Financial Aid Options
Financial aid options for college come in many forms. Whether you’re a first-time student or a professional ready to change careers, it’s important to research the resources available to you in order to earn your degree without breaking the bank. Once you do, you’ll be sure to find support that suits your needs.
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Financial Aid Information
Financial aid for students usually comes in three formats: scholarships, grants, and loans.
Scholarships
What are they?
Scholarships are gifts of money you don’t have to pay back. They can be granted by any number of benefactors, including the government, corporations, non-profit organizations, and universities. Scholarships are often merit-based, awarded to students who prove exceptional in a certain area. For example, scholarships are often awarded based on high GPAs, fine arts talent, or stellar writing skills. Sometimes scholarships are also given based on other factors such as heritage, gender, or interest in a certain academic program.
Benefactors often consider the scholarships they award as investments. Therefore, if you are a a scholarship recipient , you will likely have stipulations for your award. For example, you might be required to maintain a certain GPA or participate in a service program after you graduate. Failure to do so may mean losing your aid.
Who can get one?
Scholarship recipients must usually meet a certain profile or excel in a certain area of study. Because so many types of scholarships exist, it’s easy to find one that fits your identity, interests, or profession. It is important to exercise due diligence when you research. Instead of applying for every scholarship you find, make sure to pursue scholarships that speak to your character and your goals.
What else do I need to know?
Scholarships (as well as grants) can impact your taxes, other forms of financial aid, and your acceptance into school.
If you simply use your scholarship to study, research, or to pay your school expenses, the award amount isn’t taxable. However, scholarships (and grants) may be taxable if:
- You are a non-degree student and your aid was provided to help you with general living expenses
- The grantor of your aid requires that you perform services in return for their money
- You are required to study, research, or do other activities for the benefit of the entity that is providing your financial aid
- The grantor of your aid requires that you perform past, present, or future services for them as a condition of their assistance
- Whatever services you perform are subject to the direction or supervision of the entity that provided you with aid
Scholarships may also affect your amount of financial aid. Depending on several factors, scholarships can count toward your overall assets, meaning that other aid opportunities may decrease in turn. The positive side of this is that schools prefer candidates who have already received scholarships. Scholarships both demonstrate exceptionalism and decrease the financial aid colleges themselves must offer.
Examples of Scholarships
Here are just a few examples of scholarships available to online students:
Mark Beaumont Scholarship Fund
Offered by the Academy of Interactive Arts & Sciences Foundation, the Mark Beaumont Scholarship offers $2,500 to students who are pursuing careers specializing in the business of interactive entertainment. Categories of study may include executive leadership, marketing, public relations, and business.
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Consuelo W. Gosnell Memorial Scholarship
This scholarship is available for students pursuing a Master of Social Work degree who have demonstrated a commitment to working with, or who have a special affinity with, American Indian/Alaska Native and Hispanic/Latino populations. Recipients can receive up to $4,000. Applicants must submit an application, a biographical essay, and two letters of support from professional references, among other materials.
Tylenol Future Care Scholarship
This one-time scholarship of up to $10,000 is awarded to promising individuals who are currently studying nursing, health education, medical school, public health, or pharmacy. Applicants must submit transcripts and essay content, among other materials. The scholarship is given to students and practitioners who are seeking a degree to actively treat patients.
- Peterson’s
- Unigo
- Fastweb
- Scholarship Monkey
- College Board
Additionally, it’s helpful to check with your college to check your financial aid eligibility.
Learn more about scholarships for online students.
Grants
What are they?
Similar to scholarships, grants are also gifts of money that don’t require repayment. Like scholarships, they can be given in support of specific groups, such as those of a certain profession or culture. However, while scholarships are usually rewarded based on merit, grants are offered based on need. Common sources of grants include private and public organizations, academic institutions, and government aid programs.
Who can get one?
Anyone who demonstrates sufficient financial need can receive a grant. You must additionally meet any requirements set by the grant’s provider.
What else do I need to know?
