Scholarships & Grants
You don't need to pay anyone to search for scholarships or grants. There are scores of sales-oriented Web sites that claim knowledge of superior, and highly secret, funds-generating techniques. Expert insiders promise to uncover "hidden" troves of money that "they" don't want you to know about. Testimonials, limited-time offers, and subscriptions to services that claim to provide thousands of dollars in awards provide a whiff of authenticity. Most are long on promises and short on guarantees. If something sounds too good to be true, maybe it is.
If you have decided to return to school online, you have demonstrated that you want to take control of your life. Find out who is giving money away, then ask for it. Even in these economic times scholarships, grants, and loans are still available to eligible students. You can conduct your own search for ways to help pay for your education.
Pick the Low-Hanging Fruit
Grants and scholarships are similar in that they do not have to be repaid. You will almost certainly have to meet certain criteria in order to apply, and agree to maintain certain conditions or standards in order to stay eligible, but you do not have to pay the money back. Money that you borrow — a loan — has to be paid back. Even if you do not complete your education, even if you are not satisfied with the program in which you enrolled, even if you don't make a lot of money once you graduate — if you borrowed money, you have to pay it back.
Grants from the federal government are typically awarded based on need or the ability to fulfill other non-financial conditions. Eligible students can receive funds to help cover the distance between the amount of money they have, and what their education actually costs. You have to need the money and be eligible to receive it. You must first complete the FAFSA link to FAFSA article elsewhere in the Guide to Online Education to apply.
You don't need a "strategy" to complete the FAFSA. And it doesn't cost anything. That is why it's called the "Free Application for Federal Student Aid." Don't be scared off by companies who deem the application process "endless," "daunting," "complicated," or "stressful" and then offer to fill in the form for you over the phone… for a fee. No matter what they promise, they cannot move your application to the "head of the line." The best plan is to apply early, supply the most accurate financial information you have at the time, and submit your application online at the official government site http://www.fafsa.ed.gov/index.htm instead of mailing it in. The process has been streamlined and simplified. There are prompts, tips, and live help to ensure your success.
You may be eligible for one or more of these grants:
- Federal Pell Grant
- Academic Competitiveness Grant (ACG)
- National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)
- Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)
- Federal Supplemental Educational Opportunity Grants
Federal grants are just the starting point; research you eligibility for other sources, such as state grants. Visit the Department of Education's official site for a complete list of awards and eligibility requirements.
Reach Out for Merit or Academic Scholarships
Scholarships are available from a variety of sources. Some are based upon need; many are based upon past academic achievement. Depending on the amount of the award at stake and the number of applicants who are eligible to apply, it can be competitive. The opportunity to compete for a scholarship may be open to anyone in the general public, or may be limited to a select group. Companies, local governments, clubs, organizations, private individuals or foundations may fund a scholarship to promote a certain value or mission; or to reward those of a certain profession, military branch, religious affiliation, gender, age group, orientation, ethnic background, victims of tragedy, and so on. Spouses and offspring of those groups may be eligible to apply, too.
The financial aid office of the school you attend, or plan to attend, should have a comprehensive list of available scholarships. There are literally thousands of scholarships referenced on Internet Web sites. Research as many of the options as possible in the time that you have. And be sure to make use of the Debt-Free College Guide.
Ask for More
You must complete the FAFSA yearly. Your financial status may change over the course of your enrollment. A job loss, an addition to the family, and your current education expense burden are some of the factors that affect your status. You may be eligible for more aid if you need it. Communicate with your school's financial aid office regularly, but especially if you fall on hard times. Other options to help pay your tuition and expenses may be available.
Is Free Money Really Free?
In general, a scholarship is tax-free if you are a degree candidate and the scholarship is used for tuition and required fees, books, supplies and equipment. You must include in gross income amounts used for other purposes such as optional equipment or travel. The area is highly nuanced. It is best to seek the advice of a trusted tax professional.
If you are not a degree candidate, the full amount of your award is subject to income tax — even if you used the money for tuition and required expenses.
Generally speaking, federal and state grants for education are not taxable. For complete guidelines and restrictions, visit the IRS online.
