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In addition to family funds and savings, there are two main types of funding for college: loans and grants.Grants, including scholarships, are gifts of money that do not have to be paid back, but students often must fulfill certain obligations, such as maintaining a certain grade point average or demonstrating family need, in order to qualify.Scholarships are funds that are earned or competed for, and they may be based on the student's academic, athletic, or civic performance or on some other condition that has been met by the student or family.
In addition to family funds and savings, there are two main types of funding for college: loans and grants. Loans are borrowed money that must be paid back, with interest, although the interest rates for student loans are lower than for some other types of loans. The early years of many workers' careers are spent trying to pay back student loans. Grants, including scholarships, are gifts of money that do not have to be paid back, but students often must fulfill certain obligations, such as maintaining a certain grade point average or demonstrating family need, in order to qualify. Scholarships are funds that are earned or competed for, and they may be based on the student's academic, athletic, or civic performance or on some other condition that has been met by the student or family. Identifying and accessing these funds can be confusing, and even discouraging, for families when they encounter the application forms. Colleges, secondary schools, and other organizations have offices to help students learn about funding resources.
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