Grants and scholarships

Your financial aid package may include grants and scholarships from your school, or you may try to find them on your own. The good news about grants and scholarships is that these forms of financial assistance don’t have to be repaid — they’re generally considered gifts. But there’s bad news: Unlike student loans, this kind of financial aid can be difficult to obtain. For instance, only a small percentage of college funding comes from private scholarships.

Scholarships are usually linked to your particular achievements and talents, such as music or athletic ability. Some scholarships are part of national programs, such as the National Merit Scholarship, which is based on your academic performance. Other scholarship programs are sponsored by certain colleges and universities just for their students. Still others are geared for certain types of students, such as those studying a particular subject in a particular place, or go to students of a particular background. You can find out about scholarships from your school, the Internet, the library, or your guidance counselor.

Scholarships sound great, but many of them have specific requirements or guidelines — for example, you might have to maintain certain grades or meet some other kind of criteria to remain eligible. And others are nonrenewable, meaning the funds only apply to a certain term, after which you’ll need to reapply or obtain financial aid elsewhere.

Grants are almost always based on financial need rather than achievement, although eligibility for many grants hinges on certain academic criteria. For instance, the federal government’s Pell Grant usually requires you to keep a minimum C average. When you submit your FAFSA, you automatically put your name in the hat for grants from the state and federal government, schools, and private organizations.