Home Uncategorized Get through college with less debt: Your guide to scholarships and grants

Get through college with less debt: Your guide to scholarships and grants

Oct 27, 2021

Read time: 11 min

Key points

Fill out a FAFSA to see what type of financial aid you qualify for.
Grants are primarily based on financial need, while scholarships are based on merit.
Apply to as many scholarships as you are eligible to increase your chance of receiving aid.

With tuition skyrocketing each year, finding the funds to further your education might seem like a difficult task—especially with prices as high as $27,120 a year on average for out-of-state tuition (according to 2019 data from US News and World Report).

There is such a thing as free money to help you pay your tuition costs; it just takes a bit of know-how to make the most of it. Enter scholarships and grants, which are awarded based on merit (such as academic, artistic, or athletic talent) and financial need.

Apply for grants every year

To determine your eligibility for a grant, you must first fill out a FAFSA, or Free Application for Federal Student Aid. Even if you don’t think you qualify, chances are you do qualify for some aid, such as work-study.

The same goes even if you applied in high school and didn’t qualify. Student aid experts encourage you to reapply every year, as your financial status may have changed to impact your eligibility. (And if you’re already receiving FAFSA funds, your student aid office will likely require you to reapply every academic year as well.)

The federal deadline for the 2020-21 academic year is June 30, 2021. Visit StudentAid.gov for state-specific FAFSA deadlines. (Note: You should also check in with your school’s student aid office. Some colleges have their own set of deadlines to apply.)

What types of grants are available?

Once you fill out a FAFSA, there are many ways to find grants. Most often, grants come from state and federal governments. Nonprofit organizations, colleges, and even research and travel programs also offer grants. Federal grants, such as the Pell program, usually have a maximum dollar amount that can be awarded over a person’s lifetime.

Here are some of the most commonly awarded grants.

The Pell Grant

The federal government offers the Pell Grant to low-income families. The maximum Pell Grant for the 2020–2021 academic year is $6,345, and it changes each year. The amount students will be awarded depends on their financial need, cost of attending their chosen school, status as a full- or part-time student, and plans to attend school for a full academic year or less.

The TEACH Grant

The TEACH Grant provides up to $4,000 per year to students who are completing (or plan to complete) the coursework required for a teaching career and who agree to teach for at least four years in a low-income area.

Work-study grants

The government also offers work-study jobs, part-time positions on or off campus. These are coordinated directly with your school. The money you receive for working is intended to go toward education costs, such as tuition, fees, and housing.

(The coronavirus pandemic is affecting these grants. Some work-study jobs may be able to be completed remotely, while others may not. Contact your school’s financial aid office directly for information on how your job will be impacted.)

The FSEOG

There’s also the Federal Supplemental Educational Opportunity Grant (FSEOG), which is awarded by individual schools to students who have the most financial need. (To qualify, you must fill out a FAFSA form.) The grant payments can range from $100 to $4,000 a year, depending on how much other aid you receive, as well as grant funds available at the college you’ll be attending.

Military grants

If your parent or guardian died as a result of military service after September 11, 2001, in Iraq or Afghanistan, then you may qualify for the Iraq and Afghanistan Service Grant. The amount of money received would be equal to the yearly maximum of the Pell Grant but can’t exceed your cost of attendance for the year in which you were awarded the grant.

Find out about grants offered in your home state.

person filling out paperwork

Where and how do I apply for a grant?

The most reliable place to find a grant is the government’s free website, Grants.gov, which consolidates information from more than 1,000 government grant programs. You may want to avoid other sites when searching for grants, especially if they charge you service fees to use them. If you think you’re being scammed (being asked for money is a big red flag), you can file a complaint with FTC online or call 1-877-FTC-HELP (1-877-382-4357).

Once you register with Grants.gov, you can search for grants and download application packages for any you qualify for. Typically, to apply for a grant, you’ll need to submit a grant proposal explaining your background and eligibility and what you intend to do with the money if you win. You may also need to submit additional papers, such as tax or work documents. If you need help, ask to meet with a student aid advisor.

