Exploring the Diverse Avenues of Financial Support for Students and Families
Financial support often plays a pivotal role in shaping a student and their family’s pursuit of higher education. The cost of tuition, books, housing, and other expenses can feel overwhelming, but there are resources available to help eliminate financial barriers that come up along the way. It’s important for students to understand the basics so when the financial aid offers are distributed, they know how to make good choices.
The Free Application for Federal Student Aid (FAFSA) is the gateway to federal financial aid programs. As the cost of education continues to rise, the FAFSA is becoming increasingly important. Each fall, students should submit their FAFSA for financial aid opportunities that are not available elsewhere.
Scholarships and Grants: Opening Doors to Merit-Based Aid
Scholarships and grants are considered free money. For private scholarships, local and national donor can set criteria. An essay and/or references may be required. Colleges and universities also offer scholarships that are usually based on high school GPA, athletics, service, leadership, and/or organizational involvement.
It’s important for high school students to work closely with their school counselors to find and apply for scholarships and grants. A school counselor is in a position to know about available local scholarships. Applying for local scholarships reduces the overall applicant pool. Local scholarships often look for a specific type of student within their own community. The smaller an applicant pool is, the better chance a student has to be awarded that particular scholarship.
Students should be prepared for quick turnaround deadlines so when a scholarship or grant does become available, the school counselor knows exactly who is prepared and ready to apply. Develop relationships with mentors, teachers, and coaches and make sure that you respect everyone’s time when asking for recommendations letters.
Work-Study Programs: Balancing Work and Academics
The FAFSA determines whether or not a student can be eligible for work-study. Even if a student is eligible, there is no guarantee that a student gets a job on campus. Most college and universities offer a variety of work-study opportunities.
Students who have a work-study job earn a paycheck like every other student employee. The paycheck goes directly to the student, not to the Bursar’s Office to pay for tuition or fees.
Federal Loans: Bridging the Financial Gap
In order to be eligible for Federal Student Loans, a student must file an annual FAFSA.
- Accessibility: Federal loans are available to all students who file a FAFSA, a broad range of students, including those with limited credit history or financial resources.
- Interest-free or Lower interest rates: Federal student loans typically have lower interest rates compared to private loans. Federal Subsidized loans are interest-free for students who qualify and only start to accrue interest after graduation.
- Income-driven repayment plans: Federal loans offer various income-driven repayment plans that adjust monthly payments based on a borrower's income, providing relief during periods of financial hardship. Federal loans must be repaid after graduation.
- Subsidized loan: no interest while in school
Unsubsidized loan: interest starts as soon as the loan disburses - Loan forgiveness programs: Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness programs incentivize graduates to pursue careers in public service or education, offering forgiveness of remaining loan balances after a certain number of qualifying payments.
- Deferment and forbearance options: Students facing temporary financial difficulties can temporarily postpone or reduce their loan payments without accruing additional interest in certain situations.
Community Support: Support Beyond Traditional Aid
Students and families can expand their search for financial aid by looking into the community. Often, employers have tuition assistance programs for their employee’s families. Churches and local social organizations may have funds as well.
For students in Central Ohio, the Columbus foundation has a whole list of scholarships. The Cincinnati Foundation and Cleveland Foundation have similar pages specifically designed for students looking forward to higher education.
In the world of financial aid, there is no one-size-fits-all solution. Financial aid plays a pivotal role in making higher education accessible to millions of students in the U.S. and there are options for everyone.