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- Grants for college don't need to be repaid after graduation.
- If you receive a college grant, it can significantly affect your financial future for the better.
- Students can get college grants from many sources, including federal and state programs.
What are grants?
The costs of college can add up quickly. Many turn to student loans, with the average student borrowing over $30,000 to pursue an undergraduate degree, according to the Education Data Initiative.
But college grants offer another solution to help pay for school. College grants are funds that you don't have to repay after graduation.
When it comes to paying for college, free money is rarely a bad option. If you are eligible for a grant, taking advantage of that opportunity can help you lower the cost of getting your degree. However, it's important to read the fine print before accepting a college grant.
In some situations, you may end up having to repay your grant funds. For example, if you withdraw from a program or you switch to part-time student status, you could be required to repay your federal grants. Not meeting your teaching service obligations after accepting a TEACH grant is another example when you might have to repay federal grant funds.
Types of grants
Federal pell grants
Pell grants, the most popular education grant, are awarded to undergraduate students with a demonstrated financial need, with up to 12 semesters of eligibility.
Federal supplemental educational opportunity grants (FSEOG)
The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to students with exceptional financial need at qualifying schools.
State grants
Many states offer grants to students pursuing higher education. It's worth checking to see if your state offers grant opportunities.
College-specific grants
Some colleges and universities offer grant opportunities to cover educational costs. Ask your school's financial aid office to see if you qualify for school-specific grants.
Private grants
Some organizations offer grant funding to students. In general, you have to apply for this type of grant and meet specific eligibility requirements.
TEACH grants
Teacher Education Assistance for College and Higher Education (TEACH) grants are available to students enrolled in programs designed to prepare them for teaching at the elementary or secondary school level. The catch is that grant recipients must agree to teach full-time for at least four years in a school that serves low-income students. If you don't uphold the commitment, you'll have to repay the funds.
Specialized grants
Students can also find grants focused on specific fields of study and demographics. For example, you might find a grant opportunity based on your science, technology, engineering, or mathematics (STEM) major, or your religious faith background. Do some digging to find any specialized grant opportunities you might qualify for.
How to find and apply for grants
If you've decided you want to pursue grants to cover some of your college costs, it's time to apply. As you run through these applications, make sure to complete and file them on time. Many grant programs are unable to accept applications past the posted deadline.
In some cases, you'll also have to submit a grant essay. You can make a good impression through your essay by being authentic and engaging the reader in your story. It's usually a good idea to have people you trust read through your essay to offer feedback.
Finally, some grants require letters of recommendation. Consider procuring these from someone with whom you have a good working relationship. For example, you might ask a teacher you've worked with on big projects, or a coach who knows you well. Regardless of who you choose, ask them at least one month before the deadline to give them the time they need.
Start with the FAFSA
Start by submitting the FAFSA. If your state offers any grant opportunities, you'll probably need to submit paperwork to apply. Some of the documents you might need to submit with your grant application include household tax returns, household W-2 forms, Social Security number, high school transcripts, and letters of recommendation.
Search online databases
College grants are available from multiple entities. In general, it's a good idea to start by throwing your hat into the ring for federal college grants. Next, research state-level grant programs available to students in your area.
Check out Business Insider's picks for the best scholarship websites to find even more potential school funding that you will not have to repay beyond college grants.
Contact your school's financial aid office
You can reach out to your future college to uncover any school-level grant options and ask about grants dedicated to helping students in your particular field of study.
College grant FAQs
Can I get grants even if my parents make a lot of money?
Whether or not you're eligible to receive grants depends on the grant. Most grants are need-based, but some are awarded based on merit or other criteria.
How much money can I get from grants?
How much you get from a grant will depend on your financial need, the type of grant, and the cost of attendance at your school.
When is the best time to apply for grants?
The best time to apply for grants is as early as possible! Many grants have limited funds and are awarded on a first-come, first-served basis.
Do I have to pay taxes on grants?
Generally, you do not need to pay taxes on grants, as long as the grant is used for qualified educational expenses (tuition, fees, books, etc.).
Sarah Sharkey is a personal finance writer who enjoys helping people make better financial decisions. Sarah enjoys traveling, hiking and reading when she is not writing. You can connect with her on her blogAdventurous Adulting.
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