Why College Grants Make Sense for All Students
Grants are similar to scholarships in that they are free financial aid that you are not required to repay. But that’s where the similarities end.
Federal and state governments commonly fund student grants, which are typically based on a variety of metrics, including economic need, ability to pay, student status and academic requirements. Grants are often not exclusively based on your family’s income.
Types of College Grants
Two general types of grant programs stand out for college students:
- Need-based grants
- Merit-based grants
Federal Grants
The federal government is one of the largest providers of student grants. In order to qualify you must file a Free Application for Federal Student Aid (FAFSA) annually.
- The most common federal grant is the Federal Pell Grant. The Pell Grant is funded by the federal government and designed to provide financially disadvantaged undergraduate students with financial assistance. The amount you receive each year may change depending on federal budget restrictions, your family’s expected cost contribution, and your student status.
- The Federal Supplemental Education Opportunity Grant program or (FSEOG) is a type of government grant awarded only to students with the most need. This is typically awarded to students that have an Expected Family Contribution (EFC) or 0 on their financial aid Student Aid Report (SAR). Once students with the most need have been provided funding, remaining federal FSEOG funds “trickle down” to provide assistance to students with the next greatest level of need.
- Federally-funded work-study programs provide financially needy students with on-campus job opportunities, which let students earn money toward their college expenses.
- The military Montgomery G.I. Bill is one of the oldest federal educational benefit assistance programs. Students that have served in the military may qualify for a certain amount of federal funding for a college education or vocational and technical training.
Merit-Based Grants
Merit-based grants provide free college funds to students based on academic performance and, sometimes in combination with financial need. The most common types of merit-based grants are state-based grants, which award students with certain GPAs and income levels money for their college education. State grants usually require a separate application form, but may also require you have completed and filed the FAFSA. Most state-based grants may be found directly on your home state’s government or higher education website.
How to Apply for College Grants
Most types of grant programs also require you to file a FAFSA, so make this the first application you fill out. By filing the FAFSA you already are considered for any federal grants. Remember to submit by the federal and state FAFSA deadlines.
Applications for state grants are different from and in addition to the FAFSA. Your state government provides applications for specific grants. Also be aware that some programs will also require extra forms of documentation, such as academic transcripts, in order to qualify.
Make sure you are considered for grant money: complete the FAFSA as well as explore your options for state-based aid. Also, check with your college or university for any grant programs they may offer.
http://www.gocollege.com/financial-aid/college-grants/
