• The government provides grants to get money back in your pocket.money image by Bradlee Mauer from Fotolia.com
  
  For many people, being in debt has become a normal state of existence. With credit cards, student loans, mortgages and car payments, average Americans are swimming in debt. Others factors contributing to debt are medical bills and bad investments. Although it can seem as though the system is set up to put people in debt, the federal government does provide grants to get those in need out of the red.
  
  

What is a Government Grant?

• According to the federal website Grants.gov, a grant is "an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States." In other words, a government grant is not "free money," but rather a way of helping citizens who will in turn be able to provide for society in some kind of meaningful way. (See Reference 1.)
  
  

Why Provide Grants?

• Government grants allow people to put money back into the economy.shopping cart image by dethchimo from Fotolia.com
  
  When people are spending all their money on their debt, they aren't spending on goods and services, which creates a problem for the overall economy. By providing grants to assist those in debt, the government is allowing people to spend money again, which buoys the economy. Grants also help to keep people from filing for bankruptcy, which is also healthier for the economy. (See Reference 2.)
  
  

Grants vs. Loans

• Generally, government grants are easier for those in debt to procure than loans. Loans require collateral, whereas grants require documentation of need. Additionally, loans must be repaid, and grants generally do not. However, the process for receiving a grant is much longer than the typical loan application process. (See Reference 2.)
  
  

Types of Grants

• The federal government has more than 1,000 different grant programs, which are divided into 26 categories. You can search through these grants on the official government grant website, Grants.gov. There is also specific information about each of the categories and grants, and you can even apply for grants and track your application on the website. (See Reference 3.)