Scholarships and Grants

It is hard to believe that the new school year is almost upon us.  Very soon students will be returning to classes, meeting new teachers, making new friends, and settling into the routine of the semester.  In addition, many high school seniors will be turning their attention to the next step of their academic career - applying to college and finding a way to pay for it.  When it comes to funding a college education, most students will require some type of financial aid with the most preferred being scholarships and grants.  Scholarships and grants are the most sought-after types of financial aid. However, many students (and their parents) don’t realize they are different.  So, let’s take a quick look at these financial aid vehicles.

Scholarships are awarded to students based on merit. Individual recipients receive scholarships based on their achievements in the classroom, sports, or some other type of activity.  The source of most scholarships is College Departments, Alumni, Businesses, Community Organizations, Religious Organizations, Philanthropists and the Military (ROTC).  Grants are “needs” based.  This means grants are awarded based on the student’s or his/her family’s financial situation.  The sources for grants vary.  While many colleges offer some type of grants, most grants come from the federal and state government.  The most well known federal grant is the Pell Grant; also many states offer grants for in-state students. 

If a student wishes a scholarship or grant, it is important to start the application process early in his/her senior year of high school.  The procedure is fairly simple. First, it is required that a student complete the FAFSA (Free Application for Federal Student Aid).  This can be done online at https://fafsa.ed.gov/.  Next, find out what financial aid forms your college requires. Finally, research and apply for outside scholarships.  In addition, it is recommended that a student and his/her parents talk with the high school guidance or college placement counselor. It is also encouraged that a student and his/her parents schedule a personal appointment with the college financial aid office.  If you are a prospective college athlete, it is very important to register with the NCAA Eligibility Center (formerly the NCAA Clearinghouse) and to meet with your high school athletic director and coach to discuss the recruiting process.

Once a scholarship or grant is awarded, this does not mean that the student is “free and clear” for the rest of his/her college career.  Scholarships and grants have certain requirements for the student to satisfy to keep the award in force. This means a recipient must maintain a specified minimum GPA, course load, and full-time admittance status.  Some scholarships or grants also have a work requirement associated with them that must be met.  In the case of a scholarship athlete (or student-athlete in general), certain minimum NCAA eligibility requirements must be met along with the practice, training, and game commitments.  If an individual accepts an ROTC Scholarship from one of the branches of the armed forces, the student will have drill and Summer Camp commitments.  Upon graduation, Military Service as an officer will be required. 

Given the increasing cost of college tuition plus mounting student loan debt, scholarships and grants are an excellent source of financial aid.  Just remember, these two awards are different and there are obligations that go with them.  Your guidance counselor and the internet are excellent sources of information to help to locate the right scholarship and/or grant to help finance a college education.  Have a Great School and Successful Year!!! 

Matt Dressel is the Owner of the Independent Financial Solutions Group, a Registered Investment Advisor.  He is an Investment Advisor, Life Insurance Agent and does Financial Planning.  If you have any questions about this article, he can be reached at 252-515-0242 or matthewdressel.ifsg@gmail.com.