Grants are, without argument, one of the best ways to get money for college. Unlike loans, grant money is something that you won't have to pay back. Grants are given to students based on need, and usually on a first-come, first-served basis. In order to ensure that you are in the running for a grant, it is important to apply for financial aid as early as possible. There are four main types of grants, and as a student applying for financial aid you are in contention for all of them. The Federal Pell Grant is a need-based grant. Students who receive Pell Grants who are majoring in math, social science, or science are also eligible for the Academic Competitiveness Grant and the National SMART Grant. The Federal Supplemental Education Opportunity Grants range from $100 to $4,000 per year and are reserved for students who need financial aid the most. State grants are handed out on a state-by-state basis and can be allotted based on financial need or as incentives to study a certain major. Institutional grants are allotted by the college you are going to and can be handed out on a need or academic competitiveness basis. Usually, you don't have to apply for these grants, the school will offer them as an incentive to attend the school.
Scholarships are often offered by a college or university to attract academically rigorous students. In order to get a scholarship from a college, you must have records of high achievement such as grades, academic accomplishments and high SAT or ACT scores. Some scholarships require an application essay or a letter of recommendation from a teacher, so make sure to check your school's website for information about applying to scholarships. Many students, however, make the mistake of only applying to scholarships at their colleges. Large companies such as Microsoft and Google also offer scholarships to students looking for financial aid. For information about how to apply for scholarships outside of your school, visit the website FinAid.
Unlike scholarships and grants, loans aren't free money. When you take out a loan you will be required to repay the loan, usually within 10 years of graduating. The Perkins Loan is a campus-based loan and one of the most common loans offered to students. With a 5 percent interest rate as of 2011, the most money you can borrow is $4,000 per year for undergraduate students. The Stafford Loan is offered through a private lender or directly from the U.S. government. Stafford Loans are unique because they are generally subsidized -- the U.S. government pays the interest while you are in school. These loans generally have a fixed interest of 6.8 percent as of 2011.
The Federal Work Study Program provides undergraduate students with jobs, allowing them to earn money to help them pay for the education. Work Study programs are offered in numerous departments and are designed to accommodate student needs.