Advice On Getting Financial Aid For Your College Education

by SuzyQ

posted on 08/24/2009

It's no secret that a college education is expensive. Costs are rising exponentially to the point where the average person can't afford to pay $20,000, $25,000, $30,000 or more for tuition and housing at the more prestigious colleges and universities around the country. Even some of the less expensive state schools are expensive propositions, with tuition, room and board running up into the double digits. Even a community college education is getting more expensive. So how do smart folks like you swing these hefty payments? They look into financial aid opportunities and take advantage of whatever opportunities for which they qualify.

Types of Financial Aid
There are many types of financial aid available and sometimes one needs to be a wiz to understand how they all work. There are direct loans, there are grants, there are scholarships and there are work/study programs, among others. Each type of financial aid has its own requirements and restrictions, and most of them require a lot of paperwork to be filled out in advance of offering any money.

Loans
Loans fall into two major categories: Student loans which are awarded directly to the student and parent loans which are awarded to the parent. Both student and parent loans must be paid back, with interest, on an agreed-upon schedule. Most students take advantage of low-interest student loans and their generous repayment terms.

Scholarships
Scholarships are given to students based on differing criteria. In some cases, the high school may administer the scholarships, in other cases, it is the college itself that awards scholarships to the students who apply and meet their criteria. Other scholarships may be given out by public or private individuals, corporations or non-profit organizations. Not everyone may be eligible for a scholarship. Some are based on academics, i.e. a high grade point average, or exceptional work in a particular field of study. Some are based on community service, i.e. because of volunteer work that a student has done. Other scholarships may be given out because a parent is in the military, or because they belong to a particular church. There are hundreds, if not thousands of scholarships available and many of them go unfilled because students are not aware that they exist. The good thing about scholarships is that they do not need to be repaid.

Grants
Grants are considered need-based scholarships which are awarded based on your financial situation. Although most grants do not need to be repaid, some of them come with hefty restrictions. If you are awarded a grant, make sure you understand the terms before you accept their conditions.

Work/Study
Work/study opportunities provide students with a certain amount of money toward their tuition, books, or housing, in return for a dedicated schedule of work in one of the campus departments or an off-site satellite center. Students are awarded a lump sum and each week they put in a certain number of hours and receive pay from that lump sum. If they don't work, they aren't paid.

The best way to find out about available scholarships is to visit with a guidance counselor at the high school, or with a financial aid counselor at the college or university you are interested in attending. They will be able to provide you with the types of scholarships, loans, grants or work/study opportunities that exist. The most important thing to remember is that if you are applying for financial aid from the government, then a "Free Application for Federal Student Aid" (FAFSA) form must be submitted.

Most students who apply for financial aid are approved, so if your upcoming college debt seems unmanageable, then don't wait to apply. Do it today!

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