FOUR TYPES OF GRANTS

First, the major types of grants:

• Federal Pell Grants. By far the largest grant program, Pell grants range from a few hundred dollars to several thousand dollars. These grants are based solely on need, as determined by the student's college of choice using federally approved guidelines. Eligible colleges receive a fixed amount of Pell money each year; once it's gone, it's gone, which is why it can pay to apply for aid early. Students receiving Pell grants who are math or science majors may also be eligible for the Academic Competitiveness Grant ($850 on average) or National SMART Grant (up to $4,000). Both were introduced in 2006.
  
  
• Federal Supplemental Education Opportunity Grants. These grants of $100 to $4,000 are reserved for the neediest of students. As with Pell grants, students apply through their colleges' financial aid offices.
  
  
• State grants. Most states have some kind of free-money program -- again, often based on need, although some programs are also targeted to encourage study in certain areas, such as teaching or nursing. California encourages future teachers, for example, by assuming up to $19,000 of loans if the student teaches in a low-income area, particularly subjects where there's a shortage. Meanwhile, Ohio's main grant program targets its lowest-income residents; once you make more than about $35,000 with one child, your eligibility for the $174-to-$5,466 grants can disappear. To find these grants and how to apply, check the Web site for your state's student-aid or higher-education commission.
  
  
• Institutional grants. These grants come from the colleges themselves, and they are handed out when federal and state aid isn't enough -- or when the school is trying to discount its sticker price enough to attract a desirable candidate. Sometimes, colleges will substitute grants for loans to sweeten the deal for a sought-after student. Typically, you don't apply for these grants. But students can increase their chances for an attractive financial aid package by targeting schools that are likely to want them, rather than fighting to be admitted to a school that has plenty of other choices.