If you're planning to attend college and your daddy's name isn't Warbucks, you'll need to figure out a way to pay for it. Getting money for college doesn't have to be an insurmountable task, but it is an education in and of itself. Understanding what types of financial aid are available is the first step.
There are three basic types of financial aid: student loans, scholarships, and grants. Students loans make up about 58 percent of student aid; scholarships make up less than 2 percent; grants make up about 40 percent. The best money is free money. Scholarships and grants fall into this category.
Loans have to be paid back with interest, so going after the free money for college makes sense. Federal student loan programs will usually have deferrals for payment and sometimes for interest if your situation meets the requirement for these considerations. However, student loans cannot be charged off in a bankruptcy, so don't even think about not paying them back.
While you don't need a high school diploma or GED to attend most colleges, you do need one or the other to apply for most scholarships. Scholarships come in basically two forms: academic and athletic/corporate sponsored. Scholarships can be offered by the college or university or by a private organization or corporation. Scholarships are also awarded to students from minority groups by clubs and organizations that focus on the needs and challenges of those groups.
Grants, of course, are a much better deal than loans because the money doesn't have to be paid back, and if you're not in a minority group, a more readily available type of financial aid. Grants are usually based on economic need and often given out on a first-come, first-serve basis, so it's important to apply early for financial aid. The readily available grants are federal and state grants.
There are four common types of grants: Federal Pell Grants, Federal Supplemental Education Opportunity Gra nts, State Grants, and Institutional Grants. There are also secondary Academic Competitive Grants, and National SMART Grants for students majoring in math, science and social studies, who also receive Pell grants.
Eligible schools receive a certain fixed amount of Pell Grant money each year and once it's gone, it's gone. Applying early for student aid is a must if you're hoping to take advantage of this type of financial aid. Pell grants are based solely on need, determined by your college of choice based on approved federal guidelines.
Federal Supplemental Education Opportunity Grants of $100 - $4,000 are reserved for the neediest students. Application is made through the college financial aid office.
State grants vary and can be based not only on need, but may also target certain course studies and/or career locations, such as teaching in a low-income district. Check your local state's website for student aid or higher education commission and be aware of any strings attached.
Institutional grants come from the colleg es themselves and are dispersed when federal or state financial aid isn't enough, or when a school is trying to attract candidates they consider desirable. Typically, you don't apply for these grants, but you can increase your chances for this type of financial aid by targeting schools that are likely to want you, rather than fighting to be admitted to a school that has plenty of other candidate choices.
It's no secret that those with a college degree are most likely to succeed in their chosen career. With so many types of financial aid available, getting money for college is more attainable than ever.
CollegeWithoutDebt.com provides comprehensive information on how to go about getting free money for college and looks at a variety of topics such as college scholarships for women and undergraduate grants.
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