Government Grants, Pell Grants, School Grants

Grants, also called scholarships or gift aid, are the best kind of financial aid. They are free money that you don't have to pay back. Generally, grants are awarded for one of three reasons:

Need: The student has qualified as financially needy, usually by filling out the Free Application for Federal Student Aid (FAFSA), or the CSS Profile. The US government offers a wide-range of need-based grants. Go only to .gov websites however. There are many scams that look like real government websites but are just trying to get processing fees.

Merit: The student is being rewarded for good grades, athletic skill, musical talent, etc. This is best achieved through local, state and national scholarships. Some due diligence can often turn up several some scholarships that can be strung together to make a dent in your education costs.

Employment benefit: The student or the parent qualifies for tuition assistance through an employer. Many universities, for example, give employees' children a break on tuition. Consider working for a company that provides education benefits. Ask you human resources department. It's possible to sometimes for companies to create special bonuses for completing a degree related to the job.

Negotiate!: If you bring a compelling reason to your school, you may be able to negotiate a reduced rate, qualify for tuition reimbursement or may be able to work as an assistant or researcher to offset tuition. Ask early and ask often. If you have multiple schools on your list, interview them to see which one has the best financial assistance.