The prospect of funding a college education can be a daunting task. Financial aid is definitely available, but understanding the different forms of assistance funding can be a challenge. Understanding two of the main sources of financial aid, grants and scholarships, will help make the search for college funding much easier and less stressful.
- Grants: They have one major advantage over loans i.e., they do not need to be repaid. However, the amount of money awarded is not guaranteed, and a loan might be required to pay the school bill balance.One of the fundamental education grants available to students is the Pell Grant. It is administered by the financial aid offices at many colleges, and the highest amount available for a student is $4,050. Another grant is available to students who would not be able to afford a college education. This grant is the Federal Supplemental Educational Opportunity Grant and recipients can receive an additional $4,000 applied to their school bill.
- Scholarships: They are more complicated than grants. There are many ways that they can be earned, and the amount covered can range from a small yearly payout to a full tuition payment with a small stipend on the side. Scholarships can be divided into three categories.
- Needs-based scholarships are for students who come from low-income families and would not be able to afford college without financial assistance. Charities and foundations generally administer these scholarships, and recipients need to agree to finish their degree in order to be given the award.
- Merit Scholarships are for academically gifted students and awarded based on achievement. These students might not come from low-income families but would benefit significantly from financial assistance.
- Scholarship competitions are typically organized by businesses, charities, and community organizations. The winners of these competitions are usually expected to make some public appearances with the awarding organization. Specific rules pertaining to the use of the award money might apply, and a small entrance fee for the competition might be required in order to enter the event.
Scholarships and grants can help make education economically feasible. There always remains the possibility that you might need to take out a loan in order to pay your school bill, but with the possibilities available to college students in financial aid today, financing an education is made much easier.
