You can make your education more affordable with grants and scholarships, but what is a grant? And how do they differ from scholarships?
What Is a Grant?
A grant is a form of financial aid awarded to students based on their family’s economic situation.
Grants are typically awarded on a first come, first serve basis. The Free Application for Federal Student Aid (FAFSA) determines what grants you qualify for, so it’s important to fill out your FAFSA form as soon as the application opens.
Types of Grants for College
Most grants come from the federal government.
Examples include Pell grants, which go to undergraduate students, and TEACH grants, for education majors.
Other sources of funding include:
- State grants: Students who attend college where they reside may be eligible to receive a grant through their state government.
- Private grants: Private organizations, nonprofits, and foundations can award students grants. They usually target specific demographics and fields of study.
- Institutional grants: Colleges and universities offer their own grants to incoming and current students.
What Is the Difference Between a Grant and a Scholarship?
You don’t need to meet a certain GPA or other academic requirements to receive a grant. The amount gifted is tied to income.
Scholarships meanwhile are based on merit – or your ability – such as:
- Your grades
- Athletics
- Demographic information, including race, ethnicity, and gender
- Your major
Neither grants nor scholarships need to be paid back.
