As of June 2010, the federal government offers six separate types of grants to students: Pell Grant, Teach Grant, Federal Supplemental Educational Opportunity Grant, Academic Competitiveness Grant, National Smart Grant and Iraq and Afghanistan Service Grant (beginning July 2010). Your state or institution may also offer educational grant money.
Your educational institute applies your grant money to any outstanding amounts you owe to the institution. If any grant money remains, your institute then refunds that money to you. Awarded grant amounts may not cover all of your educational expenses. "Grants are considered a foundation of federal financial aid, to which aid from other federal and non-federal sources might be added" notes the Federal Student Aid website.
You generally must have a financial need, as defined by the government, to be eligible for federal grants. "You must be enrolled at least half-time and in a program that leads to an associate or bachelor's degree or certificate" states the Federal Student Aid website. In addition, to continue to remain eligible for federal grants you must maintain progress in your academic program. Satisfactory progress varies from institution to institution, so be sure to check with your financial aid office. You must also be a citizen of the US or an eligible non-citizen.
To apply for grants, you must first fill out the Free Application for Federal Student Aid (FAFSA). You must fill out the FAFSA for each year you are applying for financial aid. In your FAFSA application, you indicate the institution to receive your FAFSA results. Your institution then sends you the award information for you to accept or reject.
As of July 2010, the deadline for completing the FAFSA for consideration for the school year beginning the following September is June 30. Your specific institution or state may have different deadlines. Check with your financial aid office so you don't miss critical deadlines to avoid losing out on that year's grant money. You can fill out the FAFSA as early as January of the year in which you are seeking aid.
While you do not normally need to pay grants back, if you receive the TEACH grant you must "be willing to serve as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students" notes the Federal Student aid website. If you fail to complete four years of service, you must pay the grant back in the form of a Direct Unsubsidized Loan.