Are grants better than loans when first going to college? #learning #college
I'm asking because i want to make the best financial decisions dealing with my education. #college-advice
4 answers
Loida Otero ➢ Social Media Marketer
Loida Otero ➢’s Answer
Your Guidance Counselor/College Advisor would be able to answer this question better. It largely depends on where you're looking to attend, your GPA and financial situation. Definitely, apply for grants and scholarships, because this is basically free money earmarked for prospective students. There are different criteria to meet to qualify, but there are so many that I'm sure you'll qualify for some. Also, applying to them will determine if and how much of a loan you'll need. Loans are just that, money that you repay with interest. You may be asked to apply for FAFSA (Free Application for Federal Student Aid), this will determine your eligibility for federal grants and federal loans. I've included more information below.
More info on FAFSA here: http://time.com/money/4108122/what-is-fafsa-and-who-should-fill-it-out/
More info on Grants and Scholarships: https://studentaid.ed.gov/sa/types/grants-scholarships
More on Scholarships: https://www.scholarships.com/financial-aid/grants/
Hope this answers your question.
Good luck!
Loida
Hi Loida. Thank you so much for the amazing advice that you provided to J'lyn above! I had a few follow up questions I wanted to ask out of my own curiosity:
1. In your own personal experience, what are some good ways to find scholarships/grants?
2. As a young adult myself, I don't know too much about loans. Do you have any additional info/experiences you could share on that front?
Thank you so much in advance.
Best,
David
David Ohta
COACH
Richard’s Answer
Loans are more flexible but have to be repaid when you find a job.
Herman’s Answer
I am not a financial aid professional, but I would like to share my experience financing college with you.
Grants are funds that are provided to you, usually based on financial need, that do not need to be repaid.
A loan is to borrow money, and has to be returned, usually with interest.
As grants do not have to be repaid, I think grants are much better.
Did I answer your question? Or did I misunderstood your question?
Best regards,
Herman
Eric’s Answer
First, it depends on what you are looking for. Grants and loans are both other people's money you can use to help pay down the high costs your education. But...
Grants are given freely and do not need to be repaid (unless you withdraw early and need to pay it back as part of your contact). It's someone else's money, and they want you to have it--once you get it, it's your money.
Loans, on the other hand, are someone else's money that they let you borrow, and which you must pay back with interest.
There's also work study, where part of your costs are covered while you are employed outside of class hours. (For more on all three options, please see the U.S. Dept. Of Education's site at https://studentaid.ed.gov/sa/resources/loan-grant-fact-sheets. Hopefully it gives you a little more detail).
Not that they are "bad", but loans are much more financially impactful on a young student-- you graduate with a debt, and large portions of your paycheck over a period of years will go to paying off the loan. Which could be OK if you can support that, or if the loan allows you to open doors and gain levels of experience or education that you wouldn't get otherwise.
But all things being equal, a grant is a better financial decision than a loan. It's money for "now-you" that "future-you" won't have to pay back.
I hope that helps. Good luck!
-Eric
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