College grants: What are they?

How college grants work

College grants give you money for school that you usually don’t have to repay. They can lower the amount you need to cover with savings, income, or student loans.

Grants may come from the federal government, your state, your college, or a private or nonprofit organization. Federal grants are generally based on financial need or specific program requirements. State and school grants may consider financial need, academic performance, residency, your major, or other qualifications.

Some grants come with conditions. You may have to repay all or part of a grant if you:

• Withdraw from school early
• Change your enrollment status
• Receive more aid than you’re eligible for
• Don’t complete a required service obligation, such as the teaching service required for a TEACH Grant

What can college grants pay for?

College grants can help cover more than tuition. Depending on the program and your school’s rules, grant money may help pay for education expenses included in your cost of attendance.

Those costs may include:

• Tuition and required fees
• Books, course materials, and supplies
• Housing and meals
• Transportation to and from school
• A laptop or other school-related technology
• Other school-approved education expenses

Your school will usually apply grant money to charges on your student account first, such as tuition, fees, and campus housing. If money remains, the school may pay the balance to you for other approved costs.

Ask your financial aid office how and when your funds will be paid and which expenses your grant allows.

Who qualifies for college grants?

College grant eligibility depends on the program, so there isn’t one income, GPA, or enrollment rule that applies to every grant. Each grant sets its own requirements. Your eligibility may be based on:

• Your financial need
• Information from your FAFSA^®
• Your Student Aid Index
• Full-time or part-time enrollment
• Undergraduate, graduate, or certificate-program enrollment
• State residency
• Satisfactory academic progress
• Your major or career plans
• A service commitment
• Federal student aid eligibility requirements

Apply even when you’re unsure

Many families count themselves out too soon. Sallie’s “Financial Aid Myth Report” found that 41% believed a household income above $100,000 disqualified a student from any financial aid. It also found that 29% skipped applying for federal aid, specifically Pell Grants and federal student loans, because they assumed they wouldn’t qualify.

In reality, your income alone doesn’t tell you whether you’ll receive a grant. Sallie Mae’s “How America Pays for College 2025” found that 69% of undergraduate families earning less than $50,000 used grants during the 2024-25 academic year. Grants were also used by 35% of families earning $150,000 or more.

There’s no income cap for submitting the FAFSA^®. Completing it gives your schools the information they need to determine which federal, state, and school aid you may receive.

How much grant money can I get?

The amount of college grant money you can receive depends on the program, your eligibility, your enrollment, available funding, and your school’s cost of attendance. Some federal grants have published annual amounts, while state and school awards vary.

Sallie Mae’s “How America Pays for College 2025” found that 57% of undergraduate families used grants during the 2024-25 academic year. Among families using grants, the average amount was $6,180.

These are maximums or program ranges provided by Federal Student Aid, not guaranteed award amounts. Your financial aid offer will show how much your school has awarded you.

Types of college grants

College grants are often grouped by who provides the money: the federal government, your state, your college, or another organization. Checking every source can help you find more opportunities.

Federal college grants

Federal grants are provided by the U.S. government. You generally need to submit the FAFSA^® to be considered.

Federal Pell Grants are primarily for eligible undergraduate students with financial need. Your amount can depend on your FAFSA^® information, Student Aid Index, enrollment intensity, cost of attendace, and attendance plans for the year.

Federal Student Aid has not yet announced the maximum and minimum Pell Grant amounts for 2027-28. According to Federal Student Aid, for 2026-27, the maximum scheduled award is $7,395, and the minimum scheduled award is $740. Your school will determine your final eligibility and award amount.

Federal Supplemental Educational Opportunity Grants, or FSEOGs, are for undergraduate students with exceptional financial need. Participating schools receive a limited amount of FSEOG funding, so funds may run out. Students who will receive Pell Grants and have the greatest financial need receive priority.

TEACH Grants are available to eligible undergraduate, postbaccalaureate, and graduate students enrolled in participating teaching programs. You must complete a teaching service obligation after school. If you don’t meet the requirements, the grant can become a federal Direct Unsubsidized Loan that you’ll need to repay with interest.

State grants for college

State grants are funded or administered by a state and usually help residents of that state attend eligible colleges. Eligibility is generally based on your state of legal residence, and many programs also require you to attend an eligible school in that state. Some programs allow approved out-of-state schools or have reciprocity agreements, so check your state’s requirements. State grants may be based on:

• Financial need
• Legal residency in the state offering the grant
• Academic performance
• Enrollment at an eligible school
• A high-demand field or career
• Military service or another personal circumstance

Many states use your FAFSA^® information, while some require an additional state application. Check federal deadlines and your state financial aid agency for application requirements and priority dates.

State deadlines may arrive well before the federal FAFSA^® deadline, so check them early.

Grants from colleges and universities

College grants are awarded directly by a school. They may be based on financial need, academic performance, your program, or other priorities set by the college.

