Scholarships and Grants

Unlike student loans, scholarships, grants and fellowships do not have to be repaid. Millions of dollars in scholarships and fellowships are awarded each year.

Scholarships

Scholarships are financial aid awards which don’t have to be paid back. They are a great way to take some of the burden off of college costs if the time is taken to locate and apply for them. They are usually restricted to students with special qualifications such as academic, athletic or artistic talent.

This does not leave out everyone else though. Scholarships are also given to students who are interested in particular fields of study, who live in certain areas, or who demonstrate financial need. Many organizations such as charitable groups, unions and others offer scholarships to children of their members/participants. Most scholarships require an application process, so seek them out early and apply extensively.

Some scholarships have ongoing requirements, requiring recipients to fulfill an obligation of some sort. They may have to work in a particular field (education scholarships are not uncommon), work for a particular employer, or work in rural or remote areas. These obligations should be taken seriously, and if the student doesn’t fulfill them, they may have to pay back the cash value of the scholarship. This is certainly true with teacher training scholarships and health and medical education scholarships, which are frequently for people who commit to work in rural and remote areas. The programs offered by the U.S. Armed Forces also generally carry a requirement to serve for a period of time.

Grants

Grants are commonly based on financial need alone. The most well-known is the Federal Pell Grant. The good news is, you don’t have to do anything extra to get a Pell Grant. If you’ve filled out your FAFSA and applied for financial aid at your school, then your Financial Aid Office will determine your eligibility for a Pell Grant and include it in your financial aid package. The bad news is that the maximum possible Pell Grant currently stands at $4,050 a year, which isn’t going to cover much for many students.

Another grant is the Federal Supplemental Educational Opportunity Grant or FSEOG. The FSEOG is also based on extreme financial need and is for undergraduate study only.

The bad news is that as of the 2006-2007 school year, the Pell Grant maximum was $4,050 a year and the FSEOF had an annual cap of $4,000. These amounts won’t cover much for many students.

Grants from schools themselves can vary in amount. Many factors such as financial need, grades, merit, or program of study are taken into consideration when these grants are issued. To be eligible for any grants, you must fill out the FAFSA form.