Grants are financial assistance provided for non-profit educational institutes by Federal and State Government to assist students. Grants are primarily for undergraduates, and just like scholarships, are not repayable. Grants issued to students are precisely according to the cost incurred in fulfilling college requirements. Students wishing to receive a Grant must meet the eligibility criterion, which if not met leads to seizure of Grant.
Grants have certain specific mentionable obligations. For example, grants are for social benefit and its use somewhere else other than social benefit will be a violation of an obligation. In such cases, non-fulfillment of an obligation results in legal repercussions.
Basic types of grants issued in the US are:
Pell grants are issued to college students who are going to earn an undergraduate degree.
ACG (Academic Competitiveness Grants) is for college students enrolled in a two or 4-year degree program and experiencing a severe economic crisis.
FSEOG (Federal Supplemental Educational Opportunity Grants) is one of the few types of grants that are for college students who cannot afford higher education.
Students applying for Grants must understand that before opting for any grant, they require annual completion of the FAFSA (Free Application for Federal Student Aid). FAFSA acts as an intermediary between the target college and the student applying for Grant. FAFSA, through Federal Student Aid Application, determines a student’s family‘s monetary contribution in his or her college expenses and sends recommendations to the college. The college then decides the issued amount of grant based on recommendation sent by FAFSA.