Grants are monetary awards that are usually need-based. That means they're given out based on a student's financial situation.

If a student's family income is below a certain threshold, they might qualify for more grant money from the federal government, state government, and their school. Some grants have specific requirements. For example, the TEACH Grant requires students to work in the education field after they graduate.

Federal grants, like the Pell Grant, are a common source of funding. A student can qualify for Pell Grants by submitting FAFSA.