According to the Education Data Initiative, the average cost of a college education has more than doubled in the 21st century. So, if you’re thinking about heading to college after you graduate school or you want to boost your skill set to improve your position in the workplace, you’re likely to be aware that furthering your education can be extremely costly. Fortunately, there are educational grants available that can reduce your tuition costs.
Ways to Cover the Cost of Your College Education
There are a number of ways that you can pay for college. Unless your parents have been saving for your college education since you were a small child, chances are that you will need to rely on some other form of financial aid to cover the costs.
The most common form of finance is a student loan. Student loans are available as federal funding or from private companies, but in either case, you are borrowing money that must be repaid with interest. Although you can defer starting repayments until you’ve graduated, once you’re in the workplace, they will become a monthly expense.
Another option to cover the costs of your education is a scholarship. These are available from nonprofits and private organizations and are typically based on a particular area of study, talent, academic merit, or financial need.
There are also Federal Work Study programs that allow you to earn money for school with part time work. This is often necessary, particularly for scholarship recipients, where the scholarship only covers part of their costs. This type of program ensures the student earns at least the current federal minimum wage, but you would need to juggle work, your classes and studying.
Finally, there are grants that generally provide financial aid that does not need to be repaid. Each grant has its own eligibility criteria and there may be clauses where you need to repay the money if your financial or educational situation changes.
| Method | Description | Key Eligibility Requirements | How to Apply |
|---|---|---|---|
| Work-Study Programs | Earn money for tuition through part-time campus jobs. | Financial need, enrolled at least part-time | Apply via FAFSA, check with college job center |
| Employer Tuition Assistance | Some employers help employees pay for school. | Employment with participating company | Inquire with HR department, follow employer’s application process |
| Military & Veteran Benefits | Programs like the GI Bill cover tuition for service members. | Military service or dependent of a service member | Apply through VA.gov or your military branch |
| Crowdfunding & Fundraising | Online platforms help students raise money for tuition. | None—depends on network and outreach | Use sites like GoFundMe or Fundly |
| Tax Credits & Deductions | Reduce taxable income through education-related tax breaks. | Must meet IRS requirements for tuition expenses | Claim on your tax return (e.g., Lifetime Learning Credit) |
| Federal Grants | Need-based grants like the Pell Grant help cover tuition. | U.S. citizen, financial need, enrolled in college | Fill out the FAFSA at studentaid.gov |
| State Grants | State-funded programs provide financial aid to residents. | Residency, financial need, college enrollment | Check your state’s education website |
| Institutional Grants | Colleges offer grants based on need, merit, or demographics. | Varies by school (need, merit, field of study) | Apply directly through your college’s financial aid office |
| Private Grants | Nonprofit organizations and companies offer grants. | Based on merit, background, or field of study | Search on sites like Fastweb and Scholarships.com |
Grant Eligibility
There is a wide variety of educational grants currently available for students, but it is important that you understand the eligibility requirements for the specific grant or program. If you’re not legally eligible for a particular grant, you can waste significant time and money going through the application process with no success.
The first step to determine eligibility is to assess whether you’re applying as an individual or representing a type of organization. Individuals can submit an application on their own, but you will be restricted to funding opportunities open to individuals. On the other hand, you may be able to apply as a nonprofit, for profit or educational organization. There are even some grants that are available for small businesses.
For the purposes of this article, we’ll focus on educational grants for individual applicants.
Popular Federal Educational Grants
The US Department of Education provides a variety of federal grants for those attending four year colleges, universities, community colleges or career schools.
Federal Pell Grant
Usually Federal Pell Grants are awarded solely to undergrad students displaying exceptional financial need and who have not earned a professional, bachelor’s or graduate degree. However, there are some exceptions. For example, if you’re enrolled in a post baccalaureate teacher certification program, you may qualify for a Federal Pell Grant.
Unlike a student loan, Federal Pell Grants do not need to be repaid unless certain circumstances apply. To maintain your eligibility, you must enroll in a course of study at a non-foreign school and complete the appropriate paperwork each year that you’re in school. Once you have earned your degree or you’ve used up 12 terms of eligibility, you will no longer receive the grant.
