Ahh, college: for many, it’s the starting place of living out the American dream. A place where “adulting” truly begins, goals are achieved, and degrees are earned. A place where many young adults go to to really figure out what they want to be when they grow up. Unfortunately, it’s also, for many, a place where debt is incurred. College dreams can quickly come crashing down as students face the reality of ramen noodles, mac & cheese, and plasma donations. The cost of attending college is no joke.
It’s no secret that the cost of tuition has increased over the years, sometimes inflating faster and steeper than the cost of living. This means that student debt is rising, and it’s hard to keep up. The average yearly tuition for college in the 1960s hovered around $250 for a public college. Today, yearly tuition for a public college averages over $10,000. Yikes! Talk about an increase!
Even though the price is steep, colleges are still attracting students who are eager to learn and prepare for their future. Of the thousands of students enrolled in colleges across the country, there is a very small percentage that can pay for their tuition, books, fees, and living expenses from their own bank accounts. Because of this, students must rely on outside sources for funding.
The world of financial aid can be a bit overwhelming to navigate. Today I’ll break it down and explain the different kinds of aid that are available to students who need help paying for college expenses. We’ll group them into two categories: those that require repayment and those that don’t.
Financial Aid- Repayment Required
Loans: A student loan is money borrowed for the purpose of paying for the costs of attending college. Loans must be repaid, and typically include interest. Most student loans do not require payback to begin until after the student has graduated or otherwise stopped attending the college. Many loans meant for students have an option to do income-based repayment plans, where the monthly payment amount is determined by how much money the student is bringing in each month.
Some loans will offer loan forgiveness if the student obtains a job in a specific career and maintains employment for a set period of time, while also making payments toward their loan balance during the duration of the years of work set by their loan terms.
Financial Aid- No Repayment Required
Grants: Grants are most often based on financial need. The most common type of grant is a PELL Grant, offered by the government. Students qualify for this kind of grant if they fill out the necessary forms and are found to have the greatest financial need. There are usually stipulations attached to the grant, such as maintaining a certain GPA, attendance requirements, and so on. Students can apply for federal grants by filling out the FAFSA form that can be found here.
Grants can also come through other government agencies such as Department of Workforce Services, State Offices of Rehabilitation, and Veteran’s Affairs Office of Education and Employment. Funds that come from these agencies are typically reserved for persons with disabilities or some other hardship that would otherwise prevent them from attending school and finding meaningful employment. Funding for tuition through these avenues would need to be obtained via working with a vocational counselor at each specific agency.
Scholarships: This type of financial aid does not have to be repaid, and is awarded to students based on various things. Scholarships can be given for just about anything, as long as there is a supporting person, group, or company that is awarding the funds. For example, our scholarship, the Honors Graduation Build A Better Future Scholarship is awarded to five outstanding high school seniors who design, plan, and execute a project that betters their community. Other scholarships are awarded for athletic prowess, while others are given for academic achievement. Others are awarded for writing an essay about why the number “5” is the best number, having red hair, writing an essay telling which superhero you’d want to change places with for a day and why, creating an award-winning greeting card design, or even writing an essay that makes the judges laugh. Simply put, there are scholarships for every kind of person out there— you just have to be willing to put in the work to find it!
———————
If college seems out of reach for you because of your financial situation, you may be pleasantly surprised to discover that you qualify for PELL grants, loans, or obscure scholarships. If you are truly committed to making college your reality, don’t be afraid to put in some work and make it happen! You won’t regret it, and the experiences you have and the things you learn will shape you into an amazing person who will do amazing things!