Your Guide to Paying for College: The Role of Scholarships and Grants

There’s no denying that the sticker price of your college may leave you at a loss for words. Public colleges and universities in the US witnessed a staggering 28% hike in tuition fees between 2009 and 2019. With educational costs looking exorbitantly high and no signs of dipping any time soon, it’s time to explore alternative funding options.

A survey reveals that US students used grants and scholarships to fund as much as 26% of their college expenses in 2021-2022. Scholarships and grants go a long way in easing up educational financing. The best thing about these aids is that students need not repay them even after being well-settled. You can significantly navigate academic financial challenges with timely access to these aids.

Traditional savings such as 529 plans and parental income may fall short of bailing you out. Evidently, college students should be proactive enough to apply early for suitable scholarships and grants.

How easy is it to obtain scholarships or grants for college education?

Well, we don’t want to scare you, but unless you know how to apply for these financial aids, you stand thin chances of qualifying for one. Let’s study these statistics to have a closer look into the role of grants and scholarships in college education.

• The cost of education per year is $25,707 for a four-year college degree in the US. However, the percentage of students receiving financial aid over $25,000 is only 0.2%.
• Every year, around 1.7 million scholarships are sanctioned in the US, out of which 97% of students receive aid less than $2,500.
• Just one out of eight college students qualify for a scholarship.
• The scholarship funding of the U.S. Department of Education is around $46 billion per year.
• 16% of college students qualify for State scholarships, while 13% get private scholarships.
• As much as 58% of families in the US avail of some sort of scholarship to fund education every year.
• Just 4% of students have an exceptional GPA, ranging between 3.5 and 4.

These figures speak tons about the availability of scholarships for college students and the ease of accessing these funds.

Understanding scholarships and grants better

Unlike education loans, scholarships and grants are free aids. Anything that comes for free would be highly sought after, and this is no exception for educational aid.

The prime difference between scholarships and grants is their source. Scholarships come from different organizations, both profit and non-profit, as well as academic institutions. Grants, on the other hand, are sanctioned by the Federal and State Governments.

Scholarships, in general, are merit-based. This implies that students with sound academic performance will likely qualify for scholarships. However, need-based scholarships are also popular in the US. Financially stressed students who are not too affluent may qualify for these aids. Scholarships are also sanctioned to college students on the basis of their field of study and extracurricular activities.

Grants, on the other hand, are primarily need-based. Therefore, scholarships differ from grants on grounds like eligibility criteria, source, and the application process.

Why is it important for college students to get scholarships?

Looking beyond direct financial benefits, scholarships, and grants streamline the path to knowledge acquisition in several ways.

Reduce debt in your early years

Financial experts habitually advise reducing debt early in your life. Unless you adopt an aggressive stance to clear student loans, these liabilities can haunt you long after you graduate. Why delay your long-term savings by entertaining student debt?

Now that you know the cost of accessing quality education, apply for scholarships rather than loans. Try not to go for loans as long as you can manage educational costs through parental income, savings, scholarships, grants, or other types of aid. Remember, loans involve substantial rates of interest that make it challenging to become financially independent.

Going for alternate funding options, such as scholarships and grants, can make a huge difference in your financial stability.

Access quality education

How about studying in the esteemed college you had always dreamt of? Finances shouldn’t be a bar as long as you maintain your academic grades. Merit-based scholarships significantly bridge the fund gap for meritorious students.

Need-based scholarships and grants are also available to financially assist college students. Unless you receive substantial support through these aids, accessing quality education will be challenging. Studying in one of the top colleges would help you land high-paying jobs. On the other hand, mediocre education may require you to struggle in the professional circuit as you climb up the hierarchy.

With a scholarship or grant, you get access to quality education. The rewards start coming in terms of higher pay, faster promotions, and better prospects.

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