The grant amount changes each year, but there is a maximum cap to the award. The amount eligible applicants receive is calculated according to the cost of attendance, whether you’re a full time or part time student, whether you’ll attend the full academic year and your Student Aid Index, which is determined by the information you provide on your application form.
However, there are certain circumstances where eligible students can receive up to 150 percent of a scheduled award for an award year. As an example, if you qualify for a $2,000 Pell Grant for the award year and enroll full time for the spring and fall term, you’ll receive $1,000 in spring and $1,000 in fall. However, in certain circumstances, you may qualify for an additional $1,000 for an additional term within the award year. But, you can only receive the Federal Pell Grant for a maximum of 12 full time terms. You’ll receive notifications when you start to approach your grant limit.
You may also receive additional Pell Grant funds if your parent dies while serving active duty as a public safety officer or in the US armed forces.
FSEOG (Federal Supplemental Educational Opportunity Grant)
FSEOG is a program directly administered by the financial aid offices at participating schools, but not all schools participate. It is available to undergrad students with exceptional financial need who have not earned a professional, graduate or bachelor’s degree.
Depending on your financial need, the available funds at your school, whether you receive other aid and when you apply, you may receive $100 to $4,000 per year. Participating schools each receive a certain amount of funds from the Department of Educations, Federal Student Aid Office. Once all of the FSEOG funds have been awarded, there are no further grants available in that year. So, if you want to apply for this program, you need to make sure that you apply as early as possible. Schools set their own deadlines, but you can find out the dates from the financial aid office or on the school website.
To maintain your eligibility for this grant, you need to continue enrollment as a student. Eligibility is determined each year and your award will be based on your current eligibility and other factors.
TEACH (Teacher Education Assistance for College and Higher Education)
Teach grants are a little different compared to the other federal student grants we’ve covered above as a condition for receiving the grant is an agreement that you will complete a teaching service obligation. If you don’t complete this obligation, the grant will convert into a loan that must be repaid with interest.
Eligibility for TEACH grants includes meeting the basic eligibility criteria for federal student aid, enrollment in a course at a school participating in the program and meeting certain academic achievement requirements. You also need to receive TEACH grant counseling to understand the terms and conditions of the service obligation and signing the TEACH grant agreement to serve or repay.
This agreement requires you to agree to serve as a full time teacher for four secondary or elementary school years at an educational service agency or school serving low income students, teach in a high need field and complete the teaching requirement within eight years of graduating.
Current High Needs Fields
- Math
- Science
- Foreign languages
- English language acquisition
- Bilingual education
- Special education
- Reading specialist
If you do not meet these requirements, all the TEACH grants you’ve received will convert into DIrect Unsubsidized Loans. These loans must be repaid in full with interest charged from the date of each grant disbursement.
However, you can request a suspension to complete your service obligation for a temporary period, but there are specific scenarios where this will be approved. For example, if you have a qualifying medical condition, are called to active duty in the Armed Forces or National Guard or live or work in a federally declared disaster area. Requests are also assessed on a case-by-case basis for exceptional circumstances.
You can find a full list of grants and programs, which you can sort by eligibility on the US Department of Education website.
How to Apply for Education Grants
If you are interested in an educational grant or any form of federal student aid, you will need to begin the process by submitting a FAFSA form. This Free Application for Federal Student Aid is available on the Student Aid website, but the financial aid office at your school may also be able to assist you in accessing the form.
The FAFSA form is used by colleges and career schools to determine your eligibility for federal funding and how much aid you could receive. If you want to be considered for any school, state or federal financial aid program, including grants, scholarships, loans and work study funds, you’ll need to complete this form. It will take you approximately one hour to complete the form and you will need to gather a number of personal documents to compile your financial information. You will need to create an FSA username and password to access the system and provide details of your parent or contributor name, your Social Security Number, date of birth, contact details and income information. You may also need to provide tax returns, records of child support payments, current balances of your checking and savings accounts and further details about your parents if you’re a dependent student.
