It's likely people have been telling you since kindergarten that you should go to college and get a higher education. Good advice, but did they offer any suggestions on how to pay for it?
The first thing you'll notice in your college search is the hefty price tag that comes with higher education. Based on the fact that individuals with college degrees earn roughly twice as much as those that don't, the cost can be justified. If you can get others to foot the bill through college scholarships and grants, you'll have a head start in seeing the return on your college education.
If you haven't yet become familiar with the term financial aid, you soon will be. Student financial aid is money given to students to help them cover the cost of college. Financial aid comes in many forms and from many places. Once you start digging you may be surprised at how much (free) money is out there to help students out.
Merit Based vs. Need Based College Scholarships and Grants
For the most part, financial aid is based on two factors: your merit and your need.
Merit based financial aid refers to aid awarded to those who have earned it through academic, athletic, and leadership achievements among other accomplishments. Academic achievement is by far the most commonly used measure for merit based financial aid.
Need based financial aid is based on how much you really need the assistance to pay for college. Those who are financially disadvantaged have a safety net with this type of financial aid to ensure that the expense won't shut them out of earning a degree.
Types of Student Financial Aid
A financial aid package is an accumulation of all the various financial aid that you qualify for at a particular school. Any college that you have been accepted to and applied for financial aid with will present you with an award letter detailing your financial aid package. There's an informative article detailing how Brown creates financial aid packages. It will give you valuable insight into how a financial aid office approaches the process.
The following are types of financial aid you are likely to see in the package.
- College Scholarships
- College Grants
- Fellowships
- Work Study Programs
- Student Loans
The last option, student loans, is considered by some colleges to be an option that doesn't fall under financial aid. In fact, some schools, such as Princeton University, have eliminated student loans from being considered a part of their financial aid packages.
The reason people are divided on the subject is because you incur debt when using student loans for college expenses. In other words, it's definitely not free money for college.
Think you already understand how student loans work? Take the quiz and see.
The College Costs That Financial Aid Covers
One requirement of most student financial aid is that the money awarded goes to education expenses. Though there's no written rule as to everything that falls under the college cost umbrella, there are some expenses that are well established. Some of the costs that financial aid covers include:
- Tuition
- Room and board
- Books
- School supplies
- Any fees in addition to tuition
Getting the Financial Aid Search Started
If you'd like to look into financial aid to help cover the expense of college, and who wouldn't, do your research first. Just a few of the things to consider when hunting for financial aid are: who provides the financial aid, who is eligible for the financial aid, the financial aid application process, and financial aid deadlines.
You have a lot of options open to you for paying for college. You just have to identify what financial aid is going to work best for your situation and put in the work to reap the rewards.