These financial aid programs can help you pay for college.
A college education is a powerful investment in your future, but achieving that education often comes with a significant price tag. Financial aid programs can help reduce the burden and are available from a variety of sources to suit your individual needs.
FAFSA
The Free Application for Federal Student Aid (FAFSA) is one of the most common and accessible ways to secure financial aid. Through FAFSA, students may qualify for federal loans, grants, and work-study programs.
The U.S. Department of Education states that most incoming college students qualify for some form of federal aid, regardless of age, race, or field of study. However, financial need plays a significant role, with students from lower-income households often receiving more assistance. Basic requirements include a high school diploma or equivalent, enrollment as a regular student, and Selective Service registration for male applicants.
Federal aid obtained through FAFSA must be used strictly for educational purposes. It’s wise to submit your FAFSA application as early as possible since funding is awarded on a first-come, first-served basis.
Private Student Loans
Private lenders also offer student loans, providing an alternative to government-issued loans. A key advantage of private loans is their flexibility – eligibility criteria may be less restrictive, and funds can often cover additional expenses, like room and board.
That said, experts recommend turning to private loans only after exhausting other options, such as federal loans or scholarships. Be sure to compare lenders and loan terms carefully, as missing payments or late submissions can negatively affect your credit score.
Scholarships
Scholarships are a valuable source of financial aid because they do not require repayment. These are typically awarded by private organizations, nonprofits, businesses, and even universities themselves. Scholarships are often merit-based, meaning they may be awarded for academic, athletic, or artistic achievements.
Because competition for scholarships can be fierce, applying early is crucial. While scholarships are available to college students, many are awarded to high school seniors, so it’s a good idea to start searching and applying well before graduation. Consider looking into local scholarships, as these may offer less competition.
Grants
Like scholarships, grants are a form of financial aid that does not need to be repaid. The key difference is that grants are typically awarded based on financial need rather than merit. Federal grants, which can be applied for through FAFSA, are among the most common. State governments, counties, and private colleges may also offer grant opportunities.
Private colleges often provide more grant money than public universities due to their higher tuition rates. If financial need is your primary concern, exploring grant opportunities can make a substantial difference in covering your education costs.
SUPPORT FOR YOUR FINANCIAL FUTURE
Whether it’s through federal programs, private loans, scholarships, or grants, these financial aid options can make pursuing higher education more affordable and attainable.
Here to Help
Ready to take the next step toward your financial goals? Five Star Bank is here to help you prepare for the future. Visit your local branch or connect with us online to explore how we can support your educational journey and beyond.
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