Financial Aid for Every Student
Financial aid is available in several different forms, including scholarships, grants, and loans. Military students also benefit from the Post 9/11 GI Bill. The following is a quick guide to the financial aid options available.
Scholarships
Scholarships may be provided by the school or by a third party. They typically involve the student meeting certain criteria (grade point average, ethnicity, type of major, hobbies, etc.) and writing an essay. Essays are judged and then the scholarships are divvied to the students that show the most need and academic potential. Scholarships do not need to be paid back.
Grants
Grants, like scholarships, do not need to be paid back; unlike scholarships, however, they only require the FAFSA to apply. Grants are awarded based on financial need and require a certain academic standing. Every state has different grant programs available. Grants are typically available only if the FAFSA is filled out early.
Loans
Loans come in the form of government loans and private loans and take on the names “subsidized” and “unsubsidized.” The best loan is a subsidized government loan, which accrues no interest and does not need to be paid back until the student graduates. Unsubsidized loans, by contrast, accrue interest immediately and are capitalized, meaning you pay interest on your accrued interest. One way to avoid interest from getting out of hand with an unsubsidized loan is to pay the interest as it accrues while in school. Private loans are typically unsubsidized. Undergraduates have better loan options available than graduates.
Military Aid
The Post 9/11 GI Bill and the Montgomery GI Bill cover part of the expenses of living and school for military students, whether they are active duty, reserve, or veterans. The Post 9/11 GI Bill even offers financial aid to the military member’s spouse or child if they are on active duty for several years. To learn more about the military financial aid benefits available, visit the U.S. Department of Veteran Affairs’ website.
Paying Back Loans
Scholarships, grants, and military GI Bills are awarded to the student, but loans inevitably have to be paid back. Here are some things to keep in mind when thinking about repayment:
- Students are given a 6 month grace period after graduating to find a job.
- Students that have a lower income than debt accrued may apply for IBR, or Income-Based Repayment; this can sharply reduce the amount of money available to loans. (IBR is only available for government loans.)
- Students may apply for hardship during the life of the student loan if they are unable to pay for the loans accrued.
Most financial advisors suggest that students should only pull out what they think they can afford; a student attending a private college for a Fine Arts degree may have difficulty paying off the debt for many, many years. There are financial aid options for every student. Let the financial advisor at your future school aid you with the financial aid paperwork required, such as the FAFSA.