Students who fill out the FASFA form will be considered for a Pell Grant. This type of aid is based entirely on your income or the income of your parents if you are considered a dependent under FASFA guidelines. Your award amount is determined through a formula which is applied equally to all applicants. Pell Grants are typically awarded to undergraduate students or those students who have not yet earned a bachelor's degree. Most Pell Grants are awarded to full-time students. The Pell Grant is not a loan, so the student does not have to pay it back.
Most scholarships and fellowships are awarded based on a combination of financial need and merit, in both academics and extracurricular activities. Some scholarships are awarded to members of specific minorities and ethnic groups. For example, many students play high school sports or music in the hopes of being awarded a scholarship to participate in that activity for a college. In that case, it is the college who is offering the scholarship. Other scholarships and fellowships are sponsored through public and private organizations, such as the Boy Scouts of America, various unions, civic groups or private employers for members and employees of those organizations. Many ethnic organizations sponsor scholarships for their members. Scholarships are also offered by professional organizations in order to increase the number of college graduates in a particular area. One example is special scholarships for students who intend to teach high school. Recipients of this type of scholarships are often required to work in the specified field for an agreed upon number of years. To apply for scholarships, the student must fill out the application and meet the academic and extracurricular requirements of the sponsoring organization.
Federal student loans are backed by the United States government. The interest rate and fees for federal student loans are determined by federal law. The student must begin paying back the loan within a set period of time after graduation or risk going into default. You can apply for a federal student loan on the FASFA, the same form used for the Pell Grant.
Private loans are obtained through a bank. Students apply with the financial institution and must meet the requirements of that institution. Terms, interest rates and fees are determined by the lending financial institution. This is the least common way to finance a college education.
Many young people enter a branch of the United States Military in order to obtain financial assistance with a college education when they leave the service. Anyone who completes four years of service in the U.S. military receives money for college through the Montgomery G.I Bill. This benefit covers approximately three-fifths of the cost of a college education. There is also federal financial aid for military veterans and their dependents, available by filling out the FASFA form.
Work-study is another good option to help fund college. The student works for the college part-time in return for an hourly rate of pay. Many schools reserve specific jobs, such as computer lab assistants, library aides or cafeteria helpers, for work-study students. Some jobs, like a lab assistant, are dependent on the student's major. There are two ways to apply for work-study: request to be considered for work study on the FASFA or inquire directly with the college financial aid office.