College Grants
Unlike federal loans and private loans, scholarships and/or college grants are considered "free money" because they don't have to be repaid. Grants come from the federal and state government, as well as colleges. Federal work-study programs, on the other hand, give students a paid job while they are in school.
Since financial aid is based on economic need, many families do not even apply for it, believing they make too much money to qualify. But you may be eligible for more financial aid than you think. According to the College Board, a not-for-profit association best known for their SAT (scholastic aptitude test) and Advanced Placement (AP) programs, more than half of college students currently receive some type of financial aid. Below are the main categories of other financial aid sources.
Federal grants are needs-based monetary awards for students (usually undergraduates). The school either credits the grant money directly to the student's account or sends the student a check. Some common federal grants include:
- Federal Pell Grants: awards range from $400 to $4,050
- Federal Supplemental Educational Opportunity Grants (FSEOGs): awards range from $100 to $4,000
Private grants come from non-government institutions, such as corporations, professional organizations or church groups.
State grants are student financial aid awarded by each individual state. Again, this money does not need to be repaid.
Scholarship money is usually awarded based on academic requirements or a student's special skills (athletic, artistic, etc). Each scholarship is unique, but the money is usually awarded directly to the student.
Federal work-study are campus-based programs that provide jobs to students with financial need. Students can work on or off campus, and the work usually relates to community service for the students' course of study. While all work-studies are different, here are few aspects they should all have in common:
- Earn at least the current federal minimum wage or higher
- School pays student directly at least once a month
- Total amount earned/hours worked are based on student's total federal work-study award, which is determined by the school
To apply for any of the above forms of financial aid, you must complete a FAFSA.
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Now that you understand the other type of aid outlined in College Grants | Learn About College Grants, learn about Federal Loans.