How to Avoid Student Debt: Free Money Options for College Students

College tuition has become a major concern for students and their families today. But the good news is that some types of financial aid are absolutely free money that you don’t need to repay! If you’re planning to attend college or are already enrolled, it’s important to know how you can take advantage of these opportunities and avoid the burden of student loans.

Grants: Free Money to Study

Grants are one of the best financial aid options for higher education. They are typically awarded to students based on their financial need and do not need to be repaid unless there are special circumstances.

The most common federal grants include:

Federal Pell Grant – This is awarded to low-income undergraduate students and does not need to be repaid.
Federal Supplemental Educational Opportunity Grant (FSEOG) – This is for students who are in extreme financial need and study at colleges that participate in this program.
TEACH Grant – This is given to students who are planning to become teachers in high-demand subjects. But if they don’t complete their teaching service terms, this grant turns into a loan that has to be repaid.

If you are looking for funding for college, grants should be the first priority because they do not need to be repaid.

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Scholarships: Free money based on talent and financial need

Scholarships are also a great way students can cover their education expenses without taking out loans. They are usually offered by educational institutions, nonprofit organizations, and private companies. Scholarships can be awarded based on a variety of factors, such as:

Academic achievement (such as good grades and high test scores)
Excellence in sports, art or music
Financial need
Planning a career in a specific field

Scholarships never need to be repaid, so they are a great financial aid option.

Work-Study Program: Earned Study

The federal work-study program offers students the opportunity to earn money and pay for college through part-time jobs. Under this program, students get the opportunity to work in fields related to their studies and are paid at least the federal minimum wage. The advantage of work-study is that it does not increase student debt and students also gain work experience.

Student Loans: Repayable

Unlike grants and scholarships, student loans must be repaid and interest must be paid on them. Although these provide financial aid for students, one must understand the terms and conditions before taking them. If possible, explore all free money options (grants, scholarships, and work-study) before taking loans.

Conclusion: Choose the right financial aid option

When planning to fund college, grants and scholarships are the best options as they do not need to be repaid. Work-study programs give students the opportunity to study while earning money, allowing them to cover their expenses without loans. Loans should always be the last option, as they have to be repaid with interest.