If you’ve visited a college campus, it’s likely you’ve seen hundreds of students walking around on their way to class or to study somewhere. Have you ever thought about how they are managing to pay for the education they are getting? Not all of them come from rich parents that have enough money to pay tuition, books, living expenses and more. Actually, most of them are paying for college on their own using student loans, scholarships, and school grants.
The government and financial institutions such as banks give students loans to help people gain a college education. Loan amounts are based on how much a school costs and the financial history of the student and parents. These loans must be paid back, but it’s not usually until after graduation. Interest rates can be high, but the government has student loan opportunities with low interest rates. You can find out more about these government student loans by visiting StudentLoans.gov.
Scholarships are a lot like loans, but they don’t have to be paid back. Many students receive scholarships from the college they attend, organizations, and associations. Scholarships are often based on academic performance in high school or college and financial need. All of the money awarded in a scholarship must be used to pay for college costs, and any money left over is often sent back. To receive a scholarship, students must apply with information about the school they want to attend, financial documents, and an essay. The best way to find out about available scholarships is searching online or contacting your financial aid office at your school.
A school grant often comes from non-profit organizations. It is tax exempt, which means you don’t have to claim it on taxes, as you would with income. Grants often come with expectations such as the student must complete a degree program in a specific discipline to keep the money. Many grants are awarded to people who have been in natural disasters, come from a difficult home life, are a minority, or want to enter a field of work that suffers from a lack of employees.
What’s the Best Way When Paying for College?
Paying for college can be difficult. Many students have to consider the scholarships and school grants they receive, how much they can pay out of pocket, and then how much more money they need through student loans. It can get confusing, as students try to figure out how to suffice all of the requirements. The best advice any student can get about paying for college is to seek as much “free money” as they can, and then utilize student loans sparingly. With so many scholarships and school grant opportunities available, many students can receive an award that could pay most, if not all, their tuition. Since none of the money needs to be paid back, it’s a better situation to be in than graduating with tens of thousands of dollars in debt to start off with in the real world.