Grants for college: How they work and where to get them
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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.
The costs of college can add up quickly. Many students turn to 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.
Types of college grants available
College grants can translate into free money for school. The good news is that you can find many different types of college grants. Take a closer look at some of the most popular grant opportunities below.
- Federal Pell grants: Pell grants are awarded to undergraduate students with a demonstrated financial need, with up to 12 semesters of eligibility.
- FSEOG: The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to students with exceptional financial need at qualifying schools.
- 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.
- State grants: Many states offer grants to students pursuing higher education. It's worth checking to see if your state offers grant opportunities.
- Institutional 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.
- 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.
Should I use grants for college?
"Students should use grants for college because it is free money that you don't have to pay back,"Joe Orsolini, president of College Aid Planners. "The more grant money you get, the less you may need to borrow."
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.
How to find college grants
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. You can do this by filling out the FAFSA (Free Application for Federal Student Aid).
Next, research state-level grant programs available to students in your area. Additionally, 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.
Be sure not to overlook local grant opportunities.
"Beyond your college system, the best place to look for grants is locally as these offer the best odds of receiving them," says Orsolini. Some local grant opportunities might be available through your local Chamber of Commerce, service organizations, unions, or professional groups.
Orsolini recommends looking at your high school's resources for these opportunities because these organizations typically notify the local high schools.
How to apply for college 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.
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.
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.
College grants FAQs
Can I apply for college grants if I have a high income?
It never hurts to apply for college grants, even if you have a high income. Some grants are based on your demographics or field of study, which won't be affected by your high income.
Are college grants only for undergraduates?
No, college grants are not only for undergraduates. Some grants are available to both undergraduates and graduate students.
Do I have to repay a grant for college?
In general, you don't have to repay a grant for college. However, there are some exceptions. For example, you may have to repay a TEACH grant if you don't uphold the teaching commitment.
Can I receive multiple college grants at once?
Yes, it's possible to receive multiple college grants at once.
Do I need good grades to qualify for college grants?
Many college grants are based on your financial need, field of study, or demographics. With that, you may not need good grades to qualify for college grants.
Are college grants taxable income?
If you use the funds from a college grant to cover your tuition, fees, or other educational expenses, then you won't have to pay taxes on the funds. But if you use the grant funds to cover room, board, travel, or anything else, the funds may be taxable.