This is our second installment on grants for college tutorial. The first one covered federal college grants. This one tackles state-sponsored grants - free money offered by your state.

State-sponsored grants for college is a definite avenue to explore when searching for a college grant. Each state has its own unique set of grants. There are way too many to list here. So we are going to give you some info and strategies to help you on your search for the free cash.

• You should explore your state’s higher education website for both need- and merit-based grants.
• State grants usually require a separate form than the FAFSA, specifically for your state grant program in order for you to be considered.
• You are typically only eligible for a state grant if you are a state resident. Every state offers need-based grants to its resident undergraduates. Most of these grants are funded with help from Uncle Sam’s State Student Incentive Grant (SSIG). 
• Some states have signed reciprocity agreements with other states to offer need-based grant programs to out-of-state undergraduates.
• Many state grants are merit programs - there is an academic threshold that you must attain (usually a 3.0 GPA or higher) to be eligible and you usually also have to demonstrate financial need.
• You may need to submit some sort of GPA verification form in order to prove that your grades are what you say they are.

Here’s a list of some interesting State-Sponsored Grants:

Arizona offers resident students who’ve attended a community college further aid if they wish to pursue a 4-year program. The Arizona Private Post-secondary Education Student Financial Assistance Grant gives between $750 and $1500 to qualifying students with financial need.

Kansas optometry students may receive Optometry Service Grants in return for staying to practice in the state.

Michigan students with speech or mental impairments should explore the Evelyn and Fredrick Weissman Education and Charitable Foundation available through the state.

Charley Wootan, a former chairman of the student loan guaranty in Texas, started his own grant in 2002 (The Charley Wootan Grant Program) to offer valuable assistance to Texas students really in need and wishing to pursue a college degree.

Wyoming Space Grant Programs offer money to undergraduate and graduate level students pursuing research in space science at a Wyoming 4-year or community college.

Check out next week’s college grants tutorial on grants provided by colleges and universities!

FAFSA Financial Aid Key Terms You Need to Know 

Cost of Attendance: What it costs to attend a specific college, including tuition & fees, room & board, books, transportation, personal expenses, and all other necessary expenses associated with going to that college.

Dependent Student: A student who is dependent on a parent or family member for financial aid purposes. If you are a dependent student, you are required to file the FAFSA using both student and parent financial information.

EFC: Expected Family Contribution. How much your family is expected to contribute to college costs. It is subtracted from the Cost of Attendance at the college(s) you plan to attend, to determine your eligibility for federal student aid.

FAFSA: The Free Application for Federal Student Aid. The form you need to fill out to get most types of student financial aid, including grants and loans.

Federal Methodology (FM) or Federal Formula: The calculation, used by the federal government, to determine a student’s Expected Family Contribution (EFC). In other words, the standardized methodology for figuring out how much you can contribute to your education to determine how much financial aid you will receive in the form of grants or loans.

Independent Student: What you are considered for financial aid purposes if you are financially independent. If you are an independent student, then you can file the FAFSA without submitting any information about your parents financial situation (although spousal information is required if you are married).

PIN: If you are applying for your FAFSA online, the PIN number acts as your electronic signature.

SAC: Student Asset Contribution. The portion of the EFC that is comprised of your personal assets (cash, checking, savings, investments, trust fund, etc.). 

SAR: Student Aid Report. What the Department of Education sends you after you file your FAFSA form. The SAR lists the information you reported on your FAFSA. At the upper right of the front page of the SAR, you’ll see your Expected Family Contribution.

FAFSA is a 5 letter F-word that doesn’t sound like much. But if you are going to college and applying to financial aid, it’s a term you are about to get to know…intimately.

FAFSA stands for The Free Application for Federal Student Aid and if you want money for college you definitely will come across this form. In fact, the FAFSA is considered the king of all financial aid forms because it is the gateway to most types of financial aid—be it federal grants or loans.

So let’s help you get acquainted a little better.

The deadline for filling out the FAFSA form for this year is June 30, 2008. You can file the form online at or on paper. Applying online is recommended because the process is both faster and easier. Once it’s filed and processed, you will receive a Student Aid Report (SAR) by email or by post. This report will tell you how much your family is expected to contribute to college costs. Schools use that info to prepare your financial aid package.

 That means money for college. So it’s definitely worth it to take the time to fill out the FAFSA application. It should take about an hour or so to do the application online if you have all your necessary documents. (See below for what you need).

FAFSA Tips and Tidbits

• To organize your info, print and complete a FAFSA on the Web Worksheet before you begin entering your information online.
• Make sure you use the most up-to-date version of the form.
• Don’t Skip Anything unless the instructions specifically tell you that you can. If you do not own a business, for example, put down “0″ for any values related to a business. It’s a machine that processes the form.
• Proofread your form and make sure everything has been answered correctly.
• Make sure that you have provided the necessary signatures. If you are applying online, you will be given a pin number, which acts as your electronic signature.
•  Make sure you also fill out the college’s supplemental financial aid forms to the FAFSA.
• Make sure you know the deadlines for your separate supplemental financial aid forms.  Unfortunately, the deadlines for the supplementals and the FAFSA are usually different.
• You have to submit a new FAFSA application each year. Your finances may change from year to year so make sure you get the most financial assistance that you can!

Documents you need for filling out the FAFSA:

your Social Security Number, your driver’s license (if applicable), your 2007 W-2 Forms and other records of money earned, your (and your spouse’s, if you are married) 2007 Federal Income Tax Return, your parents’  Federal Income Tax return (if you are a dependent student), your 2007 untaxed income records (Social Security, Temporary Assistance for Needy Families, Welfare, Veterans benefits records), your current bank statements, your current business and investment mortgage information, business and farm records, stock, bond and other investment records and your alien registration or permanent resident card (if you are not a U.S. citizen).

Check out the key FAFSA terms if you want to know more.