Unlike loans, grants are based on financial need. They are one of the best ways to make college more affordable. With so many grants available, you might wonder: What is the most common type of college grant?
Federal grants help millions of students every year. If you qualify, you could get thousands of dollars to pay for tuition, books, and other expenses without worrying about repayment.
Understanding your grant options and how they work is key to cutting down college costs. Whether you’re applying for financial aid for the first time or looking for extra funding, having the right information will put you ahead.
Key Takeaways
- The Pell Grant is the most common college grant awarded based on financial need.
- Grants are free money and usually don’t need to be repaid.
- FAFSA is required to apply for most grants.
- Grants can cover tuition, fees, and sometimes living expenses.
- You can receive multiple grants, but aid cannot exceed your cost of attendance.
- Apply early since some grants have limited funds.
How Do College Grants Work?
College grants are a form of free financial aid designed to help students cover education costs. Unlike loans, you don’t have to pay grants back, making them one of the best ways to reduce tuition expenses. They are usually awarded based on financial need, but some grants also consider factors like academic performance, field of study, or personal background.
Grants are offered by different sources, including:
- The Federal Government: The largest provider, offering grants like the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG).
- State Governments: Many states provide grants based on residency and financial need.
- Colleges and Universities: Schools often offer institutional grants to students who qualify for additional aid.
- Private Organizations: Nonprofits, companies, and foundations provide grants for students with specific backgrounds or career goals.
The Most Common Type of College Grant – Federal Pell Grant
When it comes to college grants, the Pell Grant is the most common and widely used. It’s a federal grant designed to help low-income undergraduate students afford college. Best of all, it does not have to be repaid. If you qualify, it can significantly lower your tuition costs.
Pell Grants are awarded based on financial need, not academic performance. The Free Application for Federal Student Aid (FAFSA) determines eligibility by assessing your Expected Family Contribution (EFC), household income, and school attendance cost for students in high-need fields.
To qualify for federal pell grants, you must:
- Be a U.S. citizen or eligible non-citizen
- Be enrolled in an eligible undergraduate program
- Have a high school diploma, GED, or equivalent
- Not already hold a bachelor’s degree
- Maintain satisfactory academic progress
The maximum Pell Grant award for the 2023-24 school year is $7,395 per year, but the actual amount you receive depends on several factors. Your financial need, the cost of tuition at your school, and whether you are enrolled full-time or part-time all play a role in determining your grant amount. Additionally, your award may be reduced accordingly if you attend only one semester instead of the full academic year.
Pell Grant funds go directly to your college or university to cover tuition, fees, and other school costs. If there’s money left over, you may receive a refund to help with books, housing, or transportation. However, each school has its own process for disbursing leftover funds.
Other Popular Types of Grants to Pay for College
While the Pell Grant is the most common, it’s not the only way to get free money for college or career school. Several other grants can help cover tuition, books, and living expenses. Some are awarded based on financial need, while others depend on state programs, school policies, or private funding.
Federal Supplemental Educational Opportunity Grants (FSEOG)
The FSEOG is a federal grant designed for students with exceptional financial need. Unlike the Pell Grant, which is guaranteed to eligible students, FSEOG funds are limited and awarded on a first-come, first-served basis.
The amount you receive depends on your financial need and the funding available at your college, which can help you pay for school, ranging from $100 to $4,000 per year. Because not every college participates in the FSEOG program, it’s important to check with your school’s financial aid office. Submitting your FAFSA as early as possible increases your chances of receiving this grant since funds run out quickly.
State-Sponsored Grants
Many states offer their own grant programs to help residents afford college. These grants are typically awarded based on financial need, but some states also consider academic merit, career interests, or minority status.
For example, California offers the Cal Grant, which covers tuition costs for students attending in-state colleges, while New York provides the Tuition Assistance Program (TAP) for eligible residents. Texas offers the Texas Grant, which helps in-state students with financial need pay for public colleges.
Each state has its own eligibility requirements, deadlines, and application process, so it’s essential to check with your state’s higher education department or financial aid office to find out what’s available.
Institutional Grants from Colleges
Many colleges and universities offer institutional grants to help students manage tuition costs. These grants may be awarded based on financial need, academic excellence, or special talents. Some colleges automatically consider students for institutional grants when they submit their FAFSA or CSS Profile, while others require a separate application.
Private universities, including Ivy League schools, often provide large need-based grants to make tuition more affordable. Institutions like Harvard, Yale, and Stanford offer financial aid programs that allow low-income students to attend tuition-free or at a significantly reduced cost.
Public universities also offer grants, though the availability and amounts vary by school. Checking with your college’s financial aid office is the best way to learn about institutional grants that may be available to you.
Private and Nonprofit Grants
Many private organizations, foundations, and nonprofits offer grants to students who meet specific criteria. Unlike federal and state grants, private grants often target students based on academic performance, field of study, ethnicity, leadership, or community involvement.
Programs like The Gates Millennium Scholars Program provide grants for minority students with financial need, while the Coca-Cola Scholars Foundation awards funding to high-achieving students. The Dell Scholars Program helps first-generation college students afford tuition and living expenses.
Unlike federal grants, private grants often require a separate application, essay, or interview, making it important to research and apply early for assistance for college and higher education.
