Paying for college can feel overwhelming. But it’s not usually the actual cost that makes people give up before they even begin. It’s the whole process.
And it’s no wonder. Applying for college, submitting forms for Financial Aid, and figuring out what you actually need to pay isn’t the most linear process and involves complex terminology that everyone expects you to understand but nobody really explains.
So we’re here to help. Here are the primary ways people pay for college, along with the terms you need to know to get through the process.
Ways to Pay for College
Grants: Grants are funds for college that do not have to be repaid. They are given out based on financial need. The money may come from the federal government (like the Pell Grant), your state government, or even your institution. No matter where the money comes from, you apply for grants by filling out the Free Application for Federal Student Aid (FAFSA) and having the results sent to the college or university you plan to attend. They will use the information to figure out what grants you are eligible for and coordinate the receipt of the money on your behalf.
Scholarships: Like grants, scholarships do not have to be repaid. They’re free money. A scholarship is granted by an organization outside of your college Financial Aid office and, unlike grants, scholarships are typically competitive – meaning your application is being compared to those of other applicants to decide who gets the award. Some scholarships may take financial need into consideration, but they are mostly targeted to specific majors, demographics, hobbies, or academic achievement. For example, one scholarship may target single mothers pursuing a nursing degree. Other scholarships may require a minimum GPA or only consider first-generation college students. The number of scholarships available is vast. The biggest challenge of getting scholarships is that it takes work to research options you’re eligible for and apply for them each individually. The benefit? Free money, of course! We’re currently in the midst of scholarship season; get tips on applying here!
Student Loans: There are two types of student loans: federal and private. Both need to be repaid when you stop attending school (whether you graduate or not). Federal student loans are backed by the government and may be subsidized (interest does not accrue while you’re in school) or unsubsidized (interest accrues while you’re in school). You apply for federal student loans by filling out the FAFSA. Many students don’t believe they’ll be income-eligible for grants so they don’t fill it out; this is a mistake as it’s also necessary to get federal loans. Federal student loans do not look at your credit score or history and do not require a co-signer, and the interest rate is set by Congress. Private student loans are issued through a financial institution like a bank. They DO consider your credit score, may require a co-signer if you don’t have a credit history, and interest rates are typically much higher. Be aware that private student loan programs are generally not subject to federal orders around student loans (like forgiveness programs or temporary payment forbearance).
Work Study: Work study is a type of Financial Aid award that allows you to work and get paid. You can use this money to buy books, pay your tuition, apply toward your loans, use it for living expenses – there are no limitations! A work study award is not a guarantee of employment, but a notice that you’re eligible for these specific types of funds and can apply for a work study job. There are usually many work study jobs on or off campus and your institution’s work study office can help you find one. You apply for work study funds by – you guessed it! – filling out the FAFSA. Eligibility for work study is based on financial need.
Don’t let the prospect of figuring out how to pay for college sideline you from attending college. Take it one step at a time – and, most important of all, fill out that FAFSA!
Northwest University is committed to offering the best academic experience for both in person and online learners. With traditional programs as well as flexible online learning options, there are plenty of options at Northwest University – many of which are specifically geared toward nontraditional adult learners. Undergraduate and graduate programs are available, most of which can be designed to work with any student’s schedule. Learn about all the academic options Northwest University offers and request more information today!
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