You will need to submit a form every award year and it is a good idea to apply as soon as possible. Once you complete the form you’ll need to acknowledge you’ve read the terms and conditions before you electronically sign the document. You will then submit your form, but it won’t be processed until all of the contributors provide their details and consent. This includes approval to transfer federal tax information into the document.
Once you, your parents and any other required contributor has signed and submitted the form, it will be processed. You will see a confirmation page displaying your completion date and a data release number. This is also automatically emailed to you.
You can then log into the StudentAid website and check the status of your application. After submission, it will remain in “in process” before moving to “in review.” However, you should watch out for “Action Required” status, which means that you need to make a correction or add more details. Once the status has changed to “processed” you need take no further action.
Remember that you will need to file a FAFSA every year that you’re enrolled in school.
Maintaining Your Grant Eligibility
The requirements to remain eligible for your educational grant will vary from program to program, so you will need to check the specific requirements for your grant. This will help you to ensure that you meet the requirement to maintain your eligibility.
In most cases, this is as simple as remaining in your educational program and submitting a FAFSA form every year. However, some programs have more complex requirements, so it is always a good idea to familiarize yourself with what you need to do.
When You May Need to Repay Your Grant
If you fail to meet the eligibility requirements or don’t adhere to the terms of the grant, you may need to repay the grant funds you’ve received. There are some examples of when you may need to repay all or part of a grant.
- Early Withdrawal: If you withdraw from the program related to the grant given to you early.
- Change in Enrollment Status: If your enrollment status changes in such a way to reduce your eligibility, for example, switching from full time to part time enrollment, the amount of your grant may be reduced.
- Outside Financial Aid: If you receive outside grants or scholarships that reduce your need for federal aid.
- Failing to Meet the TEACH Requirements: If you’re a recipient of a TEACH Grant, but you fail to meet the service obligation, you will be obliged to repay your grant in full.
- Multiple Grants From Different Schools: You can only receive Federal Pell Grant funds from one school at a time, so if you receive multiple grants from different schools you will invalidate your eligibility.
You will receive a notification from your school if you must repay all or part of your grant. From this point, you will have 45 days to pay the amount back in full or agree to a repayment arrangement. In many cases, there is a large degree of payment flexibility and you can enter into an agreement that fits with your current income and budget. If you do arrange a satisfactory repayment arrangement, your school may assign your debt to the Department of Education for collection or may retain the debt for direct repayments to the school.
If you do not adhere to one of the above options, you will lose eligibility for any further federal student aid.
Important Things to Note
Navigating the eligibility, application and maintenance for the various education grants can be a little daunting, but it is important that you fully understand that student federal grants are not simply free money.
In order to continue receiving financial aid, you need to apply and reapply for the grant on time, meeting any program deadlines. You also need to provide correct, accurate information and the proper documentation to support your applications, including tax returns and financial documents.
Any change in your enrollment status needs to be shared with the relevant authorities and you must comply with any agreements which you sign as part of the federal grant program.
Remember that applying for federal student aid is a serious business and therefore it is crucial that you don’t deliberately misrepresent your financial or personal details. If you provide inaccurate or false information, this is considered fraud, and not only will you invalidate your eligibility, but you could also incur additional consequences.
The cost of getting a college education continues to increase, but there are a number of options that can help you to reduce your tuition costs and cover associated expenses. In many cases, these grants are designed to supplement your financing plans, so you may need to employ a variety of funding methods, such as combining student loans with grants and/or a scholarship. This can make it a little complicated, but you can usually discuss your specific situation with a student aid advisor at your school or browse the Department of Education website for further guidance.
Although this can seem like a long winded process, once you secure your grant, you won’t need to worry about it for the remainder of the award year, provided that you maintain your eligibility. So, it is well worth taking your time to start the procedure as quickly as possible to ensure that you provide accurate information and all of the necessary supporting documentation to ensure there are no issues in processing your application.
You should also periodically log into the Student Aid website to check on your application status and ensure that you take any necessary action as quickly as possible. This will ensure that your grant application is completed before the deadline and you qualify for your funds for the coming year.
