Old Glory Bank
By Old Glory Bank

Published: July 2, 2024

Higher education isn’t necessarily for everyone, but it’s becoming an increasingly common option for high school graduates to pursue as a means to start a career. Despite the rising costs, it's important to remember that there are numerous scholarships available, making this journey more accessible and less daunting.  

Scholarships: Merit-Based Aid 

Scholarships are a form of financial aid awarded to students who have excelled in any number of different fields. Students can receive scholarships for anything from athletic to artistic achievement. Scholarships are not loans, so they do not need to be repaid.  

Types of Scholarships 

  1. Academic Scholarships: Awarded based on academic performance, such as a high GPA or standardized test scores. The cutoff for these scholarships can vary widely by school and organization.
  2. Athletic Scholarships: Given to students who excel in a particular sport and are committed to play for that school’s college team.
  3. Arts and Talent Scholarships: For students with exceptional skills in the fine arts, such as music, theater, photography, etc.
  4. Community Service Scholarships: Awarded to students who have demonstrated a strong commitment to service and volunteer work.
  5. Corporate Scholarships: Provided by businesses and corporations to support students, often within a specific field of study.
  6. Miscellaneous Scholarships: These scholarships don’t neatly fit into the other categories. They can aid excellent students in particular circumstances, like excellent students who have family members with dementia.  
  • Tips for Applying 

The rest of the college application process is already frantic enough, so give yourself the time you need to give the scholarship search its due diligence.

Record all of your various deadlines to ensure you don't miss crucial applications.

Don't just have a blanket essay that you use for every application. Adjust your application material to fit with the specific strengths that each scholarship is searching for.

There is a wealth of scholarships available, whether they be small or large, through a specific school, through another organization, etc. Thousands of scholarships are available that aren't immediately obvious, so use the internet and other tools available to find ones you can apply for.


Grants: Need-Based Aid 

Grants are another form of financial aid that doesn’t need to be repaid. Instead of being awarded based on exceptional performance, they are awarded purely on the student's financial need. This means that not every student can qualify for them. 

Types of Grants 

  1. Federal Pell Grants: Offered by the federal government to undergraduate students who have demonstrated significant financial need.
  2. Federal Supplemental Educational Opportunity Grants (FSEOG): These are reserved for students with even more financial need and are awarded on a first-come, first-served basis.
  3. State Grants: Similar to Federal Pell Grants, but are awarded by individual states with more variance in eligibility criteria and award amounts.
  4. Institutional Grants: These are awarded by individual colleges and universities to help cover the cost of attendance for students with financial need. 

Tips for Applying 

The Free Application for Federal Student Aid is essential for determining eligibility for federal and state grants, so be sure to complete it as soon as possible to have a solid understanding of where your eligibility for grants stands.

Ensure all of your applications are submitted by the given deadlines to maximize your chances of receiving aid.

Different institutions have different policies regarding need-based financial aid, so pay attention to whether you'll be eligible for aid at a given school.

Student Loans: Borrowing for Education 

Student loans are a common way to finance higher education, but they must be repaid with interest. They’re very useful for many students whose families don’t quite qualify for need-based aid but who also won’t qualify for many merit-based scholarships. 

Types of Student Loans 

  1. Federal Student Loans: Offered by the federal government with fixed interest rates and various repayment plans.
  2. Direct Subsidized Loans: For undergraduate students with financial need. The government will pay for accrued interest while the student is still in school.
  3. Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students regardless of financial need. The government will not pay for accrued interest while the student is still in school.
  4. Direct PLUS Loans: These are for graduate students or parents of undergraduate students to cover additional educational costs.
  5. Private Student Loans: Offered by private lenders and often have variable interest rates and less flexible repayment options. 

Tips for Borrowing 

Calculate the total cost of attendance and borrow only what is necessary to cover those expenses to avoid paying extra interest over-time.

Familiarize yourself with interest rates, repayment plans, and borrower benefits. For more information on these terms, check out our blogs on credit and debt.

Federal loans typically offer more favorable terms and protections, so it's beneficial to prioritize them.


Work-Study Programs: Earning While Learning 

Work-study programs provide part-time jobs for students with financial need, allowing them to earn money to help pay for college expenses. These jobs are frequently on-campus and related to the student’s field of study. 

Benefits of Work Study 

  1. Flexible Hours: Work-study jobs are designed to accommodate a student’s class schedule, so the hours are very flexible.
  2. Relevant Experience: Students can gain valuable work experience in a field related to their academic interests.
  3. Reduced Loan Debt: Money earned through work-study is money you don’t need to take out in a loan. This means that students can avoid more debt. 

Tips for Finding Work-Study Jobs 

  1. Check with Financial Aid Office: The college’s financial aid office can provide information on available work-study positions and will point you in the right direction.
  2. Apply Early: Work-study funds are limited, so apply as early as possible to secure a position. 

Conclusion 

Financing higher education can be daunting, but as long as you’re aware of the costs ahead of time, several options are waiting to be pursued that can help.  Look out for scholarships that suit your talents and abilities, seek financial aid, when possible, take out smart loans, and pursue student work to help reduce debt. Finances can be a major factor when deciding what college to attend, so be sure to seek out every option each college has available. 

 
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