Finding Money for College

See Hispanic Scholarship Information: In English | In Spanish

Finding funding for education may seem like a daunting task, but knowing where to look, and what to look for, makes the process manageable and well worth the effort. The U.S. Department of Health and Human Services offers the following information to help students seeking funding for their college education.

Understanding the funding lingo. According to the web site collegeboard.com, there are three primary types of financial aid.

• Grants and Scholarships - Also called gift aid, grants do not have to be repaid and you do not have to work to earn them. Grant aid comes from federal and state governments, from individual colleges and universities and private organizations. Some grants and scholarships are awarded based on merit rather than need.
• Loans - More than 60 percent of financial aid comes in the form of loans, which is aid that must be repaid. Most loans that are awarded are based on financial need, and are low interest loans sponsored by the Federal government. These loans are subsidized by the government so no interest accrues until you begin repayment after you graduate.
• Work Study - Student employment or work-study aid allows you to earn money to help meet education costs such as books and supplies, and personal expenses.

Funding for education can come from Federal, state, local governments, foundations, businesses, and associations. Combining these sources is the best way to cover educational expenses for the college-bound.

Most funding for college comes from the Federal government, and as a result, many colleges and universities require students to complete the Free Application for Federal Student Aid (FAFSA) in conjunction with the school's request for aid forms.

Colleges offer a variety of funding from their own financial resources, including grants, merit scholarships, student job programs and low-interest loans. Students should be sure to check with the college financial aid administrator about programs for which they may qualify. Although, some aid is need-based, college awards often recognize academic achievement or special talent. Many schools also have funding to support specific fields of study.

Individual states offer financial aid as well. The FAFSA is used to apply for most state loan, grant, and scholarship programs. When the FAFSA is submitted to the U.S. Department of Education, it forwards the information on the form to the state student assistant agency.

Financial aid is also available for those who are interested in pursuing careers in the military, and for veterans and their dependents. The U.S. Armed Forces offers several programs to provide students with money for school. These programs include the Montgomery GI Bill, Army/Navy/Marine Corps College Funds, ROTC Scholarships, and U.S. Service Academies.

Funding for education can also come from other sources such as corporations, professional associations, unions, religious groups and other "private" organizations. They award scholarships to students based on a wide range of qualifications, including need, heritage, and talent - whether it be artistic, athletic, scientific or something else. Although these types of awards make up one of the smallest sources of financial aid, they can still make a difference in affording college. A good web site to search for private scholarships is fastweb.com.