A scholarship is a monetary reward given to those who excel in specific areas such as academics, athletics, music, or art, and normally does not have to be repaid. There are lots of scholarships that have very little competition for them, and are just waiting for the right person to find them and apply.
Over the past ten years, the cost of a college education has more than doubled. At the same time, new funding has become available to help students and parents who need assistance paying for college. Knowing how to identify resources to help pay college expenses, how to apply for financial aid, what to do, and when to do it can make the difference between keeping your first-choice college as an option or having to look at a college that is less attractive to you.
For many families, cost is a major factor in choosing which college their child will attend. While cost should not be the primary factor in choosing a school, getting the money you need to attend college will ultimately affect your decision on where to matriculate. If you think you will need financial assistance to attend college, you should apply for financial aid regardless of your income. You will find that there are options for every family.
People have many different definitions of financial aid. Just what is financial aid? Generally, financial aid is defined as monies made available by the federal government, state governments, colleges, and universities, and by corporations and private foundations to help families pay for educational cost. While most of this aid is based upon financial need, an increasing number of colleges and universities are awarding scholarships on the basis of academic performance as well. These scholarships are known as "merit" aid.
There are three types of financial aid. Although the most popular form of assistance is given in the form of grants and scholarships, financial aid is also awarded in the form of low-interest loans and in the form of employment opportunities. Grants and scholarships do not have to be repaid. Because of this fact, grants and scholarships are often referred to as "gift aid." Low-interest loans are another common form of assistance used by many students attending college. Most students would be unable to go to college if loans were not available.
Lastly, you may receive financial aid in the form of a work-study job. Work-study jobs allow you to work and earn money to pay for college expenses while you are attending college.
Determining Need
Financial need is the difference between the cost of attending a particular college and what you and your family can pay toward these costs. Of course, you do not get to choose how much you pay. A standard formula is used to determine what you and your family can contribute to your college education. College costs include tuition, fees, room and board, transportation to and from college, books, supplies, and personal expenses. These costs will vary from school to school. You can usually find a budget listing costs in the catalog, admission publications or financial aid information from the college of your choice.
Types of Scholarships
Truth is there are scholarships designed for almost every type of student. The key: take the time to search for the scholarships that best suit you.
Academic scholarships abound and are based on GPA and performance in school. Other scholarships are based on athletics, skills or extra-curricular activities. Even your part-time job can be an opportunity for a scholarship.
Many scholarships are designed for minority students and women. These awards offer financial opportunity to students traditionally underprivileged in higher education.
You can even find scholarships for very unusual attributes such as scholarships just for left-handed people and scholarships for the best prom dress made out of tinfoil. Don’t take scholarships like these lightly, the cash reward is very real.
Just as the costs may vary from institution to institution, the amount you and your family are expected to contribute towards college may vary slightly from school to school. Colleges and universities use a standard formula to compute how much you and your family can pay for college. The formula considers things like your family's income and assets, the number of family members in your household, the number of family members who will attend college the same year as you and a number of other important factors about your family. A few families will not be expected to pay anything for college. Others will be expected to pay more depending upon their income, assets, and other available resources. The Free Application for Federal Student Aid (FAFSA) is used to collect this information. The FAFSA is a financial aid application made available by the United States federal government and used by all colleges and universities to determine your eligibility for federal aid. Many colleges and universities will also use the FAFSA to determine how much financial aid you will receive from their own institutions as well.
Some state governments also use the FAFSA to determine who will get financial aid from the state. In order to ensure that you are considered for financial aid from all sources, you must apply each year for financial aid. If you do not apply, you will not receive financial aid even if you qualify.