Federal grants are a type of aid that is awarded by the federal
government. Grants for college students do not have to be
repaid.
Grants are based upon financial need, as calculated by the
federal aid program. The first step in applying for government
grants is by completing the FAFSA.
Of course every student and parent would rather receive grants
instead of loans, since they do not have to be repaid. So
the student hopes to see a grant award when the results are
returned from the application.
There are a few things to be aware of, however, when expecting
a grant. The government funds available for grants are limited,
therefore the grant will not usually fully fund educational
expenses. If the student is planning on attending a community
college where tuition rates are lower, it is possible that
grants will cover a greater percentage of the tuition and
fees.
The second thing to be aware of is that when the need analysis
is done by the government or school, the expected contribution
of the parent is usually higher than in reality what is possible
for most families. This expected contribution effects the
amount available to the student for grants.
Another significant factor is that if the parent or guardian
claims the student as a dependent on income tax returns, this
effects the amount of aid available to the student. In general,
a student who is 'independent' of the parents as far as the
tax law goes, will receive more in financial aid awards.
First year students may find that they receive less grant
awards than they do in subsequent college years.
Types of grants:
Remember, when you complete the FAFSA
you will apply for grants, loans and other programs all with
one easy application.