How to Find and Apply for Financial Aid
Grants come from various sources, including the federal government, state programs, colleges, and private organizations. You need to create a clear financial plan to get the most out of these grants. This starts by knowing where to look and how to apply can greatly affect how much financial aid you receive.
Step 1: Start with the FAFSA
The Free Application for Federal Student Aid (FAFSA) is the gateway to most grants. It determines your eligibility for federal grants like the Pell Grant and FSEOG, as well as state and institutional grants. Many schools also use FAFSA data to award their own financial aid.
Submitting your FAFSA as early as possible is crucial since some grants are awarded on a first-come, first-served basis. The application opens on October 1st each year and you should make sure to fill out the free application on time. Missing out on the deadlines could mean losing out on valuable aid.
Step 2: Check State Grant Programs
Every state offers its own grant programs for residents, often based on financial need or academic achievement, which are vital types of financial aid. Some state grants cover tuition at public colleges, while others provide additional funding for private schools.
To find out what’s available, visit your state’s higher education website or contact your school’s financial aid office. Keep in mind that state grant deadlines vary, and some programs run out of funds quickly.
Step 3: Explore College and Institutional Grants
Many colleges offer need-based and merit-based grants to help students afford tuition. These grants may be automatically awarded when you submit your FAFSA, but some schools require a separate application to determine if you are eligible for a Pell Grant.
If you are considering a specific college, check their financial aid page to see what grants they offer. Some top universities, including Harvard, Stanford, and Yale, provide large need-based grants that significantly reduce tuition costs for eligible students.
Step 4: Look for Private and Nonprofit Grants
Private organizations, companies, and nonprofit groups offer millions of dollars in student grants each year to support higher education. These grants may be based on factors like academic performance, career goals, ethnicity, or community service.
Websites like Fastweb and Scholarships.com have databases where you can search for grants that match your background and interests. Many private grants require an application, essay, or letters of recommendation, so give yourself enough time to apply.
Step 5: Stay Organized and Apply Early
Stay on top of deadlines and requirements to maximize your chances of getting grants. Create a checklist of grants you are eligible for, keep track of application deadlines, and gather necessary documents like FAFSA confirmation, tax returns, and recommendation letters. Applying early increases your chances and ensures you do not miss out on limited funding.
Do You Have to Pay Back College Grants?
One of the biggest advantages of college grants is that you don’t have to pay them back, making them a preferred form of student financial aid. Unlike student loans, which come with interest and repayment terms. Grants are essentially free money awarded to help you cover college expenses. However, there are certain situations where you might have to repay a grant.
While grants are designed to be non-repayable, you may have to return part or all of your grant if:
- You withdraw from school early: If you drop out before completing the semester, you might have to repay the unused portion of your grant. The school calculates how much of the grant you have “earned” based on the time you were enrolled.
- Your enrollment status changes: Grants are often awarded based on full-time enrollment. If you switch to part-time, your eligibility may decrease, and you could be required to return the extra funds.
- You receive additional financial aid: Some federal grant programs are based on financial need. If you receive other aid, like scholarships or work-study, your total aid package might exceed your cost of college, and a portion of your grant may need to be repaid.
- You fail to meet academic progress requirements: Many grants, including the Pell Grant, require students to maintain satisfactory academic progress (SAP). This means keeping a minimum GPA and completing enough credits each semester to maintain eligibility for state college grants. Falling below the requirements could result in losing the grant and having to repay some funds.
Conclusion
College grants are one of the best ways to make higher education more affordable. The Pell Grant is the most common, helping millions of students cover yearly tuition and expenses. But it’s not the only option—federal, state, institutional, and private grants can all provide additional financial support.
About College Journey
Paying for college can be challenging, but College Journey is here to help you easily navigate the financial aid process. With Alice, your AI-powered college counselor, you will get clear, step-by-step guidance on securing grants, scholarships, and other funding options to reduce college costs.
Whether you need help understanding grant eligibility, maximizing financial aid, or finding additional funding opportunities, Alice provides expert advice tailored to your needs. From personalized recommendations and college comparisons to tools that track your progress, College Journey ensures you stay informed and confident throughout your college journey.
Getting the financial support you need shouldn’t be stressful. Let Alice guide you every step of the way—and the best part? It’s completely free to sign up!
FAQ
Can I receive multiple grants at the same time?
You can qualify for multiple federal, state, institutional, and private grants, expanding your options for financial assistance for college and higher education. However, your total aid cannot exceed your school’s cost of attendance.
Do college grants cover living expenses?
Some grants can be used for living expenses, including housing, food, and transportation. If your grant exceeds your tuition and fees, your school may refund the remaining amount to you.
Are there grants for graduate students?
Yes, while most grants focus on undergraduates, some, like the TEACH Grant and state-based programs, offer funding for graduate students pursuing specific careers.
Can undocumented students qualify for college grants?
It depends on the grant. Federal grants require U.S. citizenship or eligible non-citizen status, but some state and private grants are available to undocumented students, including DACA recipients.
How often do I need to apply for grants?
Most grants, including the Pell Grant, require you to reapply every year by submitting the FAFSA or other financial aid forms. Private and institutional grants may have different renewal requirements.
