Financial Aid
Grants
The U.S. Department of Education (ED) offers a variety of federal grants to students attending four-year colleges or universities, community colleges, and career schools. Grants are awarded to students with financial need. In order to receive any federal student aid, you have to start by submitting a FAFSA® form. You have to fill out the FAFSA form every year you’re in school in order to stay eligible for federal student aid. Once you’ve done that, you’ll work with your college or career school to find out how much you can get and when you’ll get it.
Loans
Federal Loans vs. Private Loans
Federal Loans vs. Private Loans
Federal loans are funded by the federal government, while private loans are loans made by a lender such as a bank, credit union, state agency, or a school.
Federal student loans have fixed interest rates and income-driven repayment plans, while private loans don’t typically offer theses type of benefits.
Subsidized vs. Unsubsidized Student Loans
Subsidized and unsubsidized student loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
With a subsidized student loan, the U.S. Department of Education pays for any interest accrued while you are in school.
You must be enrolled at least half-time to receive this benefit.
You’ll also get a six-month grace period after graduation, meaning that any interest that accrues during your college career and six months afterward, is completely paid for.
When the grace period ends, though, you are required to make monthly payments of principal and interest.
Subsidized loans are only available to undergraduate students.
Unsubsidized student loans, begin accruing interest from the date of your first loan disbursement, though you’re not required to pay that interest until you finish school.
When you graduate, the amount of money that accrued during your education is simply added to the principal loan amount and you begin paying off that new amount.
When taking out an unsubsidized loan you are not required to demonstrate financial need so the amount you can take out is much higher than a subsidized student loan.
Unsubsidized federal student loans are available for both undergraduate and graduate students.
Scholarships
Scholarships are awarded by colleges or organizations.
They DON'T have to be repaid.
Scholarships are awarded based upon various criteria.
In order to increase your chances of winning a scholarship, do well in school, get involved and volunteer.
You can click here and here to search for some scholarships.
Many scholarships are geared toward particular groups of people; for instance, there are scholarships for women or minorities.
And some are available because of where you or your parent work, or because you come from a certain background (for instance, there are scholarships for military families).
* Scholarship might cover the entire cost of your tuition, or it might be a one-time award of a few hundred dollars.
* Make sure scholarship information and offers you receive are legitimate; and remember that you don't have to pay to find scholarships or other financial aid.
Work-Study
Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.
If you work on campus, you’ll usually work for your school.
If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Some schools might have agreements with private for-profit employers for work-study jobs.
These jobs must be relevant to your course of study (to the maximum extent possible).
If you attend a proprietary school (i.e., a for-profit institution), there may be further restrictions on the types of jobs you can be assigned.