Paying for College

Some s cholarships are  merit-based, meaning that they are earned by meeting or exceeding standards set by the scholarship giver, whether t hese standards deal with academic achievement, special talents or skills, interests, or some combination thereof.  Other scholarships are  need-based and are rewarded based on financial need of the student.
There is a wide variety of scholarships available, so chances are you qualify for one.  Many scholarships target particular groups of people, such as women, high school seniors, or military families.  Scholarships can also differ in how much is offered.  The offer might be for the entire cost of tuition or it might just be a one-time award of a few hundred dollars, but either way, it is worth applying for, since it will help reduce the cost of your education.

There are many places to find scholarships.  When looking, remember that you don’t have to pay to find scholarships or other financial aid.  Here are some free sources to check out:

  • Types of Federal Student Aid
  • Other federal agencies
  • A college or career school   financial aid office
  • A high school or   TRIO (a Federal outreach and student services programs designed to identify and provide services for individuals from disadvantaged backgrounds) counselor
  • Your   state grant agency
  • The U.S. Department of Labor’s   free scholarship search
  • Your library’s reference section
  • Foundations, religious or community organizations, local businesses, or civic groups
  • Organizations (including professional associations) related to your field of interest
  • Ethnicity-based organizations
  • Your employer or your parents’ employers
  • The   Federal Student Aid Information Center

Information on deadlines, applications, and accepting offers should be given by the scholarship provider.

Grants are usually need-based and can come from the federal government, your state government, your college or career school, or a private or nonprofit organization.  The U.S. Department of Education offers the following grants:

In order to get a grant, you must start by filling out the Free Application for Federal Student Aid.  After that, you can work with your school to find out how much you can get.

A loan is money you borrow and pay back with interest and can come from the federal government or from banks and financial institution.  Make sure you understand the terms and conditions of the loan.  Loans from the federal government, called federal student loans, usually have lower interest rates and more flexible repayment options than private sources.
To apply for a federal student loan, fill out and submit a FAFSA.  Your school will send you a financial aid offer based on the results of your FAFSA which may include federal student loans.  To receive your loan funds, you will be required to complete   entrance counseling and sign a Master   Promissory Note (MPN).  You can contact the financial aid office at your school for more information regarding the process at your school.
There are two federal student loan programs offered by the U.S Department of Education:

  • The William D. Ford Federal  Direct Loan Program.  Under this program, the U.S. Department of Education is your lender.  There are four types of Direct Loans available:
    • Direct Subsidized Loans:  Loans made to undergraduate students.  Financial need must be demonstrated.
    • Direct Unsubsidized Loans : Loans made to eligible undergraduate, graduate, and professional students.  Financial need does not need to be demonstrated.
    • Direct PLUS Loans :  Loans made to graduate or professional students and parents of dependent undergraduate students.  These loans help pay for education expenses that are not covered by other financial aid.
    • Direct Consolidation Loans :  Loans which allow you to combine all of your eligible federal student loans into a single loan with a single   loan servicer .
  • The  Federal Perkins Loan Program.  This program is school-based and awarded to undergraduate and graduate students with exceptional financial need.  Under this program, the school is the lender.
If you are an undergraduate student, you can borrow up to $5,500 per year in Perkins loans (depending on your financial need, the amount of other aid you receive, and the availability of funds at your school) and $5,500 to $12,500 per year in Direct Subsidized Loans and Direct Unsubsidized loans (depending on factors such as your year in college.)
If you are a graduate student, you can borrow up to $8,000 per year in Perkins Loans (depending on your financial need, the amount of other aid you receive, and the availability of funds at your school) and up to $20,500 per year in Direct Unsubsidized Loans and the rest of your college costs (not covered by other financial aid in Direct PLUS Loans).
If you are a parent of a dependent undergraduate student, you can borrow the rest of your college costs (not covered by other financial aid in Direct PLUS Loans). 

*Note for PLUS loans, a credit check is required.
When you take out a loan:
  • Keep track of what you are borrowing
  • Understand the terms and conditions of your loans
  • Keep copies of your loan documents
  • Make payments on time
  • Keep in touch with your loan servicer

Federal Work-Study provides part-time jobs for undergraduate, graduate, and professional students with financial need to help them earn money to pay for education expenses.  The program encourages employment in civic education or work related to your course of study.
If you are an undergraduate, you are paid by the hour.  If you are a graduate or professional student, you are either paid by the hour or by salary.  Your school must pay you at least once a month and must pay you directly unless you request the school send your payments directly to your bank account or use the money for education-related institutional charges.  Note: The amount of money you earn cannot exceed your total Federal Work-Study award (which will depend on when you apply, your level of financial need, and your school’s level of funding).
Jobs may be on or off campus.  If your employment is on campus, you will likely work for your school.  If your employment is off campus, you will likely work for a private nonprofit organization or public agency (the work must be performed in the public interest).