3 answers
Jessica
Student
1
Question
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How does free money work from grants or scholarships?
At the end of college do you have to pay it back? is it safe ?
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3 answers
Michelle M.
Actress
2309
Answers
Updated
Michelle’s Answer
Hello, Jessica !
I smiled when I saw you describe it as "free money" and would be happy to explain how it all works. Yes, it looks like free money, however you will be working very hard while receiving it and to maintain qualifying for it.
In order to apply for the "free money" you apply for Federal Student Financial Aid. The free money from this that you do not have to pay back are the grants and the work study. If you select "Loan" that is the one you have to pay back once you are no longer a student. You can refuse Student Loans and look online about how to do that. But you do not pay back the monies given to you by the Federal Student Financial Aid Program (just the loans). You will have to be enrolled in 12 units of credit or more each semester, but sometimes some colleges approve part time enrollment being covered, so you'd have to check with the specific college.
As for Private scholarships and private Grants outside of the Federal Student Financial Aid Program, given by companies, organizations and private donors, you do not have to pay these back. The money is awarded to you. Each Scholarship and Grant has guidelines or requirements that are expected of the student. You can read some of these by reading scholarships and grants on websites. Each one spells out the qualifications and what is expected of the student such as maintaining a certain GPA, or other things. Sometimes, some scholarships just donate without any specific expectations.
If you take out Student Loans, it is expected that you pay them back when you are no longer a college student. Each Loan has specific guidelines. The ones through the Federal Student Financial Aid Program allow students a six month grace period before starting paying back on the loans. If you get your Bachelors Degree or go beyond the four years it takes enrolled as a student, you wouldn't have to pay it back yet. Not sure how it works if you enroll for a Masters, so each loan will have guidelines you can read.
Is it safe ? Well, it was very safe for me. I went to college decades ago and they only started issuing student loans through the Federal Student Financial Aid Program when I was in my senior year. The loans were in very, very small amounts and very low payments and I paid my two student loans back in five years. Prior to that it was all, like you said, free money.
I sure hope that this explains it a little and I wish you all the best in exploring this topic !
I smiled when I saw you describe it as "free money" and would be happy to explain how it all works. Yes, it looks like free money, however you will be working very hard while receiving it and to maintain qualifying for it.
In order to apply for the "free money" you apply for Federal Student Financial Aid. The free money from this that you do not have to pay back are the grants and the work study. If you select "Loan" that is the one you have to pay back once you are no longer a student. You can refuse Student Loans and look online about how to do that. But you do not pay back the monies given to you by the Federal Student Financial Aid Program (just the loans). You will have to be enrolled in 12 units of credit or more each semester, but sometimes some colleges approve part time enrollment being covered, so you'd have to check with the specific college.
As for Private scholarships and private Grants outside of the Federal Student Financial Aid Program, given by companies, organizations and private donors, you do not have to pay these back. The money is awarded to you. Each Scholarship and Grant has guidelines or requirements that are expected of the student. You can read some of these by reading scholarships and grants on websites. Each one spells out the qualifications and what is expected of the student such as maintaining a certain GPA, or other things. Sometimes, some scholarships just donate without any specific expectations.
If you take out Student Loans, it is expected that you pay them back when you are no longer a college student. Each Loan has specific guidelines. The ones through the Federal Student Financial Aid Program allow students a six month grace period before starting paying back on the loans. If you get your Bachelors Degree or go beyond the four years it takes enrolled as a student, you wouldn't have to pay it back yet. Not sure how it works if you enroll for a Masters, so each loan will have guidelines you can read.
Is it safe ? Well, it was very safe for me. I went to college decades ago and they only started issuing student loans through the Federal Student Financial Aid Program when I was in my senior year. The loans were in very, very small amounts and very low payments and I paid my two student loans back in five years. Prior to that it was all, like you said, free money.
I sure hope that this explains it a little and I wish you all the best in exploring this topic !
Briana Fregoso
Strategy Consultant
10
Answers
Hayward, California
Updated
Briana’s Answer
Hi Jessica! Great news—you don't have to repay grants or scholarships! While you'll need to work hard to earn and maintain them, it's worth the effort. Grants often come from state or federal funds and are usually based on need, but sometimes your GPA and academic standing are considered too. You can apply for grants through FAFSA.
Scholarships, on the other hand, are usually offered by universities, private companies, or non-profits. They might require a personal statement, research papers, interviews, or a certain GPA. You can find scholarships on sites like FastWeb. I suggest crafting a strong personal statement that you can adjust for different applications. Look for scholarships that match your strengths and apply to as many as you can. The more you apply, the better your chances!
Remember, even if you don't win every scholarship, keep going. They're competitive, but persistence pays off. You've got this!
Scholarships, on the other hand, are usually offered by universities, private companies, or non-profits. They might require a personal statement, research papers, interviews, or a certain GPA. You can find scholarships on sites like FastWeb. I suggest crafting a strong personal statement that you can adjust for different applications. Look for scholarships that match your strengths and apply to as many as you can. The more you apply, the better your chances!
Remember, even if you don't win every scholarship, keep going. They're competitive, but persistence pays off. You've got this!
Rafael Diaz Montelongo
Consultant
395
Answers
Raleigh, North Carolina
Updated
Rafael’s Answer
Hi Jessica,
Grants and scholarships are like free treasure chests for college since you do not have to repay them like loans! Grants usually come from the government or schools and are based on financial need—just fill out the FAFSA to get started. Scholarships, on the other hand, are like prizes for your talents or smarts, and they are offered by schools, companies, or nonprofits. Search for both on sites like Fastweb or through your school’s financial aid office can really lighten your college cost load, so dive into the search! Best of luck!
Grants and scholarships are like free treasure chests for college since you do not have to repay them like loans! Grants usually come from the government or schools and are based on financial need—just fill out the FAFSA to get started. Scholarships, on the other hand, are like prizes for your talents or smarts, and they are offered by schools, companies, or nonprofits. Search for both on sites like Fastweb or through your school’s financial aid office can really lighten your college cost load, so dive into the search! Best of luck!