Credible takeaways
- College grants are a form of financial aid that doesn’t need to be repaid.
- Most grants are awarded based on financial need rather than academic performance or personal background.
- You can get college grants through the federal government, state programs, colleges, and private organizations.
- Submitting the FAFSA is the first step to qualifying for many federal, state, and school-based grants for college.
College grants can significantly reduce how much you need to pay for school out of pocket. Undergraduate students received an average of $12,080 in grant aid per student for the 2025-26 school year, while graduate students received an average of $10,960, according to the College Board. That’s roughly enough to cover a full year of tuition and fees at a four-year public in-state college.
In this guide, we’ll explain how college grants work, the different types of grants available, and how you can improve your chances of qualifying for free financial aid.
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What are college grants and how do they work?
A college grant is a type of financial aid that doesn’t need to be repaid. Most grants are awarded based on financial need. Some are also available based on factors like your field of study, military service, or disability status.
You can get grants from the federal and state governments, colleges and universities, and private organizations or nonprofits. Many grants require you to complete the FAFSA, though some private programs may have their own application process.
Federal grants
The U.S. Department of Education offers several federal grants to help students pay for college. You can apply for them by submitting the Free Application for Federal Student Aid (FAFSA):
- Pell Grant: Up to $7,395, depending on your financial need and your school's cost of attendance
- Federal Supplemental Educational Opportunity Grant (FSEOG): $100 to $4,000 a year, depending on your family's finances and the availability of funds at your school
- Teacher Education Assistance for College and Higher Education (TEACH) Grants: Up to $4,000 a year to students who plan a career in teaching
Institutional grants
Institutional grants are offered directly by colleges and universities. Many schools use the FAFSA to determine your eligibility.
Institutional grants are among the largest sources of grant funding for students, accounting for almost half of all grant aid awarded during the 2024-25 school year, according to the College Board.
Many colleges set their own FAFSA priority deadlines, which may be earlier than the federal deadline. To maximize your chances of qualifying for institutional grants, check the financial aid deadlines at each school you’re applying to.
State grants
Most states offer grant programs to help residents pay for college. These grants are often based on financial need, but some may also consider your field of study, academic performance, or background.
In many cases, you’ll need to attend an in-state college to qualify. Some programs may allow you to use funding at eligible out-of-state schools.
Most state grants require you to submit the FAFSA, and many states often set their own FAFSA deadlines, which may be earlier than the federal deadline.
You can use NASFAA’s State Financial Aid Programs map to find grant and scholarship opportunities available through your state’s higher education agency.
Private grants
Private grants are offered by nonprofits, foundations, employers, religious organizations, and private companies.
Unlike federal and state grants, private grants may have their own application process and deadlines. Some programs require essays, recommendation letters, or proof of enrollment. You can find private grant opportunities through local community organizations, professional associations, and online scholarship databases.
Armed services grants
Active duty and reserve members of the Army, Navy, Air Force, Marines, and Coast Guard can qualify for tuition assistance for higher education.
Veterans of all armed services branches are often eligible for GI Bill funding that covers much of their college tuition and living expenses.
Fulbright awards
The Fulbright U.S. Student Program offers opportunities for students to study, teach, or conduct research abroad. The program operates in more than 140 countries, awarding 2,000 grants annually in fields of study including arts, business, journalism and communications, and sciences and public health.
How to apply for grants
- Fill out the FAFSA: The FAFSA is the first step to qualifying for most need-based grant aid. Be sure to fill it out as soon as possible when the window opens on Oct. 1 during your senior year of high school.
- Look for grants on your own: To find more federal grants, check out this list of federal student grant programs. You can also search online at sites like Scholarships.com to find scholarships and grants for college.
- Review your financial aid letter: The schools you apply to will determine whether you qualify for federal, state, or school-based grants.
- Accept any grants you're offered: Each school that accepts you will list the grant aid you're being offered in your financial aid award letter.
“I recommend filling out the FAFSA as early as possible — ideally as soon as it's available. A lot of grant money is awarded on a first-come, first-served basis, and applying early can make a big difference in how much aid you receive.”
— Richard Richtmyer, Senior Student Loans Editor, Credible
Alternatives to grants
If grants don’t cover your full college costs, there are other types of financial aid that can help fill the gap:
- Scholarships: Like grants, scholarships are a form of gift aid that doesn’t need to be repaid. While some scholarships are based on financial need, many are awarded for academics, athletics, community service, leadership, or personal background. You can apply for multiple scholarships and combine them with other forms of aid.
- Federal work-study: The federal work-study program provides eligible students with part-time jobs to help cover educational expenses. These jobs are often offered through your school and may relate to your field of study.
- Federal student loans: Available to undergraduate and graduate students through the FAFSA, some federal loans are need-based, while others are available regardless of your financial situation. Federal loans also come with borrower protections and repayment benefits that private loans don’t usually offer.
- Private student loans: Offered by banks, credit unions, and online lenders, private student loans are credit-based and usually come with fewer protections than federal loans. Because interest rates and terms vary by lender, private loans are typically best used after you’ve exhausted federal aid first.
FAQ
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