Grants and scholarships are the end of the rainbow for all students. They are both "free" money, meaning they don't ever have to be repaid.  Grants are available through 26 different government agencies including the EPA and NASA. Scholarships can come from all areas including schools, community organizations, and companies to name a few.

Grants

Grants are different from scholarships in one area, they are need-based. Some scholarships are that way, but not all. When searching for grants, they are divided into four main categories: student-specific, subject-specific, Degree Level and Minority.

The most commonly know are Pell Grants and they are awarded to students working on their bachelor’s degree and to some qualified post-baccalaureate students. Although the Pell Grant Program is not available at every university, over 5,000 of them participate in the program. The maximum award for the 2006-2007 school year was $4,050, and the average amount was $2,445. According to the U.S. Department of Education, in 2006 the government appropriated over $13 billion to this program and the budget is expected to grow for the next fiscal year.

Things that factor into the amount each student can potentially receive depend on whether or not they are full-time, how much the family is able to contribute, as well as the cost of tuition.

For more information on the other grants available in the US, check out collegescholarships.org .

Scholarships

A scholarship is a type of financial aid awarded based on academic merit, athletic achievement, community service, race or ethnicity, and other achievements, and does not have to be repaid.

The number of scholarships available to students today is unlimited. Anyone can offer them: companies in both private and public sectors, universities, television and radio stations, the possibilities are endless, it's just a matter of who wants to invest their money in America's future; it is your job to take the initiative and find them.

The great thing about scholarships is that there is no cap or limit unlike other forms of financial aid. This means you can apply for and accept as many as you would like. Consequently, the total amount you do end up collecting through scholarships has a direct impact on how much government-assisted financial aid you may qualify for.

You will find a simple Internet search, or investing ten minutes of your time in the classifieds to be very helpful. There are a number of online databases that provide tailored lists of active scholarships based on the criteria each student meets. There are even websites that help students prepare near perfect applications and provide great essay tips.

School counselors and advisors also hold a plethora of knowledge and information about funds available to students and many times have access to opportunities most people would not hear about on their own. Take advantage of your resources so that you can explore all the options made available to you.