Financing a college education can be overwhelming, but there are many options available to make it more manageable. Understanding the differences between scholarships, grants, work-study jobs, and loans can help you choose the best fit for your financial situation.
Scholarships
Scholarships are offered by nonprofit and private organizations to help students pay for college or career school. This type of financial aid is often based on academic merit, talent, or a particular area of study, and does not have to be repaid. Applying for scholarships can help you reduce the amount of money you need to borrow to pay for your education.
Grants
Grants are another form of financial aid that does not need to be repaid. Most grants are need-based and awarded based on your or your family’s financial situation. By completing the Free Application for Federal Student Aid (FAFSA), you can determine if you are eligible for federal or state grants.
Work-Study
The Federal Work-Study Program is a form of financial aid that allows you to earn money to pay for school by working part-time. You can earn at least the current federal minimum wage, and potentially more depending on the position and your skillset. Your total work-study award depends on when you apply, your level of financial need, and your school’s funding level.
Loans
Loans are money you borrow and must pay back with interest. When you receive a student loan, you are borrowing money to attend a college or career school, and you must repay the loan as well as the accrued interest. Federal student loans often have lower interest rates and more flexible repayment options compared to private student loans.
It is important to understand your financial aid options and create a plan to pay for your education. By researching and applying for scholarships, grants, and work-study jobs, you can reduce your need to borrow money to pay for school. When you do need to borrow, make sure to compare and understand your loan options and choose a repayment plan that works for your budget.
