Life Skill for Teens-A Beginner's Guide to Financial Aid by a Semi-Functioning College Student

When it comes to applying for colleges, one of the most important factors is cost and affordability. With that in mind comes the daunting and sometimes overwhelming task of applying for financial aid. Financial aid can come in many forms but the most common types are scholarships, grants, and loans. 

Scholarships: are a type of “gift” financial aid meaning the recipient does not have to pay the amount back. Specifically, these are often merit-based, either academic excellence or athletic achievement. Scholarships can be awarded by schools and colleges, private organizations, and sometimes even your workplace. So if you work for a franchise or national chain, Chick-fil-A for example, make sure to check if you are eligible to apply for any workplace scholarships. 

Grants: are also a type of “gift” financial aid similar to scholarships. Unlike scholarships, however, grants are generally classified as needs-based and applicants often have to prove their financial need for a specific grant. Grants are usually awarded by the colleges and universities themselves as they often have a set amount of funds used to help cover the cost of attendance for their students. Grants can also be awarded by the state (especially if applying to an in-state school) or by the federal government. This is where filling out a FAFSA application comes into play (stay tuned for a follow-up article). 

Loans: tend to be everyone’s least favorite type of financial aid simply because you do have to pay loans back, usually with interest (bummer I know). Despite this, some, if not most, college students have to take out a loan at some point in their college education. You can apply for loans at your local credit union and for those who fill out their FAFSA (hint hint) you may be eligible for either a subsidized or unsubsidized loan with minimal interest. Subsidized loans have interest paid for by the government, but your FAFSA must first demonstrate financial need. On the other hand, direct unsubsidized loans’ interest is paid for by the recipient and interest starts accumulating when it is first added to your school tuition account. A majority of loans, however, come from student loan lenders. You can apply for a loan individually, but your chances of receiving a loan generally increase with the addition of a co-signer. A co-signer is an individual (typically have to be a U.S. citizen and legal adult) who agrees to share legal responsibility for repaying the loan. Major lenders include Sallie Mae, College Ave, and SoFi. 

Remember, this is just a brief overview of possible financial aid. Financial aid can come from everywhere, but it is also important to double-check the authenticity of your financial aid sources. Generally, if you have to pay a sum before applying for financial aid or to receive financial aid, it is usually not a legitimate source. Feel free to also contact your counselors or academic advisors, they are there to help. 

Financial aid can and is scary even for current college students, but it is a necessary step and life skill needed to reach your academic goals. Be on the lookout for future articles, specifically one on a quick guide to filling out your FAFSA application. 

Below is a short list of possible sources for scholarships and grants. Some are not open until early next year but be sure to keep an eye out for them! 

For further resources, explore our Career Readiness Program at Wisdom In Motion. 

https://hutchcf.org/nonprofitsandgrants/scholarships/ - Local scholarships offered by the Hutchinson Community Foundation 

https://www.careeronestop.org/Toolkit/Training/find-scholarships.aspx -National database by the Department of Labor 

https://www.fastweb.com/ -Scholarship search engine 

https://www.wisdominmotionks.com/career-readiness -Career Readiness Youth Mentoring is a 12 month program dedicated to empower youth in Reno County with important skills and pathways to ensure their success. Eligible youth who complete the course will be able to receive up to $3,500 for further job training or career program for select tracks.