Accepting a Grant for College: How Does it Work

When students apply to college, they must think about how to pay for tuition that can cost tens of thousands of dollars each year. Few families can afford to bear the full weight of college tuition at a private, four-year college or university. And yet, the prospect of graduating with a huge student loan debt is a daunting one.

At Addition Financial, we work closely with college students and their families to determine which resources are available to help them with college expenses. In addition to scholarships and student loans, we also talk about grants for college. While grants don’t get as much attention as some other forms of student aid, they are widely available and can help to permanently defray the cost of college.

Why You Should Apply for Student Grants

Let’s start by talking about what a grant is and why accepting one makes sense for many college students.

The first thing you need to know is that many grants are need-based. In other words, if you or your parents don’t have enough income to afford college, you may be eligible for a grant based solely on your financial situation.

There are grants that are awarded based on merit, as well. For those, you’ll need to complete a detailed application and you may also need to provide recommendations from teachers.

Unlike college loans, most grants do not need to be repaid. In that way, they are more like scholarships than loans. When you receive and accept a college grant, the money is applied to your college expenses and will not add to your debt when you graduate.

Where to Find Grants for College

Deciding that you’d like to apply for a student grant is one thing. Finding grants you qualify for is another. Here are some things that can help.

1. First, use the Scholarship Finder tool provided by the US Department of Labor to search for grants. You can filter your search so that you’re only looking at grants. You’ll notice that some grants are need-based, and many are dedicated to helping students in particular fields of study. Apply for any where you meet the criteria.
2. Fill out the Free Application for Federal Student Aid (FAFSA) every year. Federal grant programs use the FAFSA to determine eligibility and award grants. One example of a federal, need-based college grant is the Pell Grant, which can award students up to $6,095 for the 2018-2019 school year.
3. Check for state grants in your home state. You can find your state’s agency by looking on the website the Department of Education has set up for that purpose. In most states, you can use the FAFSA to apply for grants. In others, including New Jersey, New York, and Pennsylvania, you’ll need to complete a state form as well.
4. Research local employers, advocacy groups, and professional associations to see if any of them offer grants. You will probably need to fill out a separate application to apply for grants that fall into this category.
5. When you get your college acceptance letter, it should list any scholarships and grants you qualify for. Accept those immediately, which you can do through your college.

We recommend casting as wide a net as possible when applying for grants. While it can be time consuming to research and apply for them, they can also make your college education affordable without increasing your post-graduation debt.

How to Accept a College Grant

When you learn that you’ve been awarded a grant, you’ll need to formally accept it. Here are some tips to help you.

Let’s start with the grants that are noted on your college acceptance letter. You can accept those by contacting your college and letting them know that you accept. You should accept every grant and scholarship you qualify for since they will reduce the amount of loans you need.

Grants that you apply for through FAFSA are easy to accept too. You need to let your college know that you have them, and then let the people issuing the grant know where to send the money.

If you apply for local grants, you’ll need to advise your school of those, too. You will likely need to reach out to each grant-awarding entity and let them know where to send the money. In some cases, you may be able to use the money for expenses other than tuition, such as books or off-campus housing. Make sure you know those details before you spend the money.

Finally, remember that you should fill out the FAFSA and apply for grants every year that you’re in school. Some of the scholarships you receive when you apply to college may cover multiple years, but grants are usually only for one year.

Apply for college grants is a good way to reduce your costs without accruing debt that will have to be repaid after you graduate.

You can learn more about Addition Financial’s college loan program by clicking here.