Schools may use your FAFSA^® information along with a school-specific form. Ask every college on your list:

• Which financial aid forms do I need to submit?
• What is the priority deadline?
• Is the grant offered for one year or multiple years?
• Is it renewable?
• Will the amount remain the same each year?
• Are there GPA, enrollment, major, or residency requirements?

A college with a higher advertised price may offer more grants and scholarships, so compare what you may pay after aid instead of looking at tuition alone. As you build your college list, you can use Scout College Search to explore schools based on location, majors, extracurriculars, and more, then check each school’s financial aid page for grant requirements, application forms, and deadlines.

Private and nonprofit grants

Private and nonprofit organizations may also offer grants for college. These programs usually have their own applications, qualifications, and deadlines. You can look for opportunities through:

• Community organizations and foundations
• Professional groups related to your career interests
• Cultural, religious, or civic organizations
• Employers
• Your high school or college financial aid office

Some organizations may call their award a scholarship rather than a grant. Search for both terms so you don’t miss possible funding.

Differences between grants for college and scholarships

Grants and scholarships both give you money for school that generally doesn’t need to be repaid. Grants are more often based on financial need, while certain types of scholarships may consider need, grades, talents, activities, background, service, or career goals.

You can receive grants and scholarships at the same time. Tell your financial aid office about outside awards so the school can update your aid package if needed.

Keep applying for scholarships after you enroll. Scholly® Scholarships can help you search and sort through thousands of opportunities, and Sallie’s $2,000 No Essay Scholarship takes two minutes or less to enter.

How to get grants for college

The best way to get grants for college is to complete every required application and check federal, state, school, and private sources. Starting early gives you more time to meet different deadlines.

1. Fill out the FAFSA^®

The Free Application for Federal Student Aid, or FAFSA^®, is used to determine your eligibility for federal grants, work-study, and federal student loans. States and colleges may also use your information when awarding their own aid.

2. Check every deadline

According to Federal Student Aid, the 2027–28 FAFSA® is scheduled expected to open by October 1, 2026, and the federal deadline is expected to be June 30, 2028, but state and school deadlines may be much earlier, so be sure to check:

• The federal FAFSA^® deadline
• Your state’s financial aid deadline
• Each college’s priority deadline
• Deadlines for any separate grant applications

Some state, school, and campus-based programs have limited funds. Submit your applications as early as you can.

3. Complete any state and school applications

The FAFSA^® may not be the only form you need. A state or college may ask you to complete an additional application for its grants.

Visit the financial aid page for every college you’re considering and contact the financial aid office when the requirements aren’t clear.

4. Look beyond federal aid

Federal grants are one part of the funding picture. Check state programs, grants from your college, and awards from private or nonprofit organizations.

Keep a list of deadlines and required materials. Smaller awards can add up, so don’t skip a grant because the amount seems modest.

5. Review your financial aid offers

After a school reviews your information, it may send you a financial aid offer listing the grants, scholarships, work-study, and loans available to you.

You don’t have to accept every type of aid in the offer. Grants and scholarships generally don’t need to be repaid, while student loans do.

Complete the FAFSA^® and any required state or school applications every year you’re enrolled. Filing once doesn’t cover all four years of college.

How to compare and keep your college grants

Compare college grants by looking at the annual amount, renewal rules, and the costs left after all aid is applied. A larger grant may not save you more over time if it is available for only one year.

When reviewing an award, ask:

• Is this amount for one year or multiple years?
• Is the grant renewable?
• Do I need to reapply each year?
• Do I need to submit the FAFSA^® again?
• Is there a GPA or satisfactory academic progress requirement?
• Do I need to stay enrolled for a certain number of credits?
• Do I need to remain in a specific major?
• Could my award change if my enrollment or financial situation changes?
• How much will I need to pay after grants and scholarships?

Financial aid offers don’t always show costs in the same way. Sallie Mae’s “How America Pays for College 2025” found that only 36% of families said their offer included the school’s cost of attendance. Just 27% said it included their expected out-of-pocket cost.

Contact the school’s financial aid office when an amount or requirement isn’t clear. Ask how much of the offer is free aid, how much would need to be repaid, and what you’ll owe after all aid is applied.

How to keep your grant from year to year

Many grants are renewable, but you may need to take action each year. Requirements can include:

• Completing the FAFSA^® again
• Submitting a renewal application
• Meeting satisfactory academic progress rules
• Maintaining a required GPA
• Staying enrolled for a minimum number of credits
• Remaining in an eligible major or program
• Completing a service obligation

Save a copy of your grant terms and check with your financial aid office before changing your enrollment, major, or school.

What should I do if my financial situation changes?

Contact your financial aid office if your family experiences a job loss, income reduction, major medical expense, divorce, death, natural disaster, or another major change.

Explain what happened and ask whether the school can review your financial aid. The school may request documents and decide whether your grants or other aid can be adjusted.