Three ways you can receive financial help for college are through scholarships, grants, and student loans.
Comprehensive answer to the question
Financial aid can be crucial in helping students pay for college. There are three main ways that students can receive financial help for college: scholarships, grants, and student loans.
Scholarships are awarded based on merit, such as academic achievement or athletic ability, and do not have to be paid back. Scholarships can be awarded by colleges, private organizations, or even government agencies. According to scholarship search engine FastWeb, there are over 1.5 million scholarships available, with over $3.4 billion in funds.
Grants, on the other hand, are typically awarded based on financial need. Like scholarships, grants do not have to be paid back. The largest federal grant program is the Pell Grant, which can provide up to $6,495 in financial aid for eligible students.
Finally, student loans are a form of financial aid that must be paid back with interest. The federal government offers several types of student loans, including Direct Subsidized Loans, Direct Unsubsidized Loans, and PLUS Loans. Private lenders also offer student loans with varying interest rates and repayment terms.
According to President Barack Obama, “We can’t just keep subsidizing skyrocketing tuition; we’ll run out of money. States also need to do their part, by making higher education a higher priority in their budgets. And colleges and universities have to do their part by working to keep costs down.”
Here is a table summarizing the three main ways to receive financial aid for college:
|Type of Financial Aid||Award Criteria||Repayment Requirements|
|Student Loans||Varies||Must be paid back with interest|
- In the 2019-2020 academic year, 66% of full-time undergraduate students received financial aid in some form, according to the National Center for Education Statistics.
- According to a College Board survey, the average cost of tuition and fees at private, non-profit four-year institutions was $36,880 in the 2020-2021 academic year.
- The National Student Loan Data System estimates that the average student loan debt for undergraduate students who graduated in 2019 was $28,950.
As the quote from President Obama suggests, each stakeholder in higher education has a role to play in making college more affordable. By understanding the different types of financial aid available, students can take steps to make their education more manageable financially.
Experts suggest that May 1st, the enrollment decision deadline for many students, can be a good time to request more financial aid from schools, especially if there have been changes in the family’s financial situation or if the student has new information to share. It is important to use positive language when advocating for more aid and highlight any unique achievements or characteristics of the student. Furthermore, students should communicate with financial aid offices to gather information about other forms of aid and seek alternative options.
Other options for answering your question
Types of Financial Aid: Loans, Grants, and Work-Study Programs. Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
There are many ways to get help paying for college or career school. Options include grants, loans, scholarships, and work-study. Online tools and calculators can help you estimate how much a specific college will cost. Knowing that helps you compare schools more accurately and choose the best one for you.
College financial aid helps students and their families by covering higher education expenses such as tuition and fees, room and board, books and other coursework supplies, and transportation. There are several types of financial aid: Grants. Scholarships. Federal or private loans. Work-study and other programs.
More interesting questions on the topic
- College Savings Plans. Families can save for future college costs using a 529 plan.
- Federal Financial Aid.
- Grants and Scholarships.
- Cash From Savings.
- Work During School.
- Private Loans.
- Choosing a Cheaper College.
- Studying Abroad.
- Apply for scholarships.
- Apply for financial aid and grants.
- Consider going to community college or trade school first.
- Negotiate with the college for more financial aid.
- Get a work-study job.
- Trim your expenses.
- Take out federal student loans.
- Fill out the FAFSA.
- Contact your financial aid office.
- Appeal your financial aid award offer.
- Apply for last-minute scholarships.
- Compare private student loan lenders.
- Get a part-time job.