Grant money can come from the federal government, state governments, your college or university and private foundations.
You apply for federal grants like the Pell Grant by completing the Free Application for Federal Student Aid (FAFSA). Private grants, like those from the Gates Foundation, usually require a separate application.
Federal grants such as the Pell Grant are determined by looking at a family's income and size, the cost of attending school and whether the student is attending full time or part time. The criteria are usually similar for private grants but may take into consideration other factors like academic achievement.
The federal government awarded over $25 billion worth of Pell grants for the 2009 school year. In December 2008, Bill Gates donated $70 million for grants for low-income students.
Grants reduce the amount of money that students must earn to pay for college. According to "The New York Times," 75 percent of low-income students finish a degree.