What Are Scholarships and Grants?
Although they are distinct terms, grants and scholarships are frequently used synonymously. Grant money is distributed according to your financial need to promote economic equity for college.
Scholarships are awarded based on performance, whether academic or otherwise, and they are offered by colleges or a variety of other organizations. Grants are seen as a type of help based on financial need, whereas scholarships are grounded on merit, but both of them are regarded as financial aid, and repayment is not necessary.
How Do Loans Work?
Loans eventually have to be repaid. Government and private loans fall into two primary kinds. The federal government frequently provides the finest loans with flexible repayment schedules and lower interest rates. Loans from the government can be either subsidized or unsubsidized. Your financial need and the Expected Family Contribution (EFC) calculated by your FAFSA determine whether you are eligible for federal loans.
How to Apply for Scholarships and Grants
Filling out the FAFSA and determining your Expected Family Contribution is the first step. Your eligibility for government assistance like the Pell Grant will be based on how much the government estimates your family's ability to spend on education. Some private need-based scholarships may ask for your Student Aid Report, also available through the FAFSA.
Additionally, several universities require the CSS Profile for students to be eligible for institutional funding. Universities use the CSS Profile to fully understand your financial need to make informed decisions while giving funds. The College Board, which manages the CSS profile, advises delivering your profile a week ahead or even with your standard application.
Because different universities cover varying percentages of documented financial needs and use various financial aid algorithms, the amount of grant money you will receive differs significantly. If you anticipate a significant need for financial aid, it's vital to consider universities that will pay 100% of your demonstrated need if you are accepted.
Along with grant aid, most universities also provide merit scholarships that, provided you maintain solid academic status, are renewable for four years. These may be awarded following your GPA, test results, extracurricular accomplishments, or other criteria. It's crucial to remember that certain highly regarded institutions, such as the Ivy League ones, exclusively provide need-based financial aid and do not give merit scholarships.
Numerous institutions offer sizable merit-based scholarships to help you have an outstanding college experience and graduate debt-free. Winners of these scholarships frequently receive special treatment during their four-year academic career, something you won't find anywhere else.
Applications for Loans
To determine your eligibility for government loans and to look into your state's student aid programs, the first step is to submit the FAFSA. Other than the regular FAFSA financial assistance application with your school, direct federal loans do not require an application.
Once you've received your package, it's time to decide whether a further private loan will be required with your family. Private loan application procedures differ significantly, so it's a good idea to consult and do your research on different private lenders.