What is a college grant?

A college grant is financial aid money that does not have to be paid back to the government, the school or private organization that awarded the funds, according to the U.S. Department of Education. If the student withdraws and breaks enrollment, he may have to pay the funds back.

Grants are typically needs-based and are funded due to the inability to pay for continuing education or having a low income. Eligibility for college grants is assessed from information supplied on the Free Application for Federal Student Aid. Some federal grants are not made available to certain felons or those incarcerated in a federal or state institution.