Education grants can help pay for college, university, trade school, and other educational institutes. If you apply for student loans and grants, you may be able to receive free money for tuition and school supplies. Some student grants may even cover housing, food, and other expenses.
Grants for online courses, tuition-free scholarships, and other education assistance grants may be provided by the government as well as private organizations. Each type of grant has varying requirements and terms. Qualified students could receive a couple hundred to a few thousand dollars, depending on their household income, the field of study, and other conditions.
Student loans and grants may help pay for various school costs. In most cases, you need to repay your loans but do not need to repay grants or scholarships. Grants and scholarships can save you money without the responsibility of monthly payments for years after you graduate.
You can apply for loans, scholarships, and grants for online classes and in-person courses. However, each type of financial aid has different requirements.
For instance, a private student loan lender may require you to have a good credit score or a cosigner. But a government-based organization may only lend you money to attend an accredited school and enroll in a qualified program.
You can generally apply for student aid with the following sources:
- Federal grants
- Private grants
- Scholarships
- Federal loans
- Private loans
Federal student grants are based on financial need, such as having a low household income or limited resources. The purpose of federal grants is to provide money for students who would otherwise be unable to attend college.
The criteria for federal student aid differs based on the government agency providing the money. Some programs only help specific populations. For example, the GI Bill grant is from the Department of Veterans Affairs (VA), and only veterans and certain family members that meet the conditions can qualify.
Likewise, some programs are exclusive to a degree or certificate program, and might even have work requirements after graduation. If you do not fulfill the work conditions, the grant may convert to a loan that you need to repay.
Private student grants usually come from businesses, charities, and other non-government organizations. Grants may be based on:
- Competition, such as writing an essay.
- Demography, like first-generation college students.
- Disability, ethnicity, or gender.
- Degree or certificate program.
- The educational institute.
Scholarships are similar to student grants but are typically merit-based. For instance, high academic and athletic performers may receive scholarships for as long as they maintain a certain GPA or play a sport for the school. Some businesses offer scholarships to students pursuing a specific focus, such as STEM degrees.
In addition to grants and scholarships, the government offers federal student loans that typically need to be repaid monthly. They are also subject to federal regulations, like payment forbearance and forgiveness. In fact, the recent student loan forgiveness plan announced by President Biden forgives up to $20,000 in federal student loans.
Private student loans typically have higher interest rates and more stringent requirements than federal loans. However, they do not have borrowing limits like federal loans do. So, you may need a private loan if your annual tuition is more than $12,500 as an undergraduate or $20,500 as a graduate student.
