Federal education grants are generally awarded in terms of loans or grants. Typically, the students who acquire Pell grants are required to pay only the semester withdrawal fee and besides this, the government directly pays the remaining amount.
In simple words, students who are given Pell grants are exempted from paying it back. However, another grant is Federal Supplemental Educational Opportunity Grant. Usually, this type of grant is offered to individuals who need money for their schooling purposes. It is also called as TEACH grant. Moreover, besides such Federal Education Grants, private grants are also provided to all those students, who cannot afford education.
Usually, various private organizations and foundations provide such grants. Furthermore, one of the most admired grants is National SMART Grant. Educational institutions, public or private schools award this type of grant. In addition, there are several communities, which are taking initiatives and coming forward to provide such grants for students.
On the other hand, there are educational loans provided by private sector banks, usually they are to be paid back within a stipulated time. However, the government banks give a grace period of time to both subsidized as well as unsubsidized borrowers to pay back loan. However, in an unsubsidized loan, the interest amount is to be paid by student whereas in subsidized loan term the government pays the interest.
Above all, there are Federal Programs and Federal Education Grants that provide various other facilities to students such as financial support and special fellowship programs. Moreover, it is been mentioned in a Philanthropy Journal that several foundations or big organizations offer more than 500 million USD grants, basically it aims at raising the education standards, literary services, promoting grants and funds towards youth education and to carry out civic education programs. In addition, such grants are available for teachers too.