your grades drop.

Words to Know

Unsure about something you read? Many of the financial terms you came across in this article are defined in our financial glossary. A-Z Glossary

Links we like

Here are a few online resources you might find useful:

• FAFSA: www.fafsa.ed.gov
• Department of Education Federal Student Aid: studentaid.ed.gov
• FastWeb: www.fastweb.com