What is a grant? Money you usually do not repay, and the rules that come with it

The short definition

In education, a grant is an amount of money given toward the cost of school. Unlike a loan, a grant is generally not paid back. Unlike a paycheck, it is not earned by working. It is usually tied to a purpose, such as tuition, fees, books, or living costs while you are enrolled.

Who gives grants

• The federal government, through programs described on the official Federal Student Aid site, studentaid.gov.
• State agencies, which run their own programs for residents, often with their own forms and deadlines.
• Colleges and career schools, which may award their own grants from institutional funds.
• Nonprofit organizations and foundations, which sometimes use the word grant for what others call a scholarship.

Why grants come with rules

The money has to come from somewhere, and whoever provides it decides what it is for. Rules often cover enrollment status (full time or part time), the kind of program, the school, and academic progress. Some grants are renewed each year only if you stay on track. Others are one-time awards. The details are always set by the grant provider, not by a website like ours.

What a grant is not

A grant is not a prize, and it is not guaranteed because someone says so. Real programs publish how they work and never ask you to pay a fee to receive an award. If an offer says you have been selected for a grant you never heard of, treat it with caution and read our guide to scam signs.

Where to check the facts

For federal programs, the official source is studentaid.gov. For state programs, look for your state higher-education agency. For school grants, your school’s financial aid office can explain what it offers and how to ask.