What Are Grants and How Do They Work?

Grants are money for college or career schools that do not need to be paid back. Unlike scholarships, grants are awarded primarily on basis of need, not academic merit. While loans need to be repaid, grants do not need to be repaid.

In most cases, grants are awarded by the federal government or your state government. But in certain cases, grants can be awarded by the school or a non-profit organization.

Most college grants for college are need-based, meaning they are awarded on your family’s economic situation. To calculate your financial need, most colleges consider your Free Application for Federal Student Aid (FAFSA) and Expected Family Contribution (EFC). EFC is a number used by your college to figure out the amount of financial aid you are eligible to receive.

Types of Grants

Campus, formerly known as MTI College, works with specific federal and state grants, to help you pay for your college education.

Federal

The US Department of Education awards federal grants to help pay for college. Here are federal grants we work with at MTI College.

Pell Grants

These grants are awarded to undergraduate students who have not completed a bachelors, Masters, or graduate degree. To determine eligibility for a Pell Grant, you must complete the FAFSA application. The amount of the Pell Grant awarded is determined by your financial need, cost of attending your school, and other factors.

Federal Pell Grants do not need to be repaid, except in very specific situations (see bottom of this page for examples).

Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG grants are awarded to undergraduate students who have exceptional financial need. These are funded by the Federal government and administered through the financial aid offices of participating schools.

If you think you might be eligible for FSEOG grant money: Complete the FAFSA as soon as possible, when it opens for the coming academic year on October 1st each year.

State

College grants from the State of California are handled by the California Student Aid Commission. These are state grants that Campus, formerly MTI College, students may be eligible to receive.

Cal Grants (A,B & C)

Cal Grants are available to qualifying Campus students. The Cal Grant program is a financial aid program administrated by the California Student Aid Commission in providing aid to California vocational training students. Applicants must submit a certified GPA and complete the Free Application for Federal Student Aid (FAFSA) using school code 008680 to use these funds at Campus. Cal Grants are the largest source of California state funded student financial aid.

Cal Grant A

The Cal Grant A program provides funds to help pay for tuition and student fees at qualifying schools for degree programs of at least two years in length.

Cal Grant B

The Cal Grant B program provides money to help pay for tuition, student fees, and educational costs in a for-credit program of at least one year in length.

Cal Grant C

The Cal Grant C program provides free money to students pursuing a vocational or career college program.

California Chafee Grant

If you are or were in foster care between the ages of 16 and 18 as a dependent or ward of the court and have financial need, you may qualify for up to $5,000 a year for career college or technical school. You do not have to pay this money back. You may also be able to use your grant to help pay for child care, transportation and rent while you’re in school. You can use your Chafee Grant at Campus or any eligible California college.

When You May Have to Repay a Federal Grant

Though these are not common, here are examples of why you might have to repay all or part of a federal grant:

• Early withdrawal from the program for which the grant was awarded to you. 
• You received outside scholarships or grants that reduced your need for federal student aid.