Grant

Grant summary: 

  • Grants provide money to people in need, with no requirement to pay the money back.

  • Governments, nonprofits, and corporations can offer grants to people who need help with housing, household bills, healthcare, and education. 

  • Grant alternatives may sometimes offer relief when you have a financial hardship. 

Grant definition and meaning

A grant is an amount of money someone receives that doesn't have to be paid back. Grant programs are designed to provide people with money for specific purposes when they otherwise wouldn't be able to get it elsewhere. 

Grants can help meet different needs. For example, Pell Grants offer financial aid to help eligible students get a college degree. Down payment assistance programs, meanwhile, can offer grant funds to help people buy homes. 

Eligibility for grants is typically based on financial need or hardship. Some grants have rules on what you can use the money for.

Key concept: A grant is a gift of money that doesn't have to be paid back.

More on grants

Free money sounds too good to be true, right? But that's what you could get if you qualify for grants. 

A grant is money that you don't have to repay. Maybe you're familiar with education grants for college, but that's just the tip of the iceberg. 

Personal grants can help you reach other financial goals or meet basic needs if you're in a hardship situation. Grants are sometimes difficult to get approved for, but it's an option you might explore when you need money. 

Key features of grants

Grants are a form of financial assistance. Grant programs can help people ‌change their lives in big and small ways. While grants can have different purposes, they typically have one thing in common: the money they provide doesn't have to be repaid. 

Where do grants come from? The list includes:

  • Federal government programs

  • State programs

  • Public charities

  • Private foundations

  • Endowments

So where does the money to pay for grants come from? In the case of government grants, the money comes from tax dollars and budget measures. Funds are then given to people in need through grant programs. 

For example, a local food bank might get money from government grant programs to support food distribution efforts. People in the community can then visit the food bank to apply for assistance. 

Grants offered by corporations may be funded through a share of the company's profits. Private foundations and endowments (which are a type of nonprofit) typically raise money for grants from private donors, which may be individuals, families, or corporations. 

Types of grants

Grant programs help people do things like pay for college, start businesses, or make improvements to their homes. They also help people pay for housing, cover utility bills, or put food on the table in times of hardship. 

Here are a few examples of grants for people in need:

  • Pell Grants. The Pell Grant program helps students with financial need pay for college. 

  • LIHEAP grants. LIHEAP, short for Low-Income Home Energy Assistance Program, is funded by grants from the federal government. The program helps low-income Americans pay utility bills and make energy-efficient home improvements.

  • VA grants. The Veterans Administration sponsors grant programs for military veterans and their families, including funds for disabled vets who want to buy a home or remodel one to accommodate their needs.

  • Emergency Rental Assistance Program. The Emergency Rental Assistance Program is a federal grant program that offers temporary help with housing costs. 

  • Temporary Assistance for Needy Families (TANF). The TANF program is funded through federal grants and offers money to families who are experiencing a hardship situation. 

These programs could offer help, but relief isn't always quick in coming since you'll have to apply for aid and be approved. If you need money for a financial emergency or hardship immediately, you might consider these options:

Is there a grant program to help with credit card debts? No, but there are other ways to get financial help if you can't keep up with payments. 

For example, you might qualify for a credit card hardship program through your credit card company. Or you may want to talk to a Debt Consultant about debt resolution. When you resolve debt, you ask creditors to agree to accept less than what you owe. Debt resolution could help you reduce your debt so you can get back on your feet faster.

Grant FAQs

There's no specific grant program that offers free money to help you pay down your debts.

If you have a financial hardship and can’t afford to fully repay your debts, you could consider talking to a debt expert about debt resolution instead. Resolving debts means getting your creditor to agree to accept less than the full amount you owe and forgive the rest. With debt resolution, it’s possible to significantly reduce your debt.



A short-term loan could be a good idea if the cost is affordable and you're confident that you can pay it back on time. Short-term loans are usually best for smaller amounts or temporary money needs.


It’s easiest to set up a source of emergency cash before you start missing payments. An emergency credit card can be a lifesaver. But if that ship has sailed, one option is a personal loan. You can apply even if you have credit problems. A hardship loan may be what you need to get back on track.

The Temporary Assistance to Needy Families (TANF) program provides emergency cash to qualifying families. 

Don’t pursue ultra-fast sources of cash like payday loans, check advances, or title loans. They are so incredibly expensive, you could quickly (probably within two to four weeks) find that your financial situation is even worse. The vast majority (85%) of payday and check advance borrowers have to renew their loan because they can’t afford to pay it off. Try friends and family instead.

Yes, some loans are designed for people with lower credit scores. Lenders will consider your hardship, but your credit score and finances will also be reviewed, just as they would for any other type of loan.

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