3.05 Paying for Higher Education

Merit-based (awarded based on academics and extracurriculars)

• Scholarships

• Grants

• Work‐Study

Part time employment to earn money while in school.

• Scholarships

• Grants

• Work‐Study

A need-based (awarded based on your family’s financial need)

• Scholarships

• Grants

• Work‐Study

These loans are funded by the federal government.

• Low‐cost federal loans

• Higher cost private loans

Unsubsidized – You pay the interest.

• Low‐cost federal loans

• Higher cost private loans

Can be consolidated.

• Low‐cost federal loans

• Higher cost private loans

Cannot be consolidated.

• Low‐cost federal loans

• Higher cost private loans

Do not have to start repaying until you graduate.

• Low‐cost federal loans

• Higher cost private loans

Non-federal and exclusively offered by a lender such as a bank, credit union, or a school.

• Low‐cost federal loans

• Higher cost private loans

All of the following are examples of free money you do not have to pay back EXCEPT

• Scholarship

• Grant

• Work Study

• Subsidized Loan