Grants are available through the federal government. Students must meet certain guidelines to receive the money but they do not have to repay it. Students must fill out a Free Application for Federal Student Aid (FAFSA) to determine if they qualify. Grants include the Pell Grant and the Federal Supplemental Educational Opportunity Grant, both of which are for undergraduate students.
Scholarships provide education money to students based on certain criteria. Organizations, businesses or private sponsors make scholarships available to people of particular ethnic groups or backgrounds. Other criteria for scholarships may include the student's major, the school he attends or his grade-point average. Websites that help students locate scholarships include the Federal Student Aid Website or Scholarships.com.
Families often plan for college by setting aside money for this purpose. To help them do this, tax-advantaged savings plans, known as "529 plans," are available. Known as "qualified tuition plans," 529 plans are sponsored by states, state agencies or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
Many students work their way through college by obtaining a full-time or part-time job. Most universities have a formal work-study program to help students accomplish this. These jobs, often on campus, allow students to earn money while enrolled at school to pay part of the tuition.
Most students qualify for federal government-guaranteed student loans. These loans, however, should be used only to supplement other sources of funds since loans must be repaid with interest. Candidates for student loans must fill out a FAFSA to determine eligibility. The form is available at the FAFSA website. Students may also choose to borrow from friends or family members, or take out a private loan from a bank or credit union.