Grant-In-Aid

AAA

DEFINITION of 'Grant-In-Aid'

A transfer of money from the federal government to a state government, local government or individual person for the purposes of funding a specific project or program. The federal government gets this money from income tax revenues. Grant money is not a loan, and does not have to be repaid, but it does have to be spent according to the federal government's guidelines for that particular grant.

INVESTOPEDIA EXPLAINS 'Grant-In-Aid'

Grant-in-aid can be awarded to a university faculty member to pursue a particular line of research, but there will be restrictions, which will vary by grant, on how the money can be used. For example, a permitted use of the funds might be to pay undergraduate students to assist with the research; a non-permitted use might be the payment of university utility bills.





The recipient will also have to meet certain requirements to qualify for the aid. An individual recipient might be required to meet certain citizenship and/or residency requirements, for example.

RELATED TERMS
  1. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
  2. Stipend

    A predetermined amount of money that is provided periodically ...
  3. Pell Grant

    A program that awards money to eligible undergraduate and, in ...
  4. Government Grant

    A financial award given by the federal, state or local government ...
  5. Grant

    The issuance of an award, such as a stock option, to key employees ...
  6. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
Related Articles
  1. Savings

    Canadian Grants And Tax Credits Fund Education

    RESPs and other grants help parents save for post-secondary education for their children.
  2. Credit & Loans

    Your Kid's College Loan: Who Should Foot The Bill?

    Discover the federal student loan options for both parents and students.
  3. Options & Futures

    Paying For College In An Economic Downturn

    There are many ways to fund a child's education including loans, scholarships, grants and protecting your investments.
  4. Credit & Loans

    Student Financial Aid Changes: FAFSA 2009

    The Free Application for Federal Student Aid got an upgrade in 2009. All those applying should be aware of these improvements.
  5. Retirement

    College Cost Reduction Act Helps Students Meet Payments

    This legislation can help families pay college costs and reduce student debt.
  6. Budgeting

    Pay For A College Education With Retirement Funds

    These savings vehicles may be better than college saving funds for some families.
  7. Economics

    What impact does quantitative easing have on consumers in the U.S.?

    Dig deeper into the Federal Reserve's quantitative easing policies and what potential impacts they may have on American consumers.
  8. Economics

    What regulations are in place that affect fracking?

    Read about some of the regulations that impact the practice of hydraulic fracturing, which is used to increase oil and gas well output.
  9. Economics

    What is the role of deficit spending in fiscal policy?

    Read about the role deficit spending can play in a government's fiscal policy, and learn why economists are torn about the efficacy of debt-related stimulus.
  10. Economics

    Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given policy proposal.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center