Money For College - Types of Financial Aid Available

If you're planning to attend college and your daddy'sThere are four common types of grants: Federal Pell
name isn't Warbucks, you'll need to figure out a wayGrants, Federal Supplemental Education Opportunity
to pay for it. Getting money for college doesn't haveGrants, State Grants, and Institutional Grants. There
to be an insurmountable task, but it is an education inare also secondary Academic Competitive Grants,
and of itself. Understanding what types of financialand National SMART Grants for students majoring in
aid are available is the first step.math, science and social studies, who also receive Pell
There are three basic types of financial aid: studentgrants.
loans, scholarships, and grants. Students loans makeEligible schools receive a certain fixed amount of Pell
up about 58 percent of student aid; scholarshipsGrant money each year and once it's gone, it's gone.
make up less than 2 percent; grants make up aboutApplying early for student aid is a must if you're
40 percent. The best money is free money.hoping to take advantage of this type of financial aid.
Scholarships and grants fall into this category.Pell grants are based solely on need, determined by
Loans have to be paid back with interest, so goingyour college of choice based on approved federal
after the free money for college makes sense.guidelines.
Federal student loan programs will usually haveFederal Supplemental Education Opportunity Grants
deferrals for payment and sometimes for interest ifof $100 - $4,000 are reserved for the neediest
your situation meets the requirement for thesestudents. Application is made through the college
considerations. However, student loans cannot befinancial aid office.
charged off in a bankruptcy, so don't even thinkState grants vary and can be based not only on
about not paying them back.need, but may also target certain course studies and
While you don't need a high school diploma or GED toor career locations, such as teaching in a low-income
attend most colleges, you do need one or the otherdistrict. Check your local state's website for student
to apply for most scholarships. Scholarships come inaid or higher education commission and be aware of
basically two forms: academic and athletic/corporateany strings attached.
sponsored. Scholarships can be offered by the collegeInstitutional grants come from the colleges
or university or by a private organization orthemselves and are dispersed when federal or state
corporation. Scholarships are also awarded tofinancial aid isn't enough, or when a school is trying to
students from minority groups by clubs andattract candidates they consider desirable. Typically,
organizations that focus on the needs and challengesyou don't apply for these grants, but you can
of those groups.increase your chances for this type of financial aid by
Grants, of course, are a much better deal than loanstargeting schools that are likely to want you, rather
because the money doesn't have to be paid back,than fighting to be admitted to a school that has
and if you're not in a minority group, a more readilyplenty of other candidate choices.
available type of financial aid. Grants are usually basedIt's no secret that those with a college degree are
on economic need and often given out on amost likely to succeed in their chosen career. With so
first-come, first-serve basis, so it's important to applymany types of financial aid available, getting money
early for financial aid. The readily available grants arefor college is more attainable than ever.
federal and state grants.