How to supplement your college savings with grants
Many college students rely on financial aid to pay for college. Grants are one of the most desirable forms of college financial aid, as they can supplement your college savings since you don't have to pay them back. There are other forms of college financial aid, but not many are as lucrative as grants.
Keep in mind, however, that just like student loans, grants rarely cover the entire cost of college. Unlike scholarships, grants are awarded on the basis of need as opposed to merit (like academic or athletic achievements). The greater your need for financial assistance, the more grants you’re likely to receive.
Types of grants
Corporate grants
You can qualify for financial grants from companies whether or not you’re working. Grants are more common amongst well-established companies like Google. Most of these grants are usually available for (but not limited to) the company's employees and their close relatives.
If you’re looking to apply for a corporate grant, check out companies that have a foundation in their business structures. These major corporations typically use their endowments and foundations to issue out financial aid to deserving students. But don’t completely rule out smaller local businesses, either.
Federal grants
The federal government is the largest source of college or student grants. To benefit from financial aid from the federal government, apply for federal student aid (FAFSA) which determines how much you need financial aid.
Things like expected family contribution (EFC), family size, assets, and parental income will be used to assess your eligibility. This information is then used to generate your student aid report, which is sent to your college of choice to evaluate your grant eligibility.
Institutional grants
Many colleges provide financial aid in the form of grants based on need and merit. Unlike the common assumption, merit-based grants are not only meant to benefit straight-A students. Some of the merits that are considered in awarding college grants includes participation and volunteering for different leadership roles or club memberships.
These institutions also award grants based on how much you need financial assistance. One of the most accessible grants in institutions is the academic department grant, which is tailored toward students who are majoring in a specific field.
State grants
Many needy students benefit from grants from the states they live in. To benefit from this type of grant, you must be a proven resident of the state and, in some cases, enrolled in a state-funded public college. These grants come in handy as they’re designed to cater to specific college expenses like supplies, books, and tuition.
Most state grants are awarded based on academic merit from high school. The application process is different for many states. Some states require an application through the college's financial aid office, while in others, you can just fill out the FAFSA.
Examples of popular grant programs
Pell Grants
Created by Claiborne Pell, a former senator of Rhode Island, the Pell Grant is one of the big kahunas of college grants. You automatically get considered for a Pell Grant when you fill out the federal financial aid form.
While the average grant given is $2,494, the amount of money you receive as financial aid depends on your need. Qualified students are eligible to receive the Pell Grant for a maximum of 12 semesters.
Supplemental Education Opportunity Grant
When your FAFSA is evaluated and you qualify for the Pell Grant, the federal government can consider you for an opportunity grant, too. Federal Supplemental Educational Opportunity Grants are awarded to exceptionally needy students with the lowest EFCs. The amounts received vary from college to college but usually range between $1,000 and $4,000. You can check with your college to see if it participates in the FSEOG program.
Teacher Education Assistance for College and Higher Education Grant
The TEACH grant provides financial support to students who intend to teach highly needed subjects in secondary or elementary schools attended by low-income students. These college grants amount up to around $4,000 each year. Some of the “high need” subjects include math, foreign language, special education, science, and reading. For this grant, you don’t have to demonstrate any need for financial support.
How to find suitable grants
One sure way of keeping updated with available grants is through reliable sites like CollegeData, which provides helpful information on grants and other college-related topics. You can also check with your state to see if they offer any student grants. Not all colleges participate in grant programs, so contact your college’s secretary to see if there are any grant awards available from the institution.
Paying for college can be tough. Luckily, there are several financial aid opportunities available, both from the public and the federal government. Check out more money-saving tips for students for a more comfortable college life.
