HOW DO I PAY FOR COLLEGE?
LOANS
SCHOLARSHIPS
GRANTS
SAVINGS
LOANS
FEDERAL LOANS
DIRECT SUBSIDIZED
This is a type of federal loan that is meant for people with financial need. They do NOT collect interest during the life of the loan. The price tag you see, is what you have to pay back. No more.
DIRECT UNSUBSIDIZED
This is a type of federal loan meant for everyone. Financial need is not calculated into the amount that you can borrow. These loans COLLECT INTEREST during the life of the loan. Meaning that you have to pay back the loan AND the interest. The "U" in unsubsidized means that "u" have to pay more than just the laon.
Loans are money that you borrow and then have to pay back. Some of them have interest while others do not. Make sure you pay attention to the type of loan it is!
DIRECT PLUS (PARENTS ONLY)
This is a type of federal loan that parents can take out to help cover their child's education costs. A credit history check is required.
INSTITUTIONAL
LOANS
LOAN NAMES WILL VARY
This is a non-federal loan that is offered by the school that you will attend. For example, UVM offers a variety of instituional loans all named after different people who donated money for the loan. These loans will vary in terms of interest rates. You repay the school's borrower service rather than the government.
PRIVATE LOANS
VSAC LOANS
VSAC offers a variety of loans for both students and parents! You do have to fill out the FAFSA plus the VSAC loan application but they tend to have lower interest rates and are close by! The interest rates will vary based on person to person. Talk to your guidance counselor and a VSAC representative to learn more!
BANKS AND PRIVATE LENDERS
These loans are the most variable. The interests will vary from bank to bank and lender to lender. The repayment plans will vary, and the application process will vary as well. Make sure you explore all federal, instituitional, and VSAC options before going to a private lender because their interest rates tend to be higher!
SCHOLARSHIPS
HIGH SCHOOL
ACADEMIC
Often times high schools will give out academic scholarships. They will give them to people will excellent grades, and/or people who they know are applying to a specific field. That is why it is so important to develop a good relationship with your teachers and guidance counselors-- they are the people who get to nominate you!
ATHLETIC
Some high schools give out scholarships to outstanding athletes, people who really represent the values of the school both on and off the field/court.
Scholarships are FREE money, you do NOT have to pay them back!
VSAC
VSAC SCHOLARSHIP BOOK
VSAC is an excellent resource if you're thinking about applying to college and money is tight. Not only do they offer loans and grants, but they have a scholarship booklet full of scholarships for Vermonters! We recommend that you get a copy of the book from your guidance counselor (or online) and go through each scholarship to see if you are eligible. Circle the ones that you qualify for and then make sure to gather all of your application materials. Some of the scholarships reqire essays and letters of recommendation! Hence why you should put all of this in a google doc.
CLICK HERE FOR THE LINK TO VSAC SCHOLARSHIP BOOK
CLICK HERE FOR THE LINK TO SCHOLARSHIP GOOGLE DOC
COLLEGE
ACADEMIC/MERIT
Colleges and universities will give out scholarships based on acadmis success and merit. This means that your grades and proficiencies matter. In addition, if you took a standardized test such as the ACT or SAT they may give you additional money if you did well.
ATHLETIC
If you were recruited to a Division I or Division II school for a sport, often times they will include an athletic scholarship package that is separate from any academic/merit scholarships you're offered!
MISCELLANEOUS
Colleges offer a variety of scholarships for many different reasons. Some schools offer scholarships based on financial need, others offer scholarships based on your major choice and your high school success. Finally, some schools offer scholarships for your hardships and anything you may have dealt with. That is why making sure that your common app is representative of YOU is so important. You can get money for simply being you!
BANKS/CREDIT UNIONS
Check out your local bank/credit union, often times they offer scholarships for people who are applying to college. Some of them can be major/field specific but free money is free money!
OTHER
EMPLOYERS
Have you been working part-time during school? Do you plan to keep on working at the same place throughout collge. If so, many employers offer scholarships for their employees who are working part-time and in college. Ask your employer what they offer for people in your situation!
MISCELLANEOUS
There are LOTS of scholarships out there, the hard part is trying to find them. However, a scholarship is free money so what's the harm in trying? We recommend googling for scholarships specific to your situation. For example, are you a first generation college student? If so, head to google and see what's offered! Maybe you've experienced some form of hardship or struggle! There are scholarships for you. If you want to go into nursing, google it! The possibilities are endless, all you need to do is take the time to do your research.
GRANTS
PELL GRANTS
Pell Grants are for people who have significant financial need. Their household income is typically less than $25,000 a year. Thousands of students get it every year. If this sounds like you, check out THIS WEBSITE.
FEDERAL GRANTS
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (FESOG)
FESOG grants are also for students with financial need but they are not as restrictive as Pell Grants. Check out THIS WEBSITE to learn more!
TEACH GRANTS
TEACH grants are only for people who are 100% committed to becoming a teacher through a 4-year degree. You must be enrolled in the college to apply! CLICK HERE to learn more if you're thinking about become a teacher.
Grants are FREE money, you do NOT have to pay them back!
VERMONT GRANTS
VSAC VERMONT GRANT APPLICATION
VSAC offers grants as well. They have something called the Vermont Grant Application that you have to fill out in addition to the FAFSA. These grants are specific to Vermonters and give various amounts based on each individual's situation! CLICK HERE to see VSAC's page about Vermont Grants.
SAVINGS
PERSONAL SAVINGS
MONEY YOU'VE SAVED OVER THE YEARS
This is it, all the money that you've saved up for college from working and/or from birthdays and holidays, well now is the time to use it. You can put it towards books, tuition, and fees, or living costs associated with college like 2 am. late-night pizza delivery. The earlier save, the more interest your account with acquire, meaning the more money the bank contributes to your savings account.
A 529 Plan
A 529 plan is rare for people who have little experience with investing, but it is something to note for the future if you plan on having kids and expect them to go to college as well. Essentially it is an investment fund for the sole purpose of higher education costs. If your family has one or you may want to create one some day for your children there is more information HERE.
Savings is your hard earned money, the money you sweat and planned for. Use it wisely! a
WORK STUDY
FEDERAL WORK STUDY
Work study is a program for students who demonstrate financial need. It is approved based on your FAFSA application. Essentially your school will pay you while you work for the school. Whether it be research, cleaning, answering phone calls, etc. there are MANY work study jobs and it allows students to work part time while in school with flexible hours. If you get offered work study, TAKE IT!