It costs a lot to receive a proper education. That's why the government is doing everything it can to assist those students in need. By providing them with various student aids from employment to scholarships and college grant money, the government is in effect giving these students a chance to get the education they need. But what are college grants? And how do they differ from student loans and scholarships?

College grant money is in fact a type of student financial aid that is awarded to deserving individuals. The federal government, non-profit civic groups, and private institutions may offer these grants to students generally based on economic need.

Contrary to what many people believe, a college grant is not the same as a student loan. The most significant difference is that a qualified individual is not required to repay the grant money. In contrast, a student loan applicant must meet his or her obligation to repay the money within a certain specified period. The terms of the loan will depend on the agreement between you and the lender. This significant difference is why students and parents alike favor college grant money to student loans.

Most colleges and grant programs factor in the parents' income, as well as the average cost of college, in determining the amount of money granted to the student. The result is a basic estimate of how much money you may expect to receive from the grant.

Most college grant money programs will have a fixed amount that will be provided to the college or university. Then, the student will either receive the money in checks through the postal service, or the college will automatically credit the amount to the student's account.

If you think that you may be eligible to receive federal financial assistance with college grant money, you must fill out the Free Application for Federal Student Aid, or FAFSA. Applying online at FAFSA.ed.gov is the easiest way to do this is. You'll have to submit your FAFSA application no earlier than January 1st of the year you will be attending school.

However, be cautious of the dates on which you will be filing for college grant money. Sometimes, the deadlines announced by the federal student aid programs and your college of choice may vary. Just to be safe, file your application long before any of the dates.

There may be other forms that you'll need to submit in addition to the FAFSA. If you are an incoming freshman, you may also need to complete a CSS Profile Application, as required by many private colleges. The CSS profile will give administrators a broader set of data from which to derive your eligibility for need-based institutional assistance. The profile application is usually available in the middle of October. Registration and application may be done online at CollegeBoard.org.

With the use of the processed information from either the FAFSA or the CSS Profile, colleges determine your eligibility for college grant money by using your household, demographic, and financial data as the basis.