In most cases, “the [grant] application will typically ask for the student’s and parent’s demographic information, asset information, and financial information,” says Darcy Keller, director of student financial services at the City University of Seattle. “The application will also need the student’s and parent’s social security number.” The only time you won’t need your parent’s information is if you are considered an “independent student” for FAFSA purposes, which means you are “at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, someone with legal dependents other than a spouse, an emancipated minor or someone who is homeless or at risk of becoming homeless.”

Once submitted, you can track your application on Grants.gov.

What types of scholarships are available to me?

While most grants are based on financial need, scholarships are typically based on merit—thousands of scholarships exist for every kind of student. They are usually awarded based on something you’ve achieved, such as good grades, excellence in sports, or community involvement.

But there are some out-of-the-box scholarships out there too. For example, if you have dreams of opening up a small business, you can get a scholarship for opening an independent grocery store (seriously, this exists.)

Scholarships take a bit of research, but if you work at it, you should be able to find some you qualify for.

Many scholarships also exist based on ethnicity or cultural background. A large percentage of the US college population are considered minorities—Black, Indigenous, and people of color (BIPOC); women; members of the LGBTQ+ community—and scholarships exist to help level the playing field. Scholarships.com offers a free database to help you get started.

Where to look for scholarships

Many times, where to find a scholarship depends on what type of scholarship it is. For example, the financial aid office may award scholarships on a university-wide basis or targeted to attract a particular major.

Talk to your financial aid office. Financial aid counselors are likely versed in all the options available to you and armed with resources to help you get started.
Your state’s education agency. State scholarships are often limited to students attending college in-state, but not always—so it can’t hurt to check it out no matter your status.
Ethnicity-based organizations, such as the Hispanic Scholarship Fund or the Ron Brown Scholar Program.
Reserve Officers’ Training Corps (ROTC) scholarships are merit-based and offered to qualifying students who commit to serving in the military.
This free scholarship search tool by the US Department of Labor.

Apply for as many as you can

“Apply for every scholarship for which you’re eligible,” says Mark Kantrowitz, publisher and vice president of research at SavingForCollege.com. “You may think you’re a shoe-in, but in reality, it’s extremely competitive. The more you apply to, the greater your chances are of winning one.”

Tips to up your chances of winning a scholarship

If you’re feeling overwhelmed by the competitiveness of scholarships, don’t fret. Here’s how to improve your chances:

Use social media as an asset.

“More and more scholarship companies are checking out their finalists online or requiring them to friend them on Facebook,” Kantrowitz says. Obviously, you want to make sure your profiles don’t have any red flags (like underage drinking or reckless behavior), but beyond that, you can turn your Instagram, Facebook, and Twitter presence into a real asset. Use these channels as a place to promote your interests, post about your volunteer project, or celebrate your sports team’s last win. Think of yourself like a company you’re trying to get someone to invest in—and promote yourself accordingly.

Answer the optional questions.

When applying for a scholarship or grant, you’ll usually come across some optional questions that you may want to skip over. “Answer all of them,” says Kantrowitz. “It’s a little tedious, but students who answer the optional questions tend to match more scholarships on average than those who answer just the mandatory ones.”

Make yourself webcam friendly.

Many scholarship interviews these days are conducted using Zoom or a webcam. “Clean the lens if it’s dirty, or take a picture with your webcam so you can see what’s in view behind you. If there’s anything inappropriate, remove it,” Kantrowitz says.

phone with email error

Beware of scams!

Most students will run into a scam or two, says Kantrowitz. The biggest sign of a scam is if you’re asked for money.

“You should never have to pay to apply for financial aid,” Kantrowitz says. Never give away your social security number, your bank account number, or your credit card number on any sites that aren’t reputable, he says.

Other signs of scams include

Typos and spelling errors
Receiving an email from a scholarship you don’t remember applying for
Requiring an application fee
Guaranteeing that you’ll be awarded the scholarship

Learn more about common scholarship scams.

Note: If you win a scholarship that’s more than $600, the scholarship organization will need your social security number to report it to the IRS before you receive your money. Before providing it, ask an advisor if you’re unsure about the legitimacy of the organization.