One of the best ways to understand your grant eligibility is by filling out the Free Application for Federal Student Aid, or FAFSA. The lower your Expected Family Contribution (EFC), the more aid you are eligible to receive.
When you fill out your FAFSA, you will be able to calculate your EFC. This number takes into account your family’s untaxed income, assets, and benefits. It also considers your number of family members and the amount of people in your family in college at the same time.
The EFC is found using three versions of a formula that is established by law. This formula considers:
- Dependent students
- Independent students without dependents other than a spouse
- Independent students with dependents other than a spouse
It is possible that you may have to repay a federal grant in certain circumstances.
These include:
- If you receive a grant for a specific program but withdraw from that program early
- Your enrollment status changes in a way that harms your eligibility for your grant
- Outside scholarships or grants reduce your need for federal aid
Examples of Grants
Common federal grants include:
Pell Grants
Federal Pell Grants are awarded to undergraduate students who have yet to earn a bachelor’s, graduate, or professional degree and who show exceptional financial need. All students who show need receive this aid.
Federal Supplemental Educational Opportunity Grants
Federal Supplemental Educational Opportunity Grants are also for students who show significant financial need. To receive this aid, you must attend a participating college or university.
Teacher Education Assistance for College and Higher Education (TEACH) Grants
TEACH Grants offer up to $4,000 a year of students who will enter the teaching field. Recipients must be willing to teach in a high-need field, serve students from low-income families, and teach for at least four academic years within eight years after completing their course of study.
Learn more about grants for online students.
Loans
What are they?
- Need-based loans are offered when the amount a student is able to contribute is less than the cost of college attendance. They are provided on both the federal and institutional levels.
- Non-need-based loans are also offered at the federal and institutional levels. They are calculated based on the difference between your school’s cost of attendance and the total amount of aid you’ve received.
- State loans are those are offered by your state. Although each location varies in their criteria, you must either be attending school or living in the state from which you receive your aid.
- Private loans may be offered by banks or other financial institutions. They are generally more expensive and don’t always come with the benefits that federal loans do, such as deferment or subsidization.
Who can get one?
Criteria for getting a student loan can vary based on where you borrow.
- U.S. citizenship
- Demonstrated financial need
- Credit score
- Income
- Debt-to-income ratio
- Academic enrollment
- Academic progress
What else do I need to know?
Loans can be tricky to navigate and expensive if they get out of control.
- Some federal loans will let you defer, allowing you to postpone payments until after graduation. Taking this option is smart. It gives you the opportunity to study worry-free and pay back your loans when you’ve secured a job after school.
- Be aware of interest rates. Interest is the cost associated with the act of borrowing money. It is calculated by taking a percentage of your loan and adding it to how much you’ve borrowed. The higher the interest rate, the more you’ll owe as time goes on. For context, federal interest rates range 5.05–7.6%.
- Subsidized loans are also a good choice. “Subsidization” in this context means that while you’re in college, the government pays the interest on your loans so you don’t have to.
Need-based loans are often the best option for students. This is because they normally provide a combination of all three factors above. They commonly let you defer, offer low interest rates, and are subsidized.
Examples of Loans
- Direct subsidized loans. Available to undergraduate students who show financial need. They help cover the cost of higher education at either a career school or college.
- Direct unsubsidized loans. These are provided to students at the undergraduate, graduate, and professional levels. Eligibility isn’t based on need.
- Direct PLUS loans. Provided to graduate students, professional students, and parents of dependent undergraduate students. PLUS loans are specifically offered to pay for expenses not otherwise covered by a students’ financial aid. PLUS loan applicants must complete a credit check.
- Direct consolidation loans. These allow you to combine various loans into one.
Learn more about loans for online students.
Financing Your Future
Navigating the world of financial aid options for college can be challenging. Luckily, many schools have full-time financial aid specialists to help guide you through the process. The right monetary support means your degree is within reach, allowing you to increase your salary, advance your career, and fulfill your potential.
