Money often plays a big factor in the pursuit of a college degree. Yes, college is expensive, but there is aid available to help you and your family pay for college. Major sources of financial aid for college include:
Grants – Grants are “gifts” from the government and individual colleges that reduce the cost of college. Grants are awarded based on your family’s financial situation. Colleges are the largest source of grants for higher education. The Federal Government and some state governments also offer grants to help students from lower income families pay for college costs. Grants do not have to be paid back or earned. Grants may be renewed every year you attend college, although if your family’s financial situation changes, the amount you receive may also change.
Merit scholarships – Merit scholarships are offered by many colleges and private organizations. Scholarships are similar to grants in that they are a gift; you don’t have to repay them. Merit scholarships can be awarded for many reasons, including your grades, test scores, extracurricular activities, intended career or college major, and in some cases, your family’s financial situation. Some merit scholarships are only good for your first year of college; others may be renewed every year you attend college.
Federal work study – Work study is a program that allows students to earn money for college expenses by working in an on-campus job while they attend school. Usually, a work study job will help you pay for books and other personal expenses, but not tuition or living expenses. Work study jobs often have flexible hours and can be a great way to start building a resume. Work study does not have to be paid back, and is earned over time as you perform your work-study job.
Federal student loans – The Federal government offers low-cost student loans to help students and parents pay for college. When used wisely, Federal student loans can be a good way to finance some college costs. They have low interest rates and in most cases you won’t have to start paying them back until after you graduate. If you leave college without graduating, you will still be required to pay the loans back.
Important tip: Every college is required to provide families with an estimate of the amount of financial aid they may be eligible to receive. This estimate is not a guarantee but can help you compare the cost of colleges you are considering. To get the estimate, go to each college’s website and look for the Net Price Calculator, usually located in the financial aid section of college websites. To use the Net Price Calculator, you’ll need a copy of your family’s last tax return. Note that families earning income from self employment will have a harder time determining their eligibility for aid using this tool.