Scholarships

• Scholarships are awards given to students to pay for educational expenses. Students do not have to repay scholarship money. Colleges and other organizations award scholarships primarily for academic achievement, but there are a number of scholarship programs for students to consider. Good grades and high college entrance exam scores are the typical qualifications needed for scholarships. Students and parents need to carefully search for scholarships that the student may be eligible to receive. In addition to scholarships directly from colleges, various community groups, employers, unions and other groups offer scholarships. Athletic scholarships are available to student athletes as well.
  
  

Grant Money

• Grants are similar to scholarships in that students do not have to repay grant money. The largest provider of grant money is the U.S. Department of Education's Pell Grant. Students can only use Pell Grants for undergraduate education costs. Students receive Pell Grants based on financial need. In order to qualify for a Pell Grant (and Department of Education Loans), students must complete the Free Application for Federal Student Aid (FAFSA). In addition to the Pell Grant, individual colleges and other organizations provide grant funding to students based on a wide variety of criteria. High school guidance counselors and college financial aid counselors may be able to assist students in finding grant money for college.
  
  

Government Loans

• The U.S. Department of Education provides loans to students for higher education. There are two different types of loans offered by the Department of Education: subsidized and unsubsidized loans. Basically, with the subsidized loan the interest on the loan does not begin to accrue until after the student graduates or otherwise leaves school. With the unsubsidized loans, the interest begins accruing immediately. This makes the subsidized loans significantly less expensive. The Department of Education provides a number of options for the repayment of student loans, including loan forgiveness for public service in some situations.
  
  

Private Loans

• Though private loans have more stringent lending guidelines and carry higher interest rates, there are a number of lenders that provide educational loans to students and their families. Students borrowing money from private lenders need to carefully consider the terms of the loans, including when repayment begins and the calculation of loan interest. As private loans are typically the most expensive way to pay for school, students should use these loans only when absolutely necessary.