Almost everyone in the United States has come across the term federal grants. However, very few have a distinct idea about available grants and how to apply for grants. If you are also among them, who do not have an in-depth knowledge of these aids and eligibility criteria for the same, you need to devote some time to clear your concept. A clear idea about grants will help you in reaping its advantages as and when needed.

Grants, scholarship and loan
Both scholarship and grants are termed as “gift aid” as they are free money or financial aid that does not require any repayment. Like grants, scholarship too can be offered by federal government, private organization or any non-profit organization. Yet, there is a little bit of difference between them, as grants are generally need based and you can apply free grants for multiple purposes. However, scholarships are only meant for students and are offered depending on the merit of individuals. Some career schools and colleges too offer scholarships for motivating students.

While grants and scholarships are free aid, which does not require any repayment, loans are to be repaid. Loans are offered by different banking and non-banking sectors, depending on the requirement as well as eligibility of the applicant.

Types of grants

Just learning about the difference between grants, loan and scholarship are not enough. You also need to be familiar with different types of grants before making an application for free grants and apply for the eligible one.

Grants are broadly divided into four categories, viz.

Federal Pell Grants – This type of grant is offered to students, who are cannot fund their graduate studies and have not earned their bachelor’s degree.

Federal Supplemental Educational Opportunity Grants (FSEOG) – It is also a federal grant meant for students in college and is offered to the ones, who are in dire need. This type of grants is restricted to the colleges, which participate in the FSEOG program.

Teacher Education Assistance for College and Higher Education (TEACH) Grants- Limited to $4,000 every year, TEACH grant is offered to students, who will teach at secondary school, elementary school or any other educational agencies for four years. The schools or agencies must teach students coming from low-income groups.

Iraq and Afghanistan Service Grants- As the name hints, this grant is limited only for students, whose parent or guardian have died serving the country in Iraq or Afghanistan.

Applying for grant
Though the abovementioned grants are directed toward students, it does not mean, anyone can get it just by dropping an application. Candidates looking for grants or aid need to fill and submit FAFSA or Free Application for Federal Student form. However, just completing the formalities to apply for grants once at the time of admission is not enough. To remain eligible for the grant, you need to apply grant by filling up the form every year.

Why do some students need to repay grants?
Grants offered by the federal government generally do not require any repayment. However, there are some exceptional cases, in which you may have to repay the grant amount completely or partially.

• Students, who withdraw from programs before completion.
• Students, who alter their enrollment status, need to repay the extra money.
• Any candidate who gets additional grants or scholarships needs to repay the federal grant.
• Candidates, who accept TEACH grant but do not fulfill their obligations need to pay off the money.

Repaying grants is never very difficult as the school informs the student about the repayment procedure and allocate them due time for the process. In most of the cases, a period of 45days is allotted for repayment of the grant. Students, who do not take any initiative within this period becomes ineligible for all sorts of financial aids and may have to bear their education cost on their own.

Maintaining scholarships or grants can be tricky if you do not know the guidelines thoroughly. When you apply grants online, you should visit the website and abide by the rules for maintaining a scholarship.