College costs are rising rapidly, whether for distance learning or on-campus study. The best way to slash your tuition bill is to search for free college money in the form of grants.

Educational grants are one-time awards of money, based on merit or financial need. Unlike student loans, grants represent free money that never needs to be paid back. Grants are the best type of financial aid for both residential and online students.

You can get grants from the federal government, state government, your college, and a variety of private sources, such as trade and professional associations.

Here are some of the most common federal government grants—available to online education students as well as on-ground students:

• Pell Grants

The big kahuna of grants is the Pell grant, created by former Rhode Island senator Claiborne Pell.

When you fill out your federal financial aid form— the FAFSA (Free Application for Federal Student Aid)— you are automatically entered into consideration for a Pell grant, as well as other federal grants.

Pell grants can pay from $976 to $5,350, depending on need (average amount given: $2,494).  This award amount might be going up slightly next year. The U.S. House has passed a measure to raise Pell grants automatically each year in step with the consumer price index, plus 1 percent. If the Senate agrees and the bill becomes law, the 2010-2011 Pell grant limit will be $5,500.

Pell grants work for either online or on-campus students. They are awarded to undergraduate and post-baccalaureate students pursuing their first undergraduate degrees.

• Supplemental Education Opportunity Grant

If you qualify for a Pell grant, you may be eligible for this grant as well. The government will consider you for it when your FAFSA is evaluated.

The Supplemental Education Opportunity grant goes to students with "exceptional" financial need. It is for undergraduates only and ranges from $200 to $4,000 annually.

• Academic Competitiveness Grant

This grant is given to students with both financial need and academic achievement, and can pay up to $750 the first year and $1,300 the second year.

Students must be eligible for Pell grants and must meet academic guidelines: if they are applying for their freshman year of college, they must show they undertook a "rigorous program of study" in high school. If students are applying for their sophomore year of college, they must have a 3.0 GPA from their freshman year.

• SMART (Science and Mathematics Access to Retain Talent) Grant

This grant is designed to encourage college students to pursue science and math degrees. It pays up to $4,000.

Students must be Pell-grant eligible and must be in their third, fourth or fifth year of college. They must be majoring in physical, life, or computer sciences; engineering; technology; mathematics; or a critical-need foreign language, and must have at least a 3.0 GPA.

• TEACH (Teacher Education Assistance for College and Higher Education) Grant

This grant provides up to $4,000 annually for students who plan to teach "high need" subjects in elementary or secondary schools that serve low-income students.

"High need" fields include bilingual education and English language acquisition; foreign language; math; reading; science; special education.

Students don't need to demonstrate financial need for this grant, which is open to undergraduates and graduate students who meet academic achievement requirements.

In return for the grant, students must agree to teach at low-income schools for at least four academic years.

Besides federal grants, don't forget to seek out state and private grants.

• State grants

State educational grants tend to be based more on merit than need. Requirements vary state by state, so check with your state's official website to find out whether you might be eligible and how to apply.

One program that states offer is called LEAP (Leveraging Educational Assistance Partnership), funded by the federal government. In 2008, awards given out through LEAP ranged from $100 to $5,000. You can call the Federal Student Aid Information Center (800-433-3243) to find out how to apply for this program in your state.

Your high school guidance office or college financial aid office also may be able to provide information about this or any other state grant program.

• Private grants

Many organizations sponsor educational grant programs.

For example, the National Physical Science Consortium offers Graduate Fellowship Grants for Minorities and Women as a way to draw more minorities and women into engineering. The Jacob Javits Fellowship Program provides grants up to $30,000 to graduate and post-graduate art students and scholars.

Find grants by searching the websites for any group to which you belong to see whether one is offered. Also search the web for professional organizations for the profession you plan to pursue. Look also for associations or other groups that represent your ethnicity, religious affiliation, hobbies or other interests.

• School grants

Your college or university may have grants available to you. Check with your school’s financial aid officer.


Related Resources

Federal Government Student Aid on the Web
Great Distance Learning and Online Scholarships
GetEducated.com Excellence in Online Education Scholarship

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