Coming from a high school in which everything is funded through your parents and transition to college in which funds are hard to come by. This is one of many reasons why funding a college education is perhaps one of the hardest parts of one’s educational journey. Intimidating costs can cause many students, their parents, as well as their support system a fright. Fortunately, there are a myriad of options on how to maximize funding opportunities, ensuring individual’s education will be paid for!
Scholarships
Scholarships have consistently been a reliable funding source for students. They are a form of aid that doesn’t require repayment. They can be a one-time award or stretch across different semesters and academic years. Scholarships can be awarded for several reasons and have numerous types, such as chance, need-based, activity, identity based, and more. Criteria vary from scholarship-to-scholarship. These awards are funded by businesses, organizations or private donors. Also, scholarships can cover many expenses, including textbooks, living expenses, and tuition. Scholarships are an excellent way to promote students’ dreams and success throughout their college career while eliminating the stress of financial burdens.
Endowments
Endowments consist of money or financial assets donated to a college institution. Colleges typically have a general fund as well as several other funds catered to other areas of an institution. This money is a great source of stability for colleges.
Work Study
Work study refers to part-time jobs offered to enrolled students to help with college expenses. These jobs can either be career-focused or unrelated to your desired degree. Regardless, many would argue that the working experience alone is beneficial, as it prepares students for work life in the future. Jobs can take place at the institution or outside of it, or sometimes both. Like scholarships, work study opportunities don’t require repayment. To be eligible, students must fill out the FAFSA.
Grants
Grants are like scholarships but carry their own unique traits. While they are another form of free aid, the application process for grants tends to be a lot simpler and straightforward. Funding for grants comes primarily from state or federal aid. To be eligible for most grants, students must fill out the FAFSA. Because there are significantly less grants than other forms of financial aid, receiving them can be more difficult and highly competitive.
Loans
Loans are a commonly used option for funding. Loans are money that can be borrowed on multiple fronts that are expected to be paid back in full by a certain date with interest. There are multiple types of loans, the most common being direct subsidized loans and direct unsubsidized loans.
According to the FAFSA official website, direct subsidized loans are for eligible undergraduate students with demonstrated financial need, generally up to $5,500k depending on grade level and dependency status. On the flip side, direct unsubsidized loans are for eligible undergraduate, graduate, and professional students, generally up to $20,500k depending on grade level. Parents can also take out loans for their children attending college, but terms are on a case-by-case basis. While they may seem convenient, it is important for students considering loans to exercise caution. Pay attention to interest rates, frequency of payments, and personal income when thinking about student loans.
We at STEM From recommend using a mixture of options, as it maximizes opportunities. That way, students are paying out of pocket as little as possible. Here are some other ways to help with college funding:
If in K-12, investigate the options of collegiate or taking AP classes for college credits during high school
Utilize on-campus or college website resources
Complete the FAFSA every year
Cheaper options such as community college and public institutions
Crowdfunding such as GoFundMe to help with expenses
We hope this article was helpful! Our mission at STEM From is to provide as many resources as possible for individuals on their STEM journey. Check out our programs and tune in for the rest of our Navigating College Series! Let us know if you have any questions in the